Levi Strauss & Co (NYSE:LEVI) (LEVI) has a “substantial long-term global growth opportunity” but slowing US consumer spending will likely make it difficult for the company to positively surprise when it reports its second quarter results on July 6, UBS analysts wrote in a note to clients.
They have a ‘Buy’ rating on shares of the denim apparel maker with a 12-month target price of $22, believing Levi's will lower its fiscal year (FY) 2023 earnings per share (EPS) guidance range by $0.05 to $1.25 to $1.35.
Warner Music Group could see long-term revenue growth from the adoption of streaming platforms thanks to its “predictable” business model, but its ability to navigate artificial intelligence is a risk.
That’s according to analysts at UBS, who initiated coverage this week on the company with a Neutral rating and a $29 price target.
Anavex Life Sciences (NASDAQ:AVXL) Corp announced earlier this week that its Rett syndrome treatment showed a disease-modifying effect in a long-term clinical trial.
On news of the results, analysts at Dawson James Securities reiterated its Buy rating for the company and its price target of $39. Shares of Anavex rose 2.7% Friday afternoon to $8.12.
Aritzia should report an earnings beat for the first quarter of fiscal 2024, according to analysts at UBS.
The analysts believe the Canadian women’s clothing retailer maintained strong momentum during the quarter and forecast the beat along with the expectation that Aritzia will raise its 2024 financial year sales guidance by about 200 basis points.
Tech stocks are forecast to gain 12% to 15% in the second half of the year led by the software and the chip sectors, according to analysts at Wedbush.
In a note to clients, the analysts also pointed to Big Tech as the “torch bearer” for the tech rally.
Apple is now a $3 trillion company.
Tim Cook and Cupertino had previously hit the mark in January 2022, but supply chain issues and a weaker macro environment pulled Apple’s value back down.
Medallion Resources Ltd (TSX-V:MDL, OTCQB:MLLOF), a junior mineral processing technology company, is addressing the environmental challenges and carbon dioxide burden associated with rare earth element processing.
Its innovative chromatography-based technology aims to provide a more efficient and environmentally friendly alternative to the current solvent extraction method.
Shares of the robotics company Symbotic Inc have more than tripled since the beginning of 2023. That growth has been great for shareholders, but analysts at UBS believe the company’s upside is increasingly limited going forward.
The firm downgraded Symbotic to Neutral from Buy and lowered its price target to $34 from $40.
UBS analysts believe Corebridge Financial, Inc (CRBG) will be able to achieve its 12% to 14% plus return on equity (ROE) target by mid-2025 through a combination of expense saves, capital return and improved spreads.
In a note to client, they initiated coverage on shares of the former AIG Life & Retirement with a ‘Buy’ rating and a 12-month target price of $22, viewing Corebridge’s higher macro sensitivity on rising credit concerns relative to peers as being more than discounted in the stock’s current valuation.
Analysts at Oppenheimer remain bullish on Alphabet Inc (NASDAQ:GOOG), Google’s parent company, despite several recent downgrades from other brokers.
In a note to clients, they stated that the recent bout of negativity around the stock was “missing the forest for the trees” with the Street's estimates already assuming a bear case for fiscal 2024.
Shareholders of Canopy Growth Corporation (TSX:WEED, NYSE:CGC) suffered another blow on Thursday as the company announced it had finalized the sale of its California cannabis facility.
The news came on the heels of a string of misfortunes for the Canadian cannabis company, which had once been regarded as a success story in the burgeoning sector.
Analysts at UBS told investors to “focus on the narrative over the noise” as they reiterated their 'Buy' recommendation for Micron Technology, the biggest US memory chip maker.
In a note to clients, UBS said the China chip ban is adding noise and could elongate Micron’s recovery, but bits are growing again, the most important metric for the stock as it leads everything in the company’s bottom line.
Eli Lilly and Co (NYSE:LLY) shares are up again Thursday as its weight loss drug retatrutide continues to garner attention from investors and analysts alike.
UBS reiterated its Buy rating and $498 price target for the company following the results of a Phase 2 trial which found that patients treated with injectible retatrutide saw a median weight loss of 58 pounds, or 24.2%, after 48 weeks.
Analysts at Oppenheimer have raised their price target for Netflix Inc (NASDAQ:NFLX) stock in anticipation of a higher subscriber count on bullish indicators for the streamer’s “paid sharing” rollout and increased revenue per subscriber with the potential discontinuation of its lowest-priced ad-free plan, which is currently being tested in Canada.
