CFRA Keeps Hold Opinion On Shares Of Raymond James Financial, Inc.

/ / Financials /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our target price by $15 to $125 on a forward P/E of 13.0x our FY 2024 (Sep.) EPS estimate, a slight discount to RJF’s 10-year average (13.8x) as net interest income (NII) headwinds partially offset our expected investment banking (IB) recovery. We raise our FY 2024 EPS by $0.05 to $9.61 and FY 2025’s by $0.16 to $10.14. RJF reported FQ2 adjusted EPS of $2.31 vs. $2.03, in line with consensus. Revenues rose 9% Y/Y, driven by Asset Management (+17% Y/Y), Capital Markets (CM, +14% Y/Y), and Private Client Group (PCG, +9% Y/Y), partially offset by RJ Bank (RJB, -22% Y/Y). PCG benefited from equity market tailwinds with AUM rising to $1.39T vs. $1.17T Y/Y. CM results were a bit weaker than we expected, as […]

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CFRA Keeps Hold Opinion On Shares Of General Dynamics Corporation

/ / Industrials /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target price of $290, up $15, reflects a 17.5x multiple of projected 2025 EPS, slightly above GD’s historical forward average. We think a modest premium is reasonable given what should be an improving operating margin environment. We cut our 2024 EPS estimate by $0.06 to $14.61 and 2025’s by $0.04 to $16.59. Q1 EPS of $2.88 vs. $2.64 missed the consensus view by $0.06. Operating margins of 9.7% rose 20 basis points vs. the year-ago quarter and backlog rose 4% from year-end 2023. There is light at the end of the tunnel for the G700, which obtained certification in late Q1, but too late to make any deliveries in Q1. Nonetheless, GD is maintaining its guidance of 50-52 G700 deliveries in 2024. On a positive

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Ford Q1 Beat Driven by Pro Volume Growth, Lower Model E Losses, BofA Says

/ / Consumer Discretionary /

Ford’s (F) Q1 beat was driven by solid volume growth in the company’s Pro segment as well as lower losses in Model E, BofA Securities said in a note to clients on Thursday. However, Blue “partially worked as an offset due to the timing of 60K F-150s held in inventory,” the investment firm said. The carmaker reported Q1 adjusted earnings Wednesday of $0.49 per diluted share, down from $0.63 a year earlier. Analysts surveyed by Capital IQ expected $0.44. Revenue for the quarter was $42.78 billion, up from $41.47 billion a year earlier. Analysts expected $41.47 billion. The company’s management “painted a positive picture for Ford as strength in its core truck market continues. Demand for Pro remains high and, in the priority pecking order, it sits atop when resources are allocated,” BofA said. “New Pro products are expected to launch in 2H in Europe, which may impact volumes in

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ServiceNow Q1 Results ‘Relatively Uneventful,’ Morgan Stanley Says

/ / Technology /

ServiceNow (NOW) posted “relatively uneventful” Q1 results, with the company’s upcoming analyst day and the potential for better current remaining performance obligations, or cRPO, growth in the second half of the year seen as its next catalysts, Morgan Stanley said Thursday. Late Wednesday, the company reported Q1 constant-currency cRPO growth of 21%, which Morgan Stanley said was 100 basis points better than outlook. ServiceNow’s Q2 constant-currency cRPO growth guidance of roughly 21% topped the consensus for 20% increase, the brokerage said. Morgan Stanley raised its price target on the ServiceNow stock to $830 from $814. The firm maintained its overweight rating on the stock, with the company’s potential next catalysts being its May 6 analyst day and second-half results, “where we see more upside to estimates and the potential for better [constant-currency] cRPO growth,” according to the note. The company’s shares were down over 5% in recent trading.

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Boeing Investors ‘Highly Disappointed’ by Recent Setbacks, BofA Securities Says

/ / Industrials /

Boeing (BA) shares hit a 52-week low Wednesday as investors were “highly disappointed” by recent setbacks such as issues with the 787 production line and the rating downgrade by Moody’s, BofA Securities said in a note Thursday. The company’s plan to fund the potential Spirit AeroSystems acquisition through an equity offering and possible backing of an internal replacement for the chief executive contrary to market preference for an outsider exacerbated investor sentiment, according to the note. The firm said Boeing brought back the equity funding option to preserve its investment credit rating. The company’s Chief Executive David Calhoun actively backed Stephanie Pope as his successor, with several candidates in the mix including David Gitlin, the note added. BofA analysts said they expect the succession process and subsequent election of a new chief executive to add significant uncertainty to Boeing in the near term. BofA Securities cut its price target on

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Caterpillar (CAT) Q1 2024 Earnings Conference

/ / Industrials /

The following is a summary of the Caterpillar Inc. (CAT) Q1 2024 Earnings Call Transcript: Financial Performance: Caterpillar reported flat Q1 sales and revenues of $15.8 billion compared to last year. Adjusted operating profit increased by 5% to $3.5 billion. The company announced record adjusted profit per share at $5.60, an increase of 14%. Generated a free cash flow of $1.3 billion for the quarter. Notable increase in the backlog, with a value at $27.9 billion, up $400 million from the previous quarter. Performance was fueled by record deployment of $5.1 billion cash for share repurchases and dividends. Business Progress: Most end markets exhibited healthy demand for Caterpillar’s products and services. Anticipates a revenue increase in the Energy & Transportation business line, offset slightly by a softened European market in Construction Industries. The company forecasted the adjusted operating profit margin and ME&T free cash flow for 2024 to be in

