Nvidia Shows ‘No Sign of Slowing Down’ After Another Beat, Morgan Stanley Says

/ / Technology /

Nvidia (NVDA) is showing “no sign of slowing down” after its Q1 beat with revenue of $26.04 billion compared to Wall Street expectations of $24.59 billion, Morgan Stanley said Thursday in a note. The firm said Nvidia has an upside of $2 billion that is before new product hits the markets in H2. “The $2 billion of upside is coming from product that will be winding down over the next nine months, with a transition to Blackwell which will take us right back into allocation,” Morgan Stanley said. The company continues to be the “clearest way” to get exposure to artificial intelligence “even amid extreme enthusiasm,” the firm said. “With the rally in other compute names with AI exposure, Nvidia actually becomes easier to rationalize.” The firm also said the customer demand and front line sales are more optimistic than what “supply chain or lead time would indicate.” Morgan Stanley […]

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Analog Devices (ADI) Rides Past ‘Bottom’ With Strong Outlook, Morgan Stanley Says

/ / Technology /

Analog Devices (ADI) is heading for a recovery after managing the downcycle well with a stronger than expected fiscal Q3 outlook, Morgan Stanley said in a note. “The company has excelled in managing the downcycle and remains our preferred name as we enter an analog upcycle,” Morgan Stanley said in the report. Among the reasons for optimism were improving bookings in all markets, rising sell-through in Q3 from Q2, and decreasing channel inventory, according to the report. “The company validated our June quarter inflection thesis and has given reason to be encouraged that we should start thinking about the strength of the recovery from here,” the report said. After the results, Morgan Stanley revised its estimates for 2024 to $9.382 billion with a margin of 68% and EPS of $6.40, compared with $9.035 billion, 68.2%, and $5.70 previously. Morgan Stanley raised its price target on the stock to $260 from

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Target to See Lower Comparable Q2 Sales, BofA Says

/ / Consumer Discretionary /

Target (TGT) is expected to have lower comparable sales in Q2, but are still expected to rise, BofA Securities said in a note Thursday. Target is expected to have lower Q2 comparable sales, making the brokerage lower its Q2 sales projection to a 1% increase compared to previous estimate of 3% increase. This is due to “continued softness in discretionary categories (most notably home & hardlines), and softening trends in frequency categories.” However, that means Target is expected to deliver sales results within its guidance of flat to 2% increase. The company recently announced a new pricing strategy with rewards programs and owned products focused on entry-level price points that will help in increase traffic and market share. BofA’s forecast for fiscal year 2025 EPS is unchanged at $9.45 given Q1 performance that surpassed its estimates.. BofA reiterated a price objective of $190 for Target with buy rating.

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CFRA Keeps Sell Opinion On Shares Of The Boeing Company

/ / Industrials /

Our 12-month target price of $147, cut $4, reflects a 26x multiple of projected 2025 EPS, in line with BA’s long-term historical forward average. We now see a 2024 operating loss per share of $0.31 (vs. our prior EPS estimate of $0.37) and cut our 2025 EPS estimate by $0.39 to $5.65. Today, BA noted that Q2 commercial aircraft deliveries are not likely to improve on Q1 levels, which were a woeful 83 units (including just 67 of the 737 MAX, BA’s flagship product). This jibes with our view (since February) that the recovery process from the Alaska Air flight 1282 incident could stretch on for a long period of time. We remain very skeptical that BA can achieve its goal of 50 units per month of the 737 MAX by 2025/2026. We think the FAA is likely to keep close scrutiny on BA’s facility floors and the ongoing process

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Boeing Shares Drop After CFO Says Q2 Deliveries Won’t Recover From Q1

/ / Industrials /

Boeing (BA) shares fell 6.7% in recent Thursday trading after Chief Financial Officer Brian West said the aircraft manufacturers’ deliveries would not recover in Q2, remaining in line with Q1 due to ongoing production challenges. West confirmed that the Civil Aviation Administration of China has requested additional validation on a lithium battery, causing Boeing to halt airplane deliveries to China. This is expected to impact quarterly deliveries and cash flow, he said. The Boeing Defense, Space and Security division’s Q2 margins will be negative due to the cost pressure on the fixed-price development program, West said at the Wolfe Research Global Transportation & Industrials Conference. “Secondly, the factory actions that are happening in Puget Sound do have a knock-on effect on derivative programs,” the executive said.

