Rolls-Royce Stock Should Rise Another 50%, BofA Analyst Says
Bank of America gave Rolls-Royce Holdings Plc a price target that suggests the stock could rally another 50%, even after the British jet-engine maker's valuation doubled in the past year.
Analyst Benjamin Heelan lifted his price target to 1,150 pence from 830 pence — far higher than any of the other 20 analyst targets tracked by Bloomberg. The company's shares gained as much as 3.1% to 754.00 pence apiece on Friday.
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Business Insider
23 minutes ago
- Business Insider
Dangote's $20B refinery sources U.S. crude, raising questions on Nigeria's output
The Dangote refinery, the largest crude processing facility in Africa, has been importing significant quantities of U.S. crude WTI, highlighting an apparent inconsistency given Nigeria's status as Africa's top oil producer. Africa's largest refinery, Dangote, imports significant quantities of U.S. crude, despite Nigeria being Africa's top oil producer. The refinery processes U.S. West Texas Intermediate (WTI) Midland crude for its technical advantages, such as higher yields and gasoline blending improvements. Current Nigerian crude production capacity cannot fully supply the refinery's needs, leading to a reliance on imports. Following a prolonged back-and-forth between Nigeria's national petroleum company, the Dangote $20 billion refinery, with a capacity of 650,000 barrels per day (bpd), has turned to the US crude oil market in 2025, sourcing West Texas Intermediate (WTI) Midland crude, a Bloomberg's ship tracking data noted. The refinery's intake of American crude has risen to roughly one-third, almost double the proportion seen during its 2024 startup phase. More notably, the surge in U.S. crude imports persists despite Nigeria's status as Africa's top crude oil producer and key OPEC member. However, the country's crude production capacity is limited, and it struggles to meet the Dangote refinery's needs and broader national demands. Critics argue that the factors behind Dangote's crude reroute stem from concerns over logistics and technicalities. According to Randy Hurburun, senior refinery analyst at Energy Aspects, technical advantages play a key role. WTI Midland offers higher yields of reformate and improved gasoline blending characteristics. Additionally, the shift is a consequence of the recent downturn in Asian demand for U.S. crude, driven in part by ongoing U.S.-China trade tensions, which has made more Midland oil available on the global market. As a further consequence, the refinery's ramp-up has led to a tightening of Nigerian crudes, a Dangote spokesperson confirmed, noting that June's crude intake will likely include an even higher share of U.S. supply. Bloomberg added that the event would allow U.S. crude to gain a larger share of Dangote's imports compared to Nigerian crude. Dangote refinery's refining capacity The Dangote Refinery, situated in the Lekki Free Zone near Lagos, Nigeria, has a designed processing capacity of 650,000 barrels of crude oil per day (bpd), making it Africa's largest oil refinery and the world's largest single-train facility. The refinery, located near Lagos, began producing diesel and naphtha in early 2024, with gasoline output commencing in September. As of early 2025, the refinery was operating at approximately 85% capacity, processing around 550,000 bpd. To meet its crude requirements, the refinery has been importing significant quantities of U.S. West Texas Intermediate (WTI) crude oil. In June 2025, it booked approximately 300,000 bpd of WTI, and in July, it planned to import at least 5 million barrels, equating to about 161,000 bpd Once fully operational, it is projected to meet Nigeria's entire domestic demand for refined petroleum products while generating surpluses for export across Africa and beyond. The image of Nigeria, a nation rich in oil, importing crude may seem ironic, but the Dangote refinery's sourcing strategy highlights broader challenges in the country's upstream sector, including underinvestment, theft, and operational inefficiencies. In contrast, the U.S. shale sector remains agile and export-oriented, with competitive grades like WTI Midland offering technical and economic advantages for large-scale processors. As Nigeria continues to reform its petroleum sector and attract new upstream investment, the success of the Dangote refinery could mark a turning point in reducing dependence on imported fuels – albeit fueled, for now, by American crude.
