Alcoa (NYSE:AA) is expected to provide a strategy update with its results on October 18, with all options on the table as its stock price underperformance over past year is a clear message that the current approach is not working, according to Jefferies analysts.
In an update to clients, they noted that long-term value can be seen in Alcoa (NYSE:AA) shares and would be buyers at the current price, especially after significantly underperforming shares of other pure-play aluminum producers as well as major miners.
Analysts at UBS have lowered their price target on The Walt Disney Company (NYSE:DIS) stock to US$110 as they expect the company’s upcoming fourth quarter fiscal 2023 results to reflect continued pressure on the company’s Linear segment, which includes cable and broadcast channels such as ESPN, Disney Channel, Disney Junior and ABC.
They expect the company to return earnings per share (EPS) of $4.82 in fiscal 2024, down from their earlier expectation of EPS of $5.46 on continued headwinds in Linear and a higher minority interest drag from growth in international parks.
Wedbush analysts believe the tech universe is resilient and is poised for a strong earnings season ahead that will prove the doubters wrong.
"Our view is that 3Q earnings over the coming weeks will be an eye opener for the Street as the transformational AI growth and stabilizing IT spending environment will create a massive tech rally heading into year-end in which we expect tech stocks to be up another 12%-15% in 4Q," the analysts wrote.
Instacart (NASDAQ:CART) has a unique first-mover advantage over other third-party food delivery platforms and an enticing profitable economic profile, according to analysts at Oppenheimer who have initiated coverage on the recently listed stock with an ‘Outperform’ rating and US$36 price target.
Instacart (NASDAQ:CART) shares traded hands at about $24.80 at midday on Tuesday, below the stock’s debut price of $42 on September 19.
Despite Bellway PLC (LSE:BWY) reporting weaker demand trends and cost inflation squeezing its profit margins, shares in the housebuilder rose on Tuesday, with analysts continuing to recommend the shares.
Bellway's shares fell 4% in early trade but ended over 3% higher at 2,234p, down slightly over the past six months but up almost 14% since the start of the year, almost the best in the sector.
A bold move by Rolls-Royce Holdings PLC (LSE:RR.) chief executive Tufan Erginbilgic to cut up to 2,500 jobs at the manufacturing giant was well received on Tuesday morning.
Following confirmation of the sweeping headcount reduction, shares in the FTSE-100 listed firm climbed, as investors seemed to welcome the move as a major step in Erginbilgic’s transformation plan, rather than a worrying turn.
Tharisa’s decision to delay its Karo project in Zimbabwe should ultimately mean a better outcome, according to broker Peel Hunt.
“With work packages broken into smaller chunks and run in series rather than in parallel, it should also be far easier for the owners' team to maintain effective oversight on-site works.”
Dumping of utility stocks and switching to high-yielding bonds has gone too far, according to Deutsche Bank, which also sees too much negativity surrounding renewables currently.
“European utilities have underperformed by 6% year to date, reflecting concerns over rising bond yields and the outlook for renewables,” says the bank.
Moneysupermarket.com (LSE:MONY) put in a solid performance over the past three months, according to analysts at Shore Capital.
Group revenue at the comparison site for the nine months of the year so far was ahead by 14% and 12% in the third quarter, led by insurance and travel both of which were up 38% in the latest quarter.
Following the strategic reset from Frontier Developments PLC (AIM:FDEV) earlier this year, the company announced an operational review, including cutting up to 20% of costs, and reiterated its guidance for revenue for the 2024 financial year.
Costs will be cut via recruitment freezes, spending cuts and redundancies, which several analysts noted has been a recent trend among gaming industry companies.
Shares in Poolbeg Pharma PLC (AIM:POLB, OTCQB:POLBF) rose 8% in early trading after the company announced a partnership with an unnamed Nasdaq-listed biopharmaceutical firm.
The collaboration aims to develop a new drug for a metabolic condition using Poolbeg's specialised oral delivery system. Poolbeg will receive funding to create a prototype of the drug with its new partner.
Shares in Destiny Pharma PLC surged 18% in early trading following an announcement that the company will present new microbiological information on one of its lead assets, XF-73.
The read-out, set to be unveiled in a meeting with analysts and investors later today, reveals the nasal gel's effectiveness against all known antibiotic strains of Staphylococcus, including MRSA.