Tech stocks should rise 20% plus in 2024 as the tech sector is set up for an acceleration of spending around cloud and AI that is still being significantly underestimated by Wall Street, according to Wedbush analysts.
In an update to clients, the analysts noted that they believe cloud and AI driven spending will be up 20%-25% over the next year and think "a short covering for the ages" for the tech sector into year-end is well underway.
Adobe Inc (NASDAQ:ADBE) has a history of providing conservative guidance for the new fiscal year, analysts at Jefferies highlighted after the creative software provider’s 2024 outlook disappointed investors earlier this week.
“Expectations were high going in [to earnings] with the stock up 85% year to date and generative AI momentum building, combined with new 6% to 10% price increases,” the analysts noted.
Naked Wine's interims had several positives, says broker Jeffries, notably the all-time low in repeat customer attrition and early indications that improvements to the new customer proposition are working.
A reiteration of 2024 guidance and an upbeat tone on the shift to cash generation, with a £40m-50m anticipated inflow from inventory by the end of 2025, also were good signs said the broker.
Meetings with the chief financial officers of Microsoft Corporation (NASDAQ:MSFT)’s business units left Bank of America analysts with a higher conviction on the durability of growth in the company’s core Office and Azure franchises.
In an update to clients, the analysts increased their price objective on Microsoft stock to $430 per share from $415, while reiterating their ‘Buy’ rating, to reflect their belief in the durability of growth of the company’s cloud and AI offerings.
Jefferies analysts are questioning whether Etsy (NASDAQ:ETSY)’s recent restructuring move is enough to respond to ongoing challenges in 2024.
Etsy (NASDAQ:ETSY) initiated its first restructuring in six years, aiming to cut 11% of its core workforce (225 employees) and complete a full reorganization by the end of the first quarter of 2024.
bluebird bio Inc (NASDAQ:BLUE) shares took off on Thursday after the biotechnology company provided positive patient start guidance for the new year and revealed a commercial agreement with a US payer that provides coverage to 100 million patients for its recent Food and Drug Administration (FDA)-approved sickle cell therapy Lyfgenia.
In a regulatory filing, bluebird said it expects to see 85 to 105 patients initiate the treatment process across its three approved cell therapies Lyfgenia, Zynteglo, and Skysona in 2024.
Palo Alto Networks Inc (NYSE:PANW)’s cloud transformation is well underway, and the company is becoming the dominant cybersecurity sector player as larger more strategic deals are being signed heading into 2024, according to Wedbush analysts.
In an update to clients, the analysts raised their target price on PANW stock to $350 from $290, while maintaining an ‘Outperform’ rating, citing strong cybersecurity sector and cloud deal momentum heading into 2024.
Moderna Therapeutics Inc (NASDAQ:MRNA) revealed positive data from its second cut of the cancer vaccine for adjuvant melanoma in combination with Keytruda.
The report indicates a 49% recurrence-free survival (RFS) benefit, an improvement from the previous 44%.
Next year will be a transition period for European banks as the sector moves to a lower interest rate environment, according to analysts at Goldman Sachs (NYSE:GS).
The current environment is characterised by flattish net interest income (NII), higher fees, manageable operating expenses (opex), and credit costs, the analysts said.
Tesla Inc (NASDAQ:TSLA) shares dropped on Wednesday in response to its decision to recall over two million vehicles due to Autopilot issues, but the move is a “small step in the right direction,” according to Wedbush’s Dan Ives.
The automaker was forced to recall the vehicles equipped with its Autopilot advanced driver-assistance system in the US after a longstanding investigation by the National Highway Traffic Safety Administration (NHTSA), and despite Tesla's disagreement with the NHTSA's analysis on the matter.
Tharisa PLC (LSE:THS, JSE:THA, OTC:TIHRF)’s underlying earnings fell slightly short of Peel Hunt's estimation of US$140 million, though analysts retained the platinum miner’s 'buy' rating with a 195p price target.
The minor discrepancy is attributed to lower cash operating costs, which could not entirely offset the marginally reduced realised pricing.
Shield Therapeutics PLC (AIM:STX, OTCQX:SHIEF)'s third-quarter trading update for Accrufer in the US market shows its tie-up with Viatris and expanded sales team are “bearing fruit”, according to analysts.