Business Insider
2 hours ago
- Business Insider
Stocks are on the verge of flashing 2 big sell signals as investors pile into the market at a historic pace, BofA says
Things have been good for stocks over the last two months. Maybe too good, according to a new report from Bank of America. Since its most recent low on April 8, the S&P 500 and Vanguard's Total World Stock Index are up 20% as investors have piled into the market at a near-record pace. On an annualized basis, 2025 has seen the second-highest inflows into global stocks ever, trailing only 2024, BofA's Chief Investment Strategist Michael Hartnett said in a client note Friday. For US stocks, it's the third-highest year ever, after 2024 and 2021. Yet, amid the bullish frenzy, Hartnett said global stocks are approaching two sell signals. The first is the amount of money flowing into global stock funds. If they hit 1% of their current assets under management within a four-week span, the sell signal is activated. Over the last four weeks, flows totaled 0.9% of the funds' AUM. To hit 1%, flows would have to hit $30 billion in the "coming weeks," Hartnett said. The second is a breadth indicator that says when 88% of the ACWI countries' indexes trade above both their 50-day and 200-day moving averages, it's a sign that things are frothy and investors should sell, Hartnett said. Currently, 84% of ACWI countries' indexes are higher than their moving averages, meaning the market is in "overbought territory," Hartnett said. Both of Hartnett's sell indicators are in line with the conventional wisdom of contrarian investing espoused by legends like Warren Buffett. When the market is overwhelmingly bullish, good news is already priced in. When investors are bearish, it's an opportunity to buy stocks at a discount, the thinking goes. But sentiment gauges have sent mixed signals over the last couple of months. While inflows are strong, the AAII Investor Sentiment Survey shows investors are still net bearish. Bank of America's own Bull/Bear indicator shows the market's aggregate attitude hovers somewhere between optimism and pessimism, with a slight tilt toward the former. Breadth indicators are broadly in line with Hartnett's measure. Stocks of all stripes are doing well. Like Hartnett, Liz Ann Sonders, the chief investment strategist at Charles Schwab, said in a May 27 report that the robust breadth levels could be a cause for concern in the near-term. "Early-April setup was ripe for rally on good news given washed out sentiment/breadth and deeply oversold market," she wrote in a note co-authored with Kevin Gordon, a senior strategist at Schwab. "Setup now is not at opposite extreme." While breadth and sentiment can be contrarian indicators, it should be noted that the momentum factor has been king over the last decade and a half. What has done well (mega-cap tech stocks and popular indexes) has continued to do well, and steep declines in the broader market have generally been short-lived. That could still be the case going forward. Beyond technical indicators, investors are also monitoring fundamental measures of the economy's health. The macroeconomic picture remains unclear as business owners and consumers digest President Trump's tariffs. Concerns persist about how the import taxes will affect consumer prices and growth. The US economy added 139,000 jobs in May, more than economists expected, but the number wasn't a sure sign that the labor market remains solid, as April and March data were revised down. Long-term Treasury yields also continue to rise as Trump's tax bill fuels investor concerns around inflation and the US budget deficit. A negative catalyst in the form of rising unemployment or higher inflation could spark a reversal in the ultra-bullish signals Hartnett is watching.
Yahoo
2 hours ago
- Yahoo
Analysts Look to Tesla's Robotaxi Launch After Stock Hit From Musk-Trump Spat
Tesla is expected to launch its autonomous ride hailing service later this month, perhaps as soon as this week. The company has yet to confirm or deny a report from Bloomberg that it is targeting a June 12 launch for the robotaxi. The EV maker's stock could use a lift after a week marked by a spat between CEO Elon Musk and President (TSLA) is expected to launch its robotaxi service in Austin, Texas, as soon as this week, with the electric vehicle maker's stock in need of a lift after a week marked by political strife between CEO Elon Musk and President Trump. The stock rebounded nearly 4% to close just above $295 Friday, after tumbling 14% on Thursday. They've lost roughly one-quarter of their value since the start of the year. Tesla bulls believe a robotaxi program could drive substantial upside in the company's stock. Bloomberg last month reported that Tesla was targeting a June 12 launch, citing a person familiar with the matter, adding that the date could change. The company has not confirmed that date, and Tesla did not respond to Investopedia's request for comment in time for publication. Musk said in last month's earnings call and a May 20 interview with CNBC that the company was still on track to launch the program by the end of the month. The start of the program, Musk told CNBC, will likely be about 10 Model Y vehicles operating autonomously, with the company later expanding to more vehicles and cities. Tesla owners will eventually be able to add their vehicle to the available fleet of Teslas to rent for a ride, Musk has said, which could help Tesla scale the project before the Cybercab goes into production next year. Oppenheimer analysts recently wrote that the company's ability to get its software to drive fully autonomously with its current suite of cameras could be "key to its technology leadership and stock performance," but added they believe it might take at least one or two more hardware and software updates before Tesla can deliver reliable autonomous performance. More bullish analysts, like Wedbush's Dan Ives, have said they think successful autonomous driving software will be the start of technology that will eventually add $1 trillion in value to the company. Overall, analysts are somewhat divided on Tesla's stock, with 10 of the brokers tracked by Visible Alpha giving the stock a "buy" rating, with four "hold" and four "sell" ratings. Their average price target is about $304, slightly above Friday's closing level, but their price targets range from as low as $120 to as high as $500. Read the original article on Investopedia
