With third-quarter results and the United Auto Workers strike in the rear-view mirror, US automakers are in a better position than many may think, analysts at Bank of America believe.
“3Q results were mostly better than our expectations, as volumes came in stronger across geographies. Despite this, stock reactions skewed negatively with more volatility and dispersion compared to 2Q,” BofA analysts wrote in a note to clients.
Broadcom Corporation (NASDAQ:AVGO)’s recently closed acquisition of virtualization software firm VMWare offers mid-to-high-single digit percent earnings per share (EPS) accretion, according to Bank of America analysts.
In an update to clients, the analysts raised their price objective on Broadcom stock to $1200 per share from $1050, while reiterating a 'Buy’ rating, noting that VMWare can help Broadcom reduce business cyclicality and expand product offerings to key enterprise customers.
Micron Technology, Inc. (NASDAQ:MU) on Tuesday raised its first quarter fiscal 2024 revenue guidance but investors pulled back on the stock after it projected higher expenses for the period.
For the quarter ending November 30, 2023, the semiconductor company upped its revenue guidance from its prior range of $4.2 billion to $4.4 billion to approximately $4.7 million.
Zscaler Inc. (NASDAQ:ZS) delivered beat expectations on the top and bottom lines with its fiscal first-quarter results, and, while the stock hasn’t moved much, analysts at Wedbush came away impressed.
The cybersecurity company posted adjusted earnings of $0.67 per share, higher than the $0.49 per share expected by analysts. Revenue was $496.7 million, which also topped expectations of $473.4 million.
ChargePoint shares fell almost 7% on Tuesday after the stock was downgraded by UBS analysts from ‘Buy’ to ‘Neutral.’
The analysts also lowered their price target on the stock from US$9 to US$2.25.
CrowdStrike is expected to report strong year-over-year growth in both its revenue and profits on increased demand for its cybersecurity solutions amid rising threats during the third quarter.
The company is due to hand down its 3Q fiscal 2024 earnings report on Tuesday, November 28 after the market close.
2023 is proving to be the year of investment trust mergers, with two more announced today that are the fourth for trust managed by Abrdn PLC (LSE:ABDN) analysts said "make sense".
This morning, the boards of Fidelity China (FCSS) and abrdn China (ACIC) agreed merger terms, as did Troy Income & Growth and STS Global Income & Growth Trust.
easyJet PLC has done a solid job of bouncing back from the pandemic, analysts said, with the final hurdle being overcome with the reinstatement of its dividend this year.
A return to pre-tax profit of £455 million over the full year, as reported on Tuesday, marked the airline’s rebound, which analysts believe is now effectively complete on easyJet’s part.
CMC Markets is “uninvestable” at present, according to Shore Capital, which has made further ‘sharp’ cuts in its earnings forecasts led by revenue in its trading division.
In trading, lowered revenue expectations reflect both the core retail CFD business and the recent strategic pivot into institutional CFD flow.
Frasers Group PLC (LSE:FRAS) has found a fan in Barclays, which sees worries about the trend for manufacturers to go “direct to consumer” as overplayed.
In an initiation note, analysts at the bank said it expects the Sports Direct owner to emerge as one of a small circle of retailers that brands are prepared to back with high-quality products.
Shares in Marlowe PLC (AIM:MRL) fell almost 18% in early trade after the compliance software specialist effectively lowered its earnings guidance for the year.
Peel Hunt said it was reducing its EPS forecast by 6-8% for the current year to factor in lower-than-anticipated EBITDA and higher borrowing costs. Stifel followed suit, lowering its numbers by 6.4% and 11.5% respectively for financial years 2024 and '25.
Shares in Rolls-Royce Holdings PLC (LSE:RR.) rose 7% to 259.9p, their highest in four years, as the engine-maker set out new 2027 financial targets and announced plans for £1-1.5 billion of disposals over the next five years.
Chief executive Tufan Erginbilgic, who was appointed at the start of the year, said the aim was to make the group “financially stronger and more resilient”.
Greencore Group PLC (LSE:GNC) shares traded on the backfoot in Tuesday’s early deals, despite its broadly robust trading update.
The Dublin-headquartered convenience food manufacturer reported a 10% rise in revenue for its financial year ended 29 September to £1.9 billion.