Top Analyst Ratings: May 13th, 2025
Top Analyst Ratings
Caterpillar (CAT) Robert W. Baird & Co. upgraded Caterpillar to 'Outperform' and raised the price target from USD 309 to USD 395, reflecting increased confidence in the company's future performance.
Fedex Corporation (FDX) Bank of America Merrill Lynch lowered FedEx Corp's price target from USD 272 to USD 270 but maintained a 'Buy' rating, indicating continued positive sentiment despite slightly tempered expectations.
Robinhood (HOOD) Morgan Stanley & Co. maintained Robinhood's 'Equal-Weight' rating while raising the price target from USD 40 to USD 43, suggesting moderate optimism about the company's current position.
Johnson & Johnson (JNJ) SVB Leerink downgraded Johnson & Johnson to 'Market Perform' and reduced the price target from USD 169 to USD 153, reflecting a more cautious outlook on the company's growth potential.
Shopify Inc. (SHOP:CA) (SHOP) Morningstar maintained Shopify's 'Hold' rating with an unchanged price target of CAD 167, indicating a balanced view between growth opportunities and existing challenges.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
28 minutes ago
- Globe and Mail
Ontario's planned crackdown on exclusivity deals could go further, pharmacy regulator says
The board of Ontario's pharmacy regulator said on Monday the province's proposed new restrictions on exclusivity deals between insurers and pharmacies were a good step, but should go further to protect patient safety. Ontario recently began a second public consultation on preferred provider (or pharmacy) networks (PPNs), a type of deal between pharmacies and insurers that can restrict where patients get medication. The consultation proposes two options for restricting the deals: 'any able and willing provider' legislation that would allow any pharmacy to join an insurer's network if they met the necessary criteria; and 'standardized and mandatory exemptions' that would allow any patient to go outside a network if they met conditions set by a regulator. The province leaves it open to whether it could pursue either, both or neither option. The board of the Ontario College of Pharmacists has been discussing a potential crackdown on PPNs since early last year, even passing a motion expressing 'zero tolerance' for closed networks last July. The board discussed the latest consultation at its meeting Monday. A briefing document prepared and distributed by college staff ahead of time suggested the province's proposals could be 'strengthened' to meet the regulator's goals of guaranteeing patient choice, continuity of care and access to care. Ontario regulator condemns exclusive deals between pharmacies, insurance companies Board chair Doug Brown, who owns and runs a pharmacy in the town of Port Perry, said he acknowledged that there was frustration in the community 'over what is perceived to be the lack of progress on this issue.' However, he said the consultation – which is run by Ontario's Ministry of Finance – crosses multiple industries and needs to be done carefully. He said any new actions undertaken by the college could be undone depending on how the legislation is eventually drafted, and so it would be prudent for the regulator to wait for now. 'But let me be absolutely clear, the college is prepared to move quickly and decisively once the government has confirmed what it will or won't do to address the clear concerns that remained unresolved,' he said. Most board members expressed support for the province's proposed options. Elnora Magboo, one of the board's public members, asked during the meeting whether PPNs could provide greater access to medication because of savings negotiated between the agreement's participants. Ontario considers rule to limit exclusivity deals between insurers and pharmacies Insurers have argued PPNs are useful tools to keep costs down. They say the deals allow them to negotiate discounts from pharmacies that they pass on to plan sponsors. But some of the board's independent pharmacists, who are often kept out of these networks in favour of large chain pharmacies, pushed back on the idea that there are cost savings, and raised other concerns with the deals. Siva Sivapalan, a community pharmacist in Beamsville, raised a witness the board heard from last July, whose medication was delivered by a network pharmacy to a non-refrigerated area at the back of a craft store. That witness – a teacher from Waterloo named Amy Miller – lodged a complaint with the network pharmacy last summer. In the months since, she has expressed frustration at the slow pace of the college's investigation and the difficulty in obtaining her medication from her preferred source. 'Every month that passes without a decision makes my access to care more uncertain,' Ms. Miller wrote in a letter sent to the board in May, which she shared with The Globe and Mail. 'Every delay deepens the harm. And every public statement you make about protecting patients becomes more hollow.' College spokesperson Dave Bourne said the regulator could not share details about Ms. Miller's case, but continues to investigate concerns about PPNs. Speaking generally, he said some complaints are complex and time-consuming to investigate. 'We understand Ms. Miller's frustration with the time being taken to address her complaint, and we empathize with her situation,' he said in an e-mail.
