Road Calls of the Week By Investing.com | Inventory Information
Investing.com — Right here is your Professional Recap of the highest takeaways from Wall Road analysts for the previous week.
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Monday- US Markets Closed for Martin Luther King Jr. Day
Apple
What occurred? On Tuesday, Jefferies downgraded Apple Inc (NASDAQ:) to Underperform with a $200.75 price goal.
*TLDR: Jefferies downgrades Apple on weak iPhone gross sales. AI outlook and growth targets missed.
What’s the total story? Jefferies lowers forecasts as a result of weak iPhone gross sales and the final shopper electronics market, citing a lowered outlook for iPhone 17/18 as a result of slower AI uptake and commercialization.
Jefferies expects Apple to overlook its income growth steerage of 5% for the primary quarter of fiscal yr 2025 and to information to solely low single-digit income growth within the second quarter, additionally beneath consensus.
The AI outlook stays subdued, with industry checks suggesting delays in Apple’s superior packaging roadmap for iPhone as one other adverse signal. Jefferies’ new price goal implies a 13% draw back, resulting in this downgrade.
Ford
What occurred? On Wednesday, Barclays (LON:) downgraded Ford Motor Firm (NYSE:) to Equal-weight with an $11 price goal.
*TLDR: Barclays downgrades Ford as a result of 2025 headwinds. Unsure price enchancment paths anticipated.
What’s the total story? Barclays analysts acknowledge Ford’s ongoing transformation efforts, however anticipate important quantity headwinds in 2025, pushed by stock destocking and modest price normalization, which can negatively impression earnings estimates.
Whereas price discount has potential, with alternatives to slim the fee hole in comparison with rivals, Barclays highlights the uncertainty surrounding the trail to price enchancment. The Tier 1 desk’s 2025 EPS estimate of $1.44 falls beneath Bloomberg’s consensus of $1.63, reflecting their cautious outlook on Ford’s earnings profile.
Veeva Techniques
What occurred? On Thursday, Goldman Sachs double downgraded Veeva Techniques Inc (NYSE:) (NYSE:) to Promote with a $261 price goal.
*TLDR: Goldman views Veeva as entrenched however faces competitors and gradual restoration. Veeva’s underperformance anticipated relative to different protection.
What’s the total story? Goldman continues to view Veeva as deeply entrenched in its core Life Sciences buyer base, with important cross-selling potential over the subsequent decade. Nonetheless, the worldwide investment bank identifies a number of medium-term dangers to Veeva’s 2030 targets. These embrace competitors from Salesforce (NYSE:) within the Business sector, which is predicted to be a persistent headwind, and a gradual elementary restoration within the Life Sciences vertical, more likely to impression buyer enlargement and renewal offers.
Moreover, Veeva’s maturing product portfolio could pose challenges for newer product cycles to drive substantial growth.
Goldman initiatives that Veeva will underperform relative to different protection over the subsequent 12 months, regardless of restricted absolute draw back risk given its free money circulation help and a number of quarters of underperformance. The bank is more cautious on medium-term fundamentals, and its revised price goal implies a 13% draw back risk in comparison with an average 11% upside for its Purchase and Impartial-rated names.
Twilio
What occurred? On Friday, Baird upgraded Twilio Inc (NYSE:) to Outperform with a $160 price goal.
*TLDR: Baird bullish on TWLO’s income and valuation. Profitability, beneficial properties, and capital returns anticipated to rise.
What’s the total story? Thursday, Baird attended TWLO’s investor day, buoyed by a pre-released This fall upside and broad-based energy. The brokerage emerged more assured in TWLO’s capability to maintain double-digit income growth, anticipating additional upside to steerage and estimates.
Acknowledging latest beneficial properties they’d been cautious to chase, Baird now expects a potential beat-and-raise sample to drive shares increased, particularly with bettering profitability, money circulation, and capital returns. Valuation remains to be deemed cheap, significantly given potential upside eventualities.
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