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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Archive

BT, Rolls-Royce, BAE Systems: What brokers said today

Meta Platforms Inc (NASDAQ:FB)’s artificial intelligence (AI) assets are underappreciated in the stock price, analysts at the Bank of America (BoA) believe.

The analysts highlighted that the Facebook and Instagram parent company is testing more than 20 new generative AI features related to search, chat, and messaging to enhance the user experience and engagement.

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Broadcom Corporation (NASDAQ:AVGO)s artificial intelligence (AI) related sales are expected to continue accelerating in what is the early stages of a multi-$100 billion AI data center opportunity, according to Bank of America analysts.

In an update to clients, they noted that Broadcom’s AI related sales crossed $6 billion a year run rate in the fourth quarter, which offset cyclical headwinds in the enterprise server/storage areas.

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Roku Inc (NASDAQ:ROKU) has earned a price target raise from Wedbush analysts who highlighted that the company continues to beat expectations despite ongoing macroeconomic headwinds and a weak advertising business.

They upped their price target on the stock from US$100 to US$120 and repeated their ‘Outperform’ rating. Roku shares traded at about US$103 late morning on Friday.

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DocuSign shares rose more than 3% Friday morning following third-quarter results that topped expectations.

The electronic signature software company posted adjusted earnings of $0.79 per share, topping expectations of $0.63 per share. Revenue was $700.4 million, up from $645.5 million a year earlier and above Street expectations of $690 million.

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Canadian bank RBC has taken an axe to its share price target estimates for the UK housebuilding sector, with forecasts being cut across the board due to a slowing down in the number of sites being developed.

Eight of the sector's nine members had their target prices lowered with Berkeley, which had results out today, the one exception at an unchanged 4,950p.

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Lululemon Athletica (NASDAQ:LULU) reached the peak with its third-quarter results, analysts at Jefferies said as they maintained their ‘Underperform’ rating on the stock.

While the athletic apparel retailer raised its full-year guidance on the back of better-than-expected 3Q results, its 4Q revenue and earnings guidance was below market consensus.

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Reports that Ganesh Venkataramanan, the leader of Tesla Inc (NASDAQ:TSLA)'s Dojo Supercomputer effort, is no longer at the company could be a positive development for chipmaker Nvidia Corporation (NASDAQ:NVDA), analysts at Wedbush believe.

Citing sources with knowledge of the matter, Bloomberg on Thursday reported that Venkataramanan had left Tesla and the Dojo project is now being led by former Apple Inc (NASDAQ:AAPL) executive Peter Bannon.

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Bank of America has downgraded Take-Two Interactive Software Inc (NASDAQ:TTWO) to 'Neutral' from 'Buy', citing a 20% cut in their FY25 top-line forecast due to concerns about the launch date of GTA 6.

The contrarian call comes as the bank expects consensus estimates for FY25 to fall significantly before August 2024, challenging the assumption of a GTA 6 launch by March 2025.

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Tower Resources’ signing of a rig contract for the NJOM-3 well would be the catalyst for a farm-in partner to come on board and complete the required financing for the well, house broker SP Angel suggest in an initiation note.

NJOM-3 is offshore Cameroon and Tower believes there is now enough flexibility and availability in the jack-up market to contract a rig to drill the key appraisal well, which if successful, potentially unlocks a commercial development.

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Greencoat UK Wind's new management is key to maintaining confidence in its strategy going forward, says broking house Stifel.

The wind farm investor recently announced Laurence Fumagalli is to step down with Matt Ridley appointed as co-head of the investment management team.

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Imperial Brands PLC (LSE:IMB) is a standout performer in the tobacco industry, according to RBC Capital Markets, stating on Friday that it “continues to be the only company in European Tobacco to offer both dividend growth and share buybacks”.

This strategy has resonated positively in the current challenging market environment for Big Tobacco, with investors turning away from the sector due to ESG concerns.

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Deliveroo PLC (LSE:ROO) has broadened its market proposition by expanding into retail and grocery deliveries, but in doing so could ‘dilute’ its profits, according to some analysts.

Deliveroo’s focus on adding new grocery and retail verticals to its platform, following its recent investor day, could dilute its gross margin, according to Shore Capital.

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Goldman Sachs (NYSE:GS) analysts have reiterated the bank's ‘buy’ rating for BT Group PLC (LSE:BT.A), following the company’s Openreach analyst day.

Openreach is BT’s fixed broadband digital infrastructure wholesale business, representing almost half of the group’s underlying earnings (EBITDA).

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J Sainsbury PLC (LSE:SBRY) jumped 3.4% after Goldman Sachs (NYSE:GS) put the food retailer back on its 'buy' list.

Analyst Richard Edwards upgraded the FTSE 100-listed stock to ‘buy’ from ‘neutral’ and increased its share price target to 350p from 305p.

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Rolls-Royce Holdings PLC (LSE:RR.) and BAE Systems PLC (LSE:BA.) were among the defence and aerospace stocks given upgraded targets by Deutsche Bank on Friday.

On defence, the bank's analysts see geopolitical conflicts continuing to support the sector in 2024.

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