Target’s Recovery Looking Well on Its Way

/ / Consumer Discretionary /

Target’s 4Q results and 2024 guidance are evidence that the retail giant is rebounding from a rocky 2023, as seen by its continued margin recapture and sequential improvements on the top line, UBS analysts say in a research note. There was quarter-to-quarter improvement in most discretionary categories, including toys and consumer electronics, which coincided with some sequential moderation in food inflation, the bullish analysts say. That suggests that a lack of food inflation this year could unlock some extra dollars in consumers’ budgets for discretionary spending, they say, raising their price target on the stock to $191 from $174. Shares rise 3.8% to $175.04.

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Ross Stores (NASDAQ:ROST) Q4 2023 Earnings Conference

/ / Consumer Discretionary /

The following is a summary of the Ross Stores, Inc. (ROST) Q4 2023 Earnings Call Transcript: Financial Performance: Ross Stores exceeded Q4 predictions, with earnings per share rising to $1.82, a significant leap from the previous year’s $1.31. The company saw Q4 2023 sales climb to $6 billion, boosted by a 7% increase in comparable store sales. Net income for fiscal year 2023 rose to $1.9 billion from $1.5 billion recorded in the previous year, whilst earnings per share increased to $5.56 from $4.38. The 2023 fiscal year results included a beneficial $308 million and an additional $0.20 per share due to the 53rd week. Q4 saw an operating margin increase of approximately 165 basis points to 12.4%. The company repurchased 1.9 million shares of common stock for $247 million in Q4 and 8.2 million shares for $950 million throughout the fiscal year. For 2024, earnings per share are projected

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Selling Apple Stock Would Be A ‘Historically Wrong Move,’ Says Wedbush’s Dan Ives: ‘We View This As A Buying Opportunity’

/ / Technology /

In a recent interview, an analyst warned that selling Apple Inc (NASDAQ:AAPL) stock before the company’s AI developments could be a significant mistake. What Happened: During a segment of CNBC’s “Last Call,” Dan Ives, a Wedbush analyst, suggested that divesting Apple stock at this juncture would be a grave error. “We view this as a buying opportunity. We’ve been here before … AI is coming to Cupertino. I think to sell this stock ahead of that would be not just the wrong move, but a historically wrong move,” Ives said. Ives’ perspective follows a reported 24% decline in Apple’s iPhone sales in China during the initial six weeks of the year, resulting in its demotion to the fourth position among smartphone vendors in the country, according to Counterpoint Research. “We view this as a buying opportunity. We’ve been here before,” says @DivesTech on Apple. “AI is coming to Cupertino. I think to sell

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CrowdStrike Holdings (NASDAQ:CRWD) Q4 2024 Earnings Conference

/ / Technology /

The following is a summary of the CrowdStrike Holdings, Inc. (CRWD) Q4 2024 Earnings Call Transcript: Financial Performance: CrowdStrike reported a Q4 net new ARR of $282 million, a 27% year-over-year growth. Record GAAP profitability was achieved, with a record free cash flow reaching 33% of revenue. CrowdStrike reported a 34% and 36% growth in ending ARR and revenue respectively for the fiscal year. Operating income for the fiscal year grew by 86%, reaching $660.3 million or 22% of revenue. Gross margin increased by 282 basis points year-over-year to 78%, with total non-GAAP operating expenses at 53% of revenue. Q4 revenue grew to $845.3 million, a 33% increase. Business Progress: CrowdStrike has shown significant growth in its Falcon platform, closing record deal volumes and introducing flexible licensing models for customers. The company plans to continue expansion and development of its cybersecurity solutions, with successful launches and general availability of new

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Tesla Faces Uphill Battle: Morgan Stanley Analyst Adam Jonas Cuts Target Price, Forecasts Lower FY24 Sales Volume

/ / Consumer Discretionary /

Morgan Stanley analyst Adam Jonas on Tuesday noted both product and market issues as he slashed target price and FY24 earnings estimates for EV giant Tesla Inc (NASDAQ:TSLA). Analyst Rating: The analyst cut the target price from $345 to $320 while maintaining an ‘overweight’ rating. Tesla Thesis: In a note, the analyst noted the several downsides plaguing Tesla at the minute including dwindling EV demand, older product line-up as compared to other automakers, heavy competition and price war in China, and not the least, the increasing popularity of hybrids over battery electric vehicles in the company’s primary market of U.S.. “If there was ever a time for Tesla to potentially post a GAAP EBIT loss in the auto business, it may be this year,” Jonas wrote. The analyst said that he expects the EV giant’s first-half results for the year will fail to meet expectations with GAAP operating margins in the 2-3% range. After taking a severe

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CFRA Adds Eli Lilly To The High-quality Capital Appreciation Portfolio

/ / Health Care /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We add Eli Lily and Company (LLY) to CFRA’s High-Quality Capital Appreciation Portfolio. LLY is one of the largest U.S. drug makers in terms of revenue and is a leading developer of drugs in a wide range of therapeutic areas such as endocrinology, which includes a diabetes drug portfolio that generates more than half of its total revenue. We are increasingly optimistic on LLY’s many ongoing efforts, including late-stage therapies such as donanemab (for Alzheimer’s disease), pirtobrutinib (for certain forms of leukemia and lymphoma), and tirzepatide (for sleep apnea and cardiology). Such innovation could complement LLY’s 10 key current drugs, which represent the majority of LLY’s total sales. LLY replaces CVS Health Corporation, which was downgraded to a Hold recommendation.

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Microsoft-Backed OpenAI Remains ‘Uncontested Leader’ in Artificial Intelligence, Macquarie Says

/ / Technology /

Microsoft-backed (MSFT) OpenAI continues to be the “uncontested leader” in artificial intelligence despite the cases filed against it by Tesla (TSLA) Chief Executive Elon Musk and The New York Times (NYT), Macquarie said in a note emailed on Monday. Musk is seeking the removal of GPT-4 from the scope of Microsoft’s intellectual property licensing agreement with OpenAI, while The New York Times sued OpenAI for copyright infringement. “But, regardless of these cases, we have seen the performance gap between GPT-4 and other models narrow, but certainly not close, throughout 2023,” the note said. Macquarie said Microsoft’s Copilot product roadmap would likely be set back if GPT-4 becomes inaccessible to the company because of any of those cases. “But we do not think it would derail its AI product initiatives by any means,” Macquarie said. Macquarie maintained its outperform rating and $455 price target on Microsoft stock.

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DoorDash Close in on Profitability With New Ventures, International Market, RBC Says

/ / Technology /

DoorDash (DASH) has the potential to stabilize profitability with entry in new verticals and international markets, RBC Capital Markets said in a note Monday. DoorDash’s new verticals and international segment may have peaked at losses of around $1.3 billion annually, RBC added. The firm expects that while the company’s core business investment may be minimal, new vertical losses are unlikely to increase year-over-year. The investment firm said it previously underestimated the company’s order growth resilience primarily because of the frequency “which should continue to be a multi-year mid-to-high-teens grower.” DoorDash’s potential partnerships, particularly with LYFT (LYFT), could drive significant incremental orders and enhance its loyalty program, according to the note. The firm said consumer concerns and slow expansion into non-restaurant verticals remain a risk to the company’s growth with low likelihood and potential for upward estimate revisions. RBC raised DoorDash’s stock rating to outperform from sector perform and increased the

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