“Plan shift from lowest-priced ad-free tier is the obvious next step, unlocking about $15.50 revenue/subscription (advertising plus subscription) versus $9.99 (ad-free) and $6.99 ad-plan unlocking about $4.4 billion in annual revenue or 13% of '23E revenue,” analysts wrote in a note.
The Russell 2000 small-cap index could outperform the S&P 500 over the next 12 months, according to analysts at Goldman Sachs (NYSE:GS).
In a report published Wednesday, Goldman analysts wrote that the Russell 2000 should gain 14% over the next year while projecting a 9% gain for the S&P 500 for the same period.
Shore Capital expressed optimism about the progress of Destiny Pharma PLC (AIM:DEST, OTC:DTTYF)'s XF-73 Nasal, an anti-infective designed to reduce nasal carriage of Staphylococcus aureus and prevent post-surgical infections.
The corporate broker noted that a commercial partnership to develop the breakthrough gel would mark a significant de-risking event for the UK-based biotech firm.
While investors were already anticipating a miss and guidance revision for Walgreens Boots Alliance Inc (NASDAQ:WBA)’s third-quarter 2023, the results and revision came in even worse than expectations, UBS analysts wrote in a note to clients.
The company blamed consumer and category conditions, lower COVID-19 contribution, and a more cautious macroeconomic view.
Apple Inc (NASDAQ:AAPL) is on the cusp of reentering the exclusive $3 trillion market capitalisation club this week.
This would be the second time for the tech giant since it first crossed the threshold in January 2022, despite navigating numerous challenges including disruptions in the China supply chain and a softer macroeconomic environment over the past 18 months.
There is “meaningful upside” in Carnival Corporation (NYSE:CCL)’s guidance for 50% plus growth, UBS analysts wrote in a note to clients.
They have a ‘Buy’ rating on shares of the world's largest cruise operator with a 12-month target price of $12, both of which, however, are under review.
The path to market for Pfizer’s drug danuglipron (danu) for obesity and type 2 diabetes looks “extremely challenging” as its development lags one to two years behind its top competitors, analysts at UBS believe.
They shared this view in a note to clients following Pfizer’s announcement that it has chosen to advance danu and terminate its lotiglipron (loti) program for these two indications based on data from a Phase 1 drug-drug interaction study and an ongoing Phase 2 trial in obesity and type 2 diabetes.
IBM Corp’s recently-announced acquisition of Apptio Inc for $4.6 billion is “a bit pricey” relative to public small-cap software valuations, UBS analysts wrote in a note to clients.
They have a ‘Sell’ rating on shares of IBM with a 12-month target price of US$110 per share.
The current artificial intelligence (AI) “gold rush” combined with stabilizing demand is a “green light” for owning tech stocks, Wedbush Securities analysts wrote in a note to clients.
They believe AI has changed the tech world and investor sentiment, with the transformational technology being a “1995 internet Moment... NOT a 1999 Dot.Bubble Moment”.
Analysts at UBS have raised their price target for Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, on their view that the tech giant will be an artificial intelligence (AI) winner.
“We expect Meta to integrate generative AI (GenAI) broadly into its apps and increasingly be viewed as an AI winner, providing another leg to the bull case,” the analysts wrote.
Tesla stock has been downgraded by yet another broker after three downgrades last week.
Goldman Sachs (NYSE:GS) on Sunday downgraded Tesla from ‘Buy’ to ‘Neutral’ citing concerns around the recent rally in Tesla’s share price and the challenging pricing environment for new cars.
Jersey Oil and Gas PLC (AIM:JOG, OTC:JYOGF)'s successful farm-out of a 50% farm-out share of its Greater Buchan Area (GBA) licences to NEO Energy is indicative of management's dealmaking prowess and the quality of the asset.
That, at least, is the conclusion of finnCap, which update its research on the North Sea explorer. The broker said the move clears the way for JOG to seek further farm-out agreements in pursuit of retaining a 20-25% fully carried interest in the development.
UBS analysts have downgraded Alphabet Inc (NASDAQ:GOOG) shares to ‘Neutral’ from ‘Buy’, but have increased their target price on the stock to $132 per share from $123, on “limited upside and near-term monetization risk”.
They also see medium-term revenue risk from new search (SGE) displacing ad inventory with generative artificial intelligence (GenAI) responses, which may take time to optimize, and operating margin expansion from efficiency efforts that could be offset by a GenAI-driven investment cycle.
GSK PLC (LSE:GSK, NYSE:GSK)'s settlement with a California plaintiff over an alleged link between Zantac and cancer "clears 80%+ of the liability overhang", according to Jefferies.
However, the US investment bank said that a risk "persists" because there are still other Zantac lawsuits pending.