Accrufer is a non-salt based oral therapy used to treat iron deficiency in adults.
The Federal Reserve is expected to hold interest rates steady at 5.25% to 5.5% following its December meeting, with Bank of America analysts seeing the central bank’s hiking cycle as over.
The analysts believe the bulk of economic data released since the Fed’s last meeting in November has pointed to a moderation in economic activity, disinflation and a cooling labor market.
Liberum has reiterated its 'buy' rating on Atlantic Lithium Ltd (AIM:ALL, OTCQX:ALLIF, ASX:A11) stock after the group unveiled a maiden JORC 2012-compliant feldspar resource estimate at its Ewoyaa spodumene lithium project in Ghana.
The estimate stands at 15.7 million tonnes at a concentration of 40.2% feldspar.
Micron Technology, Inc. (NASDAQ:MU) is expected to hand down strong guidance when it reports its fiscal first quarter financial results on Wednesday, December 20, 2023, analysts at UBS believe.
Ahead of Micron’s report, the analysts awarded the stock a ‘Buy’ rating and raised their price target from US$76 to US$90.
Oracle Corporation (NYSE:ORCL) and its Software-as-a-Service unit is too reliant on existing customer migrations, according to Jefferies analysts.
Despite expectations for a rebound in the second quarter following a seasonally weak first quarter, Oracle reported disappointing results with revenue coming in at $12.9 billion, a 4% year-over-year increase but falling short of the Street's estimate of $13.1 billion.
Crocs, Inc. (NASDAQ:CROX)’s core business has strong momentum as the worst of its HEYDUDE brand issues are priced into the stock, according to Bank of America analysts.
In a note to clients, the analysts initiated coverage of Crocs stock with a ‘Buy’ rating and a $128 per share price objective, implying potential upside of 22% from current levels.
Century Lithium Corp. (TSX-V:LCE, OTCQX:CYDVF) has earned an ‘Outperform’ rating from analysts at Noble who believe the lithium exploration company’s stock price can grow by about 645%.
They gave the stock, which is currently trading hands at C$0.53, a C$3.95 price target based on a discounted cash flow analysis.
Steppe Gold Ltd (TSX:STGO, OTCQX:STPGF)’s ATO gold mine in Mongolia is expected to generate total gross revenue of $2.2 billion, based on an updated technical report, according to Stonegate Capital Partners analysts.
In an update to clients, the analysts placed a valuation range of C$4.43 to C$5.59 per share on Steppe Gold stock, with a mid-point of C$5, based on separate discounted cash flow (DCF) analysis of their mine models for the company.
Google has been found guilty of antitrust violations regarding its Play mobile app store in a unanimous decision by a San Francisco jury, marking a “potential turning point” for video game producers, analysts at Jefferies wrote.
The case, brought by Epic Games in 2020, accused the Alphabet Inc (NASDAQ:GOOG)-owned company of implementing restrictive practices that stifled competition in the mobile app market.
Logitech International SA (USA) (NASDAQ:LOGI) has earned a price target raise from Wedbush analysts on an “encouraging introduction” from new CEO Hanneke Faber and improving PC sales.
Faber joined the computer maker as its CEO on December 1 after previous chief Bracken Darrell left the company in June.
Analysts at Jefferies have upgraded Best Buy Co Inc (NYSE:BBY) to ‘Buy’ from 'Hold', citing an expected improvement in demand as the replacement cycle for consumer electronics bought during the pandemic gets closer and rising consumer interest in artificial intelligence (AI) adds a “cherry on top.”
“'24 won't be a banner year,” but investor expectations for negative mid-single digit declines in comparable sales are conservative given double-digit and high single-digit declines in 2022 and 2023, respectively, the analysts wrote in a client note.
bluebird bio Inc (NASDAQ:BLUE) may have secured FDA approval for its sickle cell disease cell therapy, Lyfgenia, but market reaction has been mixed.
Despite the FDA greenlight, BLUE shares experienced a sell-off, driven by concerns over pricing and label dynamics.
Apple Inc (NASDAQ:AAPL) could become the world’s first company to reach a market capitalisation of US$4 trillion by late next year, according to analysts.
Expectations of resilient demand in America and China, as hundreds of millions of iPhones are upgraded, should buoy the stock, Wedbush analysts said.