Delta Air Lines Exec Says “Looks Like Industry Capacity Is Reaching A Peak In 2q. So I Think We See A Great Setup For The Back Half Of This Year”; “We Still Have More Debt Than We’re Comfortable With”.
Delta Air Lines Exec Says “Looks Like Industry Capacity Is Reaching A Peak In 2q Read Post »
Delta Air Lines Exec Says On Wide Body Jets, Says Co Is Now At Or Above 2019 In Terms Of Annual Utilization.
Wells Fargo analyst Roger Read maintains ConocoPhillips (NYSE:COP) with a Overweight and raises the price target from $141 to $149.
Wells Fargo analyst Roger Read maintains ConocoPhillips (NYSE:COP) with a Overweight Read Post »
Nvidia (NVDA) is the best way to get exposure to artificial intelligence as visibility into strong spending continues to build, Morgan Stanley said in a research note. “Even given strong YTD appreciation, we make the case for maintaining outsized exposure to AI – and that, increasingly, Nvidia is the best way to get that exposure in our coverage,” Morgan Stanley analysts said. Demand is particularly strong among customers working to develop systems for artificial intelligence applications, they said. “Faced with limited slots for AI processors, we are seeing some of the appetite for alternatives taking a back seat to the highest ROI processor, which continues to be Nvidia,” the analysts said. Nvidia has also benefitted with its product execution and has been signaling it may keep would-be competitors at bay with aggressive pricing, the report said. Morgan Stanley reiterated its overweight rating on Nvidia while raising its price target to
Nvidia Offers Best Exposure to Artificial Intelligence, Morgan Stanley Says Read Post »
Boeing’s (BA) increased regulatory oversight and slower production could make the company’s delivery and free cash flow targets difficult to achieve, Morgan Stanley said Wednesday while pointing to lower-than-expected first-quarter deliveries from the production line. The brokerage reduced its price target on the stock to $180 from $235. It reiterated an equal-weight rating, saying that the risk-reward is balanced at current levels. Boeing data showed Tuesday that its first-quarter deliveries tumbled to 83 from 130 a year earlier. Deliveries of the 737 model, which has been the focus of several recent incidents including when a side panel blew off of an Alaskan Air (ALK) flight in January, was 67 in the first quarter, according to Boeing. Data from Cirium point to 40 of those coming from the production line and 27 from inventory, Morgan Stanley said. “An estimated 40 737 deliveries from the production line are much lower than we
Leading electric vehicle company Tesla Inc (NASDAQ:TSLA) could be putting more emphasis on highlighting its driver-assistance tools. According to an analyst, Tesla’s full self-driving (FSD) software and potential remain robust. The Tesla Analyst: Piper Sandler analyst Alexander Potter had an Overweight rating on Tesla and lowered the price target from $225 to $205. The Analyst Takeaways: Estimates were cut for Tesla by Potter after weaker-than-expected first-quarter vehicle deliveries and a challenging demand outlook in 2024 and 2025. While 2024 and 2025 could be challenging for Tesla, Potter highlighted the FSD software potential for Tesla. “TSLA is our lowest-conviction Overweight-rated stock over the next year,” Potter said. “However, we still think TSLA warrants a place in clients’ portfolios, especially for growth-oriented investors who are eager to take advantage of sell-offs in the coming few quarters.” The analyst saw the long-term optimism is due to FSD software from Tesla, which could have gross margins of more than 50%.