Globe and Mail
35 minutes ago
- Globe and Mail
Could Buying Tesla Stock Today Set You Up for Life?
For many investors, buying Tesla (NASDAQ: TSLA) has already set them up for life, but will that be true for anyone newly buying into the stock now? Here's a look at what you need to know before buying the stock. Understanding the investment thesis for Tesla stock Tesla is an unusual stock, known to most investors primarily as the leading electric vehicle (EV) company, but that isn't the primary value driver of the stock. Indeed, if you look at Tesla solely as a car company, you would likely avoid the stock. Let's put it this way: Tesla currently trades at a price-to-earnings multiple of 192, compared to single-digit multiples at car companies like Ford Motor Company and General Motors. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The valuation discrepancy doesn't stem from Tesla's superior profit margins or its leading position in the electric vehicle market. Instead, it comes down to Tesla being able to do something that rival car companies haven't yet done or have abandoned trying to do: launch a robotaxi service. General Motors has already abandoned robotaxi development, and Ford (which had planned to have a robotaxi service in place by 2021) ended its investment (alongside Volkswagen) in robotaxi company Argo AI in 2022. Volkswagen plans to launch its robotaxi service in 2026. So, if Tesla's valuation isn't justified in terms of being a highly successful electric vehicle company, then how should it be viewed? The following key points apply, and they make Tesla a highly attractive stock for the speculative end of your portfolio: The value in Tesla lies in its robotaxi business; this is not purely a car company stock, or even an electric vehicle stock, and its valuation reflects that. The reliance on robotaxi/full self-driving (FSD) makes it a speculative growth stock. Tesla's installed base of vehicles gives it significant advantages over Waymo and others. Tesla is not your average speculative growth stock; it holds significant advantages over typical growth stocks. Why robotaxis matter and why Tesla isn't your average growth stock The robotaxi concept and the FSD that powers it are potentially a huge earnings driver for Tesla. One of Tesla's most vocal and visible supporters, Cathie Wood's Ark Invest, which expected a valuation of $2,600 per share for Tesla in 2029, relies on a model that prescribes 88% of the company's value from robotaxis, compared to just 9% from EVs. The opportunity to earn recurring revenue from selling unsupervised FSD subscriptions to Tesla owners wanting to use their vehicles as robotaxis is massive, as is the potential to generate recurring revenue on a ride-per-mile basis from robotaxis. Moreover, Tesla plans to mass-produce its dedicated robotaxi vehicle, Cybercab, next year. A speculative growth stock That said, the robotaxi launch hasn't even taken place yet (it's scheduled for June 12 in Austin), and it will only be on a small scale initially. As such, Tesla is a speculative growth stock, an observation that suggests Tesla stock should be filed on a long list of highly speculative investments to consider on a rainy day. Why Tesla deserves a place in a balanced portfolio However, there are differences -- in fact, many differences -- between Tesla and typical growth stocks. First, speculative growth stocks are usually not established leaders in the core business that underpins their growth. The Model Y is not only the best-selling electric vehicle (EV) in the world, but it's also the best-selling car in the world. In other words, Tesla already has a compelling brand and is the market leader in the growth area of the auto market. Second, this is not a struggling small-cap stock desperately trying to establish brand recognition and promote its new technology to a sceptical marketplace. Waymo has offered a robotaxi service since 2018, and there is little doubt that consumers want to use robotaxis. Third, Tesla isn't a growth stock struggling with its finances and seeking a larger partner to invest, which would dilute existing shareholders' claims on future cash flows. A quick look at its most recent balance sheet reveals $37 billion in cash and equivalents, alongside $7.5 billion in debt and finance leases, resulting in a net cash position of $29.5 billion. Finally, Tesla's position as a cost-effective automaker with the capacity and scale to ramp up production and the vehicles on the road means it can produce robotaxis (whether Cybercab or existing Tesla models) to support growth, and it has a vast bank of data from Tesla vehicles to use to improve its FSD capability. All told, Tesla is speculative because its robotaxis haven't even been launched yet, there's a lot more certainty around the company than in most growth stocks. That makes it worth buying for the risk-seeking end of a portfolio. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $367,516!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,712!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $669,517!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of June 2, 2025
Globe and Mail
an hour ago
- Globe and Mail
Newsmax Stock: A Cautionary Tale for IPO Investors?