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Meta Platforms’ AI Investments Likely to Drive More Durable Growth, Morgan Stanley Says

/ / Technology /

Meta Platforms’ (META) accelerated artificial intelligence investments are expected to drive more durable engagement and revenue growth, Morgan Stanley said in a note to clients Thursday. The company said late Wednesday that it expects full-year 2024 capital expenditures to be in the range of $35 billion to $40 billion, compared with $30 billion to $37 billion previously, as it continues to accelerate its AI infrastructure investments. “We agree with higher investment to come as Meta continues to accelerate AI infrastructure investments for more durable engagement and revenue growth,” Morgan Stanley said. The $39 billion top end of Meta’s Q2 revenue guidance was 1% ahead of Morgan Stanley’s expectations and the company’s Q1 revenue of $36.5 billion was also roughly in line with the firm’s forecast, according to the note. Morgan Stanley maintained its overweight rating and $550 price target on Meta. Meta’s shares were down 11.7% in recent trading Thursday.

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Comcast (CMCSA) Q1 2024 Earnings Conference

/ / Telecommunications /

The following is a summary of the Comcast (CMCSA) Q1 2024 Earnings Call Transcript: Financial Performance: Comcast reported Q1 revenue of $30.1 billion, a 1% increase with consistent EBITDA at $9.4 billion. Adjusted EPS saw a 14% growth, boosted by a roughly 6% reduction in share count over the last year. The company generated impressive free cash flow of $4.5 billion in the quarter, and $3.6 billion were returned to shareholders. The residential broadband sector contributed heavily to the growth with revenue surging over 4%, driving total revenue in this area to over $6.5 billion. Business Progress: The company remains focused on its six major growth drivers, including residential broadband, wireless, business services, theme parks, studios, and streaming. Broadband usage among customers is on the rise with increased speed tier subscriptions and increased investment in the multi-gig internet. Subscriber base reports show more than 70% of customers are on speed

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Chipotle Q1 Results to Outshine Peers Due to Strong Sales, Margin Improvement, Deutsche Bank Says

/ / Consumer Discretionary /

Chipotle Mexican Grill (CMG) investors should be pleased with the Q1 results as it is expected to be among the strongest in the restaurant industry, Deutsche Bank said in a note Thursday. The company surpassed expectations with increased customer traffic driving strong same-store sales and improved restaurant-level margins, the note added. The company increased its full-year sales guidance due to continued momentum in April, Deutsche Bank said. The firms said Chipotle’s innovation and marketing plans combined with increased efforts on personalized offerings will support multi-year benefits. Deutsche Bank reiterated its buy rating on the company’s stock with a price target of $3,600. Chipotle shares were up 6% in recent trading.

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S&P Global (SPGI) Q1 2024 Earnings Conference

/ / Financials /

The following is a summary of the S&P Global Inc. (SPGI) Q1 2024 Earnings Call Transcript: Financial Performance: S&P Global reported an overall revenue increase of 14% to nearly $3.5 billion in Q1, setting an all-time quarterly revenue high. Adjusted earnings per share also experienced significant growth, up by 27% to $4.01. Subscription revenue saw an 8% YoY growth, contributing significantly to the total company revenue, and was driven by the transaction revenue from the Ratings Division. A high figure for billed issuance of almost $1 trillion was achieved in Q1, an increase of 45% YoY. Full-year revenue growth is predicted to fall within a 6% to 8% range. Business Progress: S&P Global is prioritizing advancements in artificial intelligence, launching customer interaction tools, and looking at improving productivity through new tools such as S&P SPARK Assist. The company reported substantial progress with financial synergies, already achieving $56 million in revenue

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CFRA Upgrades Rating On Shares Of Spotify Technology S.a. To Buy From Hold

/ / Consumer Discretionary /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We think the current share price is an attractive entry point to buy SPOT with the shares pulling back from this week’s high. Our target price is $325 using a forward P/E of 67.0x our 2024 earnings estimate, below the five-year historic average of 78.0x. On April 23, we increased our 2024 EPS estimate to EUR4.85 from EUR2.40 and 2025’s to EUR6.30 from EUR3.95 per share. We think SPOT can grow profitably with higher unit volumes and widening margins. Our revenue forecast is EUR15.8B in 2024 and EUR17.6B in 2025 vs. EUR13.2B in 2023. Gross margins ended Q1 2024 at 27.6%, +90 bps Q/Q, with more cost discipline and one-time restructuring charges. We see 2024 gross margins at 28.0%-29.5%. We like the music streaming market’s attractive growth

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CFRA Maintains Buy View On Shares Of Chipotle Mexican Grill, Inc.

/ / Consumer Discretionary /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lift our 12-month target to $3,700 from $2,930, 66.0x our 2024 EPS, a premium to CMG’s five-year average forward P/E, reflecting CMG’s outsized growth relative to peers. We raise our 2024 EPS to $56.04 from $54.12 and 2025’s to $66.35 from $65.10. CMG posted Q1 adj-EPS of $13.37, $1.69 above consensus. Revenue of $2,702M (+14.1% Y/Y) was $31M above consensus. Operating income rose 20.0% Y/Y to $441M vs. the $412M consensus, with the margin widening 80 bps Y/Y to 16.3%. Comp sales rose 7.0% vs. the 5.3% consensus, driven by transactions growth (~5.5%) and higher menu pricing (~2.8%), partially offset by negative mix and check. CMG raised its 2024 comp sales guidance to the mid- to high-single-digit range as staffing, scheduling, and execution of its “four

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