A combination of low current valuations and a healthy economic outlook indicates that the Russell 2000 small-cap index should return roughly 9% in the next 6 months and 15% in the next 12 months, as compared with a 7% gain for the large-cap S&P 500, Goldman Sachs (NYSE:GS) analysts believe.
In a portfolio strategy research update, the analysts also noted that despite its recent rally the Russell 2000 remains nearly 20% below the high reached in November 2021.
Amazon.com Inc (NASDAQ:AMZN, ETR:AMZ)’s Amazon Web Services (AWS) growth acceleration and greater visibility on Cloud AI revenues are expected to be key positives for the company in 2024, Bank of America analysts asserted.
In an update to clients, the analysts raised their price objective on Amazon stock to $185 per share from $168, noting that 2024 should see more retail margin upside for the eCommerce giant, aided by Prime Video ads, while AWS revenue growth that is expected to reach 17% by the third quarter should close the gap to its peers.
Google’s decision to cut hundreds of augmented reality (AR) hardware and voice assistant jobs could be part of a restructuring in favor of additional AI efforts, according to analysts at Wedbush.
“Multiple news sources are reporting Google is cutting employees across a variety of areas in large part to enable higher spending levels around AI,” the analysts wrote.
Pennon Group PLC (LSE:PNN, OTC:PEGRY)’s takeover of Sutton and East Surrey Water is “compelling” given the attractive premium paid for the supplier, UBS analysts have said.
South West Water-owner Pennon announced the £89 million acquisition on Wednesday, which combined with SES’s net debt saw a total enterprise value of £380 million.
Diageo PLC (LSE:DGE), the spirits company, has been downgraded from a ‘buy’ to ‘neutral’ by analysts at the Bank of America.
The US bank expects the beverage sector to face a tough 2024 due to suppressed consumer spend on both sides of the Atlantic, foreign exchange headwinds and the risk of tariffs on Cognac in China.
easyJet PLC has received a double upgrade from analysts at Bank of America, who see bigger capacity, stable fuel costs and more people going on holiday as a winning trio.
'Buy', from 'underperform', is the bank’s new view after it raised its profit forecast for this year by 14% to £549 million, with load factors (plane occupancy) estimated to be 1 percentage point higher than previously on average.
Rolls-Royce Holdings PLC (LSE:RR.) should report collective flight times of its engines at the top end of guidance this year, according to Bank of America analysts.
This would see Rolls-Royce engine flight times at roughly 87% of pre-2019 levels, marking a boost given the FTSE 100-listed manufacturer is paid partially based on how much its power units are used.
The Sage Group PLC (LSE:SGE), the accounting software group, is expected to report £572 million in sales for the first quarter of 2024 on Thursday, according to UBS analysts.
This would represent a 10.1% organic increase in sales, but less than the 10.6% growth it recorded in the fourth quarter of 2023, due to foreign currency exchange adjustments, the analysts said.
AFC Energy PLC (AIM:AFC, OTC:AFGYF) comes first in a list of top stocks in the smaller cap market compiled by analysts at stockbroker Peel Hunt, after the company initiated the commercialisation of its hydrogen-powered generators.
Few hydrogen power generator producers have commercialised at scale, largely due to the nascency of the market and historically high industrial costs.