Initial public offerings (IPOs) can get a lot of attention from the press and investors. This is the first time the public can buy shares in a company, and the share price can move up or down quickly. Newsmax (NYSE: NMAX) completed its IPO at the end of March. In the company's short life as a public company, the share price has been on a wild ride. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » It's good to take a look at the events and glean lessons. Perhaps it can even serve as a cautionary tale for the next flashy IPO that captures people's attention. Ignore the hype Newmax's IPO raised $75 million by selling 7.5 million shares at $10. However, most investors weren't able to purchase shares at that price. On the stock's first day of trading, the share price shot up to close at $83.51. The following day, April Fool's Day, the shares closed at $233. There's no reliable way to predict short-term share price movements, however. Those who feared missing out and jumped in at these elevated prices have seen a massive downslide. The share price closed at $16.19 on June 5. A key lesson is not to buy into a stock's hype merely because the price has gone up a lot. Focus on the fundamentals Granted, it's not easy to ignore the hype and massive price movements. However, the best investing strategy is to look at the business and assess its long-term prospects. A media company, Newsmax generated more than three-quarters of its revenue from its broadcasting business. This includes cable channels and a streaming service that produces news and other content. Newsmax has a history of producing losses, however. Last year, the company lost $72.2 million compared to losses of $30.4 million and $41.8 million in 2022 and 2023, respectively. The wider losses came despite revenue increasing from $35.7 million to $171 million during this time. The company reported first-quarter results in May that showed a $17.2 million loss. Granted, it's heading in the right direction since that's narrower than the $50.7 million loss a year ago. While it's positive to produce revenue gains, profitability is what counts. When looking at newly public companies, ideally, investors should see them operating in the black. That's particularly true for Newsmax given it faces large and well-entrenched competitors. Some basic math Newsmax currently has a $1.5 billion market capitalization. However, when the stock price reached $233, its market cap was about $21 billion. That might not mean much in isolation. But putting the figure into context could send a warning signal. Since the company doesn't report a profit, investors can't use the price-to-earnings (P/E) ratio. However, you can look at price-to-sales (P/S). Newmax's 2024 sales were $171 million in 2024. Dividing the $21 billion market cap by the sales figure equals a P/S multiple of 122 after its second day of trading. The company's revenue grew by 26% in 2024, but that valuation still seems excessive. The shares currently trade at a P/S ratio of 9. The Russell 2000 index, which encompasses small capitalization stocks, typically has a P/S ratio of about 1 to 2. There should be a compelling reason why a stock has a so much higher valuation than the benchmark index. Remember the lessons It's natural to forget about unpleasant experiences. But you need to remember so you can learn and become better-educated investors. The next time you hear about a high-flying IPO, think about Newsmax and whether people are making short-term trades or investing because they believe the company has strong long-term fundamentals. After all, it's wise to think about investing as a marathon rather than a sprint. Should you invest $1,000 in Newsmax right now? Before you buy stock in Newsmax, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Newsmax wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor 's total average return is792% — a market-crushing outperformance compared to173%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
