Shares of Gap Inc (NYSE:GPS) are up double digits Friday on the company’s strong first-quarter results, but UBS analysts didn’t buy into the hype.
The firm reiterated its Sell rating and lowered its price target to $6 from $7 in a note published prior to the results Thursday.
Rumors that DISH Network is in talks to sell wireless plans for its new mobile phone service on Amazon.com sent shares of the pay-TV company higher this week, but investors should take heed, analysts say.
Implications of a potential DISH distribution agreement with Amazon will depend on details, according to brokers at UBS.
The recent slowdown impacting semiconductor company Analog Devices isn’t a concern for analysts at Baird Equity Research who noted that the company has historically navigated downturns well relative to its peers.
In a note to clients following the release of Analog Devices’ second quarter 2023 earnings, the analysts pointed out that the recent slowdown was driven by incremental China weakness, including in their EV market.
A new class of players have entered the video advertising landscape and have a chance to disrupt the $820 billion advertising market, analysts at UBS say.
Advertising video on demand (AVOD) and free ad-supported television (FAST) have both emerged as alternatives to linear TV, and UBS estimates that these offerings could reach more than 15% of the global ad market over the next five years.
New market research showing weakening US consumer demand for soft goods has sparked analysts at UBS to reiterate their bearish view on Softline retail stocks in a report published on Monday.
Soft goods, or Softline goods, are nondurable products that are naturally ‘soft’ and are commonly used in textiles such as bedding, apparel, footwear, hats, curtains, towels, and belts.
There are a number of positive catalysts on the horizon for Endeavour Mining PLC, according to analysts at Barclays who reiterated that the stock remains its preferred precious metals equity exposure in Europe.
In a note to clients, the analysts highlighted that on May 11, it was revealed that the West Africa-focused gold miner would be included in the MSCI Standard Development Market indices, with the rebalance effective after the market close on May 31.
Evidence of the global demand for artificial intelligence (AI) formed a large part of NVIDIA Corporation's (NASDAQ:NVDA) blowout numbers that will lead to a 25% surge to a market value of almost US$1 trillion today.
A sizeable boost was seen for the wider chipmaking sector, other AI-driven companies and the investment funds that back them, with analysts saying some of this would be related to short-covering after some recent warnings of an AI bubble.
Broadcom has earned a repeat ‘Buy’ rating and an unchanged price target from UBS analysts after the technology company announced it has entered into two multi-year agreements with Apple to supply radio frequency (RF) and wireless components and modules.
The analysts noted that this deal appears to be largely a re-up of the supply agreements signed between the two parties in 2019 and 2020, which covered the supply of Broadcom’s products through to 2023.
The best-performing US big cap biopharma company this year still has lots of room to grow, according to brokers.
Eli Lilly and Co (NYSE:LLY) “still offers one of the cleanest, de-risked growth stories” in the large cap pharmaceutical space, UBS analysts wrote in a note this week.
As part of its crackdown on password sharing, Netflix Inc (NASDAQ:NFLX) recently introduced an option for users to pay an extra $7.99 per month to add an additional member to their account.
Analysts at Oppenheimer are a fan of this move, upping their price target for the streaming giant to $450 from $415 and reiterating an Outperform rating.
Breast cancer drug clinical trial milestones and mergers and acquisitions (M&A) in 2023 should be catalysts for Atossa Therapeutics Inc (NASDAQ:ATOS)’ stock, according to analysts at Ascendiant Capital Markets.
“Atossa anticipates finishing or making significant milestones on its various clinical trials over the next year,” the analysts wrote in a note to clients published following the company’s first-quarter results, which they noted were in line with expectations.
Petco Health and Wellness Company (WOOF) is likely to meet the Street’s expectations when it reports its first quarter earnings and this could set the pet and pet owner health and wellness company up for an improved full-year 2023, according to analysts at UBS.
In a note to clients, the analysts wrote that they think the market will walk away from Petco’s 1Q earnings with more confidence in its near-term outlook.
Canaccord Genuity (TSX:CF, LSE:CF) analysts initiated coverage of DICE Therapeutics, a biopharmaceutical company focused on treating chronic autoimmune and inflammatory diseases, on Monday with a ‘Buy’ rating and a 12-month target price of $71 per share, noting the company’s lead compound DC-806 for treating plaque psoriasis (PsO) has “blockbuster potential.”
This price target is more than double the company's current share price as of Tuesday afternoon of $34.17.
Zoom Video Communications Inc (NASDAQ:ZM) posted a mixed quarterly print, marked by a solid first-quarter beat on revenue and profit margins and higher full-year 2024 revenue guidance, UBS said in a note as it reaffirmed its 'Neutral' rating for the stock.
While its 1Q earnings were positive, the broker said the results were offset by a “material step-down” in the company’s growth outlook for its Enterprise segment, which accounts for 57% of revenue and is the main growth engine.
Cardiol Therapeutics (TSX:CRDL, NASDAQ:CRDL) has retained a ‘Buy’ rating with an increased price target from Canaccord Genuity (TSX:CF, LSE:CF) analysts following the release of its first-quarter results.
As of March 31, 2023, Canaccord said Cardiol had cash and cash equivalents of C$49.5 million, which the company’s management believes will be sufficient to achieve corporate milestones and fund operations into the second quarter of 2026.
Analysts at UBS have upped their price target on Bath & Body Works after the body care and home fragrance retailer posted better-than-expected first quarter results.
The analysts increased their price target to $38 from $35 but noted that they were maintaining their ‘Neutral’ rating on the stock.
Applied Materials Inc’s second-quarter results beat Street expectations last week, but analysts at UBS aren’t buying into the hype.
Despite posting earnings of $2 per share on revenue of $6.63 billion that topped estimates of $1.83 per share and $6.37 billion, respectively, UBS reiterated its 'Neutral' rating and $120 price target in a note published Thursday.
Victoria's Secret & Co. (NYSE:VSCO) likely had a challenging first quarter due to decelerating trends across Specialty Retail, UBS said as it maintained its 'Sell' rating on the stock.
In a note ahead of its 1Q earnings release after the market close on Wednesday, May 31, the broker forecast an $0.11 earnings per share (EPS) miss and said it expects the company to lower its full-year EPS guidance, which could lead to downward revisions to sell-side estimates.
A slowdown in cosmetics sales in recent weeks shouldn't prevent two popular beauty brands from beating 1Q expectations.
Cosmetics firms ELF and Ulta could beat top-line estimates when they report earnings next week, brokers are anticipating.
Analysts at UBS reaffirmed their Sell rating on Foot Locker, Inc. (NYSE:FL) noting that the company’s challenges are more than macro-related.
UBS also said that it has lowered its price target 27% to $22.
Walmart Inc (NYSE:WMT) has maintained its Buy rating from UBS, with the broker noting that the momentum it experienced into the end of calendar year 2022 had continued into 2023.
Following the release of its first-quarter results, UBS said in a note this week that it was increasing its price target for the retail giant to $173 from $170 as market share gains in groceries more than offset weakness in consumer discretionary categories.
Analysts at UBS have awarded Draftkings Inc (NASDAQ:DKNG) a ‘Buy’ rating with a $30 price target as the sports gambling company penetrates new markets.
Following strong first-quarter results earlier in May, the broker raised its price target for DraftKings from $19, saying expansion into new markets should fuel the company’s growth.