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Ahead of the Q1 earnings release on April 16, we lower our 12-month target price by $20 to $497, 18x our 2024 EPS estimate (down by $0.18 to $27.62; we cut our 2025 estimate by $0.16 to $31.20), above peer multiples, but below UNH’s three- and five-year averages of 21.7x and 20.2x, respectively. CMS recently finalized its CY 2025 average benchmark rate change for Medicare Advantage at -0.16%, below market expectations for a small increase, in our view, though some improvement from the 1.14% cut in CY 2024. We think the rate change may put further pressure on industry margins, particularly as the industry is battling rising medical loss ratios due to deferred care from the pandemic and higher levels of medical utilization. Following the cyberattack on
CFRA Maintains Hold Opinion On Shares Of Unitedhealth Group Incorporated Read Post »
The following is a summary of the Delta Air Lines, Inc. (DAL) Q1 2024 Earnings Call Transcript: Financial Performance: Delta reported pre-tax earnings of $380 million, a $0.20 improvement from the previous year, and a 6% higher revenue for Q1. Free cash flow was recorded at $1.4 billion, and the return on invested capital was nearly 14%. Delta distributed $1.4 billion amongst its employees in terms of profit-sharing. For the June quarter, Delta expects a revenue growth of 5% – 7%, earnings between $2.20 to $2.50 per share, and a target of mid-teens operating margin. In a bid to reduce its financial risk, Delta plans on reducing its debt, which is currently larger than what the company feels comfortable with. Both the upcoming Paris Olympics and struggles with American Express card acceptance rates in Europe may affect revenue projection. Business Progress: Delta delivered strong operational performance with mainline cancellations down
Delta Air Lines(DAL) Q1 2024 Earnings Conference Read Post »
BofA Securities analyst Justin Post reiterated a Buy rating on Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), with a price forecast of $173. Google kicked off its annual Cloud Next event with a keynote announcing new custom AI chips (Axion & TPUs), platform-wide Gemini integration, strategic partnerships, and customer traction. According to the analyst, Google’s hardware advances, Gemini progress, and AI-driven app demos should help sentiment on AI capabilities. Apart from this, Google’s hardware advances, Gemini progress, and AI-driven app demos should help sentiment on AI capabilities, the analyst adds. Post writes that the Cloud AI cycle could be underappreciated for the industry and a positive driver for Google stock given the growing scale & potential contributor to higher overall revenue growth. In addition, increasing cloud margins aiding EPS and growing stock valuation contribution on ’26 revenues can be positive drivers for Google stock. The analyst specifically highlighted the new custom Axion AI chip (CPUs) in
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target of $55, up $7, is 7.7x our ’25 EPS view (down to $7.16 from $7.41; ’24’s cut to $6.15 from $6.51), below DAL’s historical average. We think a discount is merited due to ongoing issues with Boeing (BA 173 **), causing further delays in new aircraft deliveries for DAL (expected deliveries of 20 737 MAX 10 variants in ’25, now likely delayed to ’27, per DAL). Q1 EPS of $0.45 vs. $0.25, beat consensus by $0.08. Q1 revenues were up 8% Y/Y, driven by its international segment (+12%), while capacity grew 7% Y/Y. DAL reiterated its ’24 outlook (EPS in the range of $6-$7/share; FCF in the range of $3B-$4B). The EIA forecasts WTI to average $84/b in ’24 vs. $78/b in ’23; DAL
CFRA Keeps Strong Buy Opinion On Shares Of Delta Air Lines, Inc. Read Post »
Costco Wholesale Corporation Reports March Sales Results and Announces an Increase in Its Quarterly Cash Dividend ISSAQUAH, Wash., April 10, 2024 (GLOBE NEWSWIRE) — Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $23.48 billion for the retail month of March, the five weeks ended April 7, 2024, an increase of 9.4 percent from $21.46 billion last year. Net sales for the first 31 weeks were $146.64 billion, an increase of 6.4 percent from $137.77 billion last year. Comparable sales for the periods ended April 7, 2024 were as follows: 5 Weeks 31 Weeks U.S. 7.3% 3.8% Canada 8.9% 8.1% Other International 8.6% 9.6% Total Company 7.7% 5.2% ======= ======== E-commerce 28.3% 14.8% ======= ======== Comparable sales excluding the impacts from changes in gasoline prices and foreign exchange were as follows: 5 Weeks 31 Weeks U.S. 7.4% 4.3% Canada 7.3% 8.5% Other International 8.4% 7.9%
Costco Wholesale March Comparable Sales Rise 7.7%; Reports Net Sales Of $23.48B For The Retail Month Of March, Up 9.4% Y/Y.