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Why Snowflake’s Stock Is Falling Despite a Boost to Guidance

/ / Technology /

By Emily Bary Bernstein worries that ‘expectations may creep too high for next quarter’ and says the AI messaging looks murky Trends are improving at Snowflake Inc., but perhaps not enough to settle the investor debate over the controversial software stock. One highlight of Snowflake’s (SNOW) latest earnings report was that the company upped its full-year forecast for product revenue, having disappointed big time with its initial guidance three months back. But some analysts aren’t yet convinced that Snowflake shares are primed for a major rally. The new outlook and growth in remaining performance obligations “might overly inflate investor expectations,” according to Bernstein’s Mark Moerdler, who added that Snowflake’s artificial-intelligence strategy seemed murky. He and his team “worry that confidence in growth durability and management’s credibility in estimating the revenue/growth opportunity are tenuous, and expectations may creep too high for next quarter,” he wrote. “More importantly, the company’s long-term strategy

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CFRA Keeps Buy Opinion On Shares Of Citigroup Inc.

/ / Financials /

We raise our 12-month target to $71 from $67 on a wider P/E multiple of 11.5x our 2024 EPS estimate, below the 12.5x peer average. We still value C as one of the few large U.S. banks trading below net tangible book value (NTBV) – C’s at $81.65, currently trading at a 23% discount to NTBV. We keep our EPS at $6.20 in 2024 and $7.25 in 2025. C is executing on its new strategy and we like how the bank will be positioned for growth across institutional markets. C has leading franchises in corporate treasury services, technology platforms, and expanded global wealth. We think C can execute and close the gap on price to NTBV, driven by the Services segment (treasury and trade solutions), which had 8% fee revenue growth in Q1 comps, and a continued upturn in Banking, which includes investment banking fees from all areas. Net interest

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Analysts Highlight Target’s Market Share Struggles And Increased Competition: Details

/ / Consumer Discretionary /

Yesterday, Target Corp (NYSE:TGT) reported its first-quarter FY24 earnings and the following are the comments on the same by different analysts. BMO Capital – Reiterates Market Perform, lowers price target from $170.00 to $155.00 Analyst Kelly Bania said that while Target’s first-quarter results were in line with her expectations, investor expectations for continued GM% upside were clearly reigned in. With signs of share losses widening in food & consumables, continued weakness in digital growth and signs of increasing same-day competition from Amazon.com Inc (NASDAQ:AMZN) and Walmart Inc (NYSE:WMT), the analyst lowered the price target to $155. The analyst believes 6% EBIT margins remain the target, but the pace of achieving the target could take longer than expected. RBC Capital Markets – Reiterated Outperform, lowers price target from $191.00 to $181.00 Analyst Steven Shemesh opined that with the majority of the easy gross margin wins in the rearview, the focus will shift back to demand trends /market

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Salesforce Q1 Results Likely to Exceed Low Expectations, Oppenheimer Says

/ / Technology /

Salesforce (CRM) fiscal Q1 results are expected to surpass already low expectations, Oppenheimer said in a note Thursday. The company expects Q1 adjusted earnings per share of $2.37 to $2.39 on revenue of $9.12 billion to $9.17 billion. Salesforce is expected to report Q1 results on Wednesday, and Oppenheimer expects its revenue to be around $9.15 billion, up 11% year-over-year, with a pro forma EPS of $2.37. “Our earnings preview research mosaic points to mixed business trends and negative [foreign exchange] headwinds in [Q1 of 2025] that foretells little changes to estimates and fundamentals,” Oppenheimer said, adding that it expects durable margin improvement and EPS growth, supporting valuation multiples. Expectations are low going into the first quarter, while the company’s pricing strategies, platform business and Data Cloud are expected to remain, strong growth drivers, this year, the note said. Salesforce pulled out of the deal to acquire Informatica (INFA) in

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Nvidia May Achieve EPS Above $50 in 2 Years Amid Faster Blackwell Adoption, BofA Says

/ / Technology /

Nvidia (NVDA) likely has the potential to achieve annual earnings in excess of $50 a share within two years amid faster adoption of its recently launched Blackwell platform, BofA Securities said in a note e-mailed Thursday. The chipmaker late Wednesday logged fiscal first-quarter results that topped Wall Street’s estimates as demand for generative artificial intelligence drove record data-center revenue. The next-generation Blackwell AI factory platform, which was launched in March, is in full production, Chief Financial Officer Colette Kress said on an earnings conference call, according to a Capital IQ transcript. “Blackwell is a giant leap with up to 25x lower (total cost of ownership) and energy consumption than Hopper,” Kress told analysts late Wednesday. “Demand for H200 and Blackwell is well ahead of supply, and we expect demand may exceed supply well into next year.” Hopper is Nvidia’s graphics processing unit computing platform used for the training of large

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