Gilead price target raised to $140 from $126 at BofA
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Metsera's (MTSR) Amylin Agonist Data Leads to Price Target Increase
Metsera Inc. (NASDAQ:MTSR) is one of the best IPO stocks to buy according to Wall Street analysts. Earlier on July 20, BofA raised the firm's price target on Metsera to $45 from $38, while keeping a Buy rating on the shares after the company announced the first round of clinical data on its amylin agonist, called MET-233i. Metsera then later released its Q2 2025 financial results in the same month. The company reported cash reserves of $530.9 million as of June 30, compared to $352.4 million as of December 31, 2024, and is expected to provide an operational runway through 2027. In Q2, Metsera reported positive Phase 1 data for MET-233i, a once-monthly amylin analog. A clinical researcher in a lab examining a new biopharmaceutical product. The company also has MET-097i, a monthly GLP-1 receptor agonist, with Phase 3 trials expected to begin in late 2025. The release of topline data from the VESPER-1 and interim data from VESPER-3 trials is anticipated in late 2025 to inform the dosing regimen for the Phase 3 trials. Additionally, Metsera's oral peptide platform, including MET-097o and MET-224o, is expected to present four-week data later in the year. Metsera Inc. (NASDAQ:MTSR) is a clinical-stage biotechnology company that develops injectable and oral nutrient-stimulated hormone analog peptides to treat obesity, overweight, and related diseases. While we acknowledge the potential of MTSR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
7 hours ago
- Yahoo
The ‘Ghosts of 2007' and the graybeard ‘Nifty 50': BofA looks at the rare situation in markets and finds ominous parallels to the GFC and the dotcom bubble
The U.S. Federal Reserve's looming decision on whether to cut interest rates in September 2025 is sparking heightened concern on Wall Street, as strategists at Bank of America (BofA) Securities draw unsettling parallels to the months preceding the 2007-08 financial crisis. A recent Liquid Insight report, published August 14 by strategist Howard Du and his team, warns that the current monetary and inflation landscape is flashing signals reminiscent of the last time the Fed cut rates into a rising inflation environment. 'This is a possible but historically rare regime,' they added. The last time it happened was from the second half of 2007 to the first half of 2008, they said in their note titled, 'ghosts of 2007.' At the same time, a separate BofA Research note, by the Equity & Quant strategy team, looked at another historical rhyme: between the mega-cap stocks dubbed the 'Nifty 50″—notably Nvidia and other members of the 'Magnificent Seven'—and the last time they outperformed the S&P 500 for so many years. (The first Nifty 50 to bear the nickname was a group that ran until roughly 1973, when the game changed for markets because of the onset of the Great Inflation and other factors, including the shift away from the gold standard.) 'Mega-caps led for seven years but cracked in July,' wrote the team led by Savita Subramanian, adding that the last memorable run by the largest 50 stocks in terms of market cap was the 1990s lead up to the dotcom bubble. That was about six years long, a similar duration to the current market pattern. The analysis from Du's team notes that the convergence of falling policy rates and accelerating inflation is exceedingly rare, occurring just 16% of the time since 1973. Historically, central banks have slashed rates in response to declining inflation, not rising prices. The bank's concern centers on the potential for rate cuts this year to push the so-called 'real policy rate'—the Fed rate adjusted for inflation—deeply negative. Such a move, the report warns, could further weaken the U.S. dollar, citing striking similarities to 2007, when the Fed's easing amid supply-driven inflation triggered currency volatility and set the stage for the financial meltdown. Meanwhile, Subramanian's team suggested that the Nifty 50 may be giving way to broader market leadership. Historically, Fed easing, particularly during periods of sticky inflation, has triggered underperformance by mega-caps. BofA's analysts say that, in past recoveries, small-cap and value-oriented stocks have strongly outperformed, benefitting from cash moving out of money market funds into equities as risk-free returns begin to dwindle. The notes were written by different teams on subsequent days, digesting the Fed's likely cuts coming down the pike and the several parallels to the last two major financial crashes of the last 25 years. To be sure, BofA isn't connecting these two trends to each other specifically, and isn't predicting another imminent financial crisis. But the ghosts of 2007 are back, and the Nifty 50 is showing wear and tear. What's next? Market conviction for a September rate cut is now running near certainty, with the probability of a 25bps reduction at the next Fed meeting nearing 100%. This sharp shift follows disappointing July employment numbers and a string of downward revisions to prior job data. Markets are also betting on at least two rate cuts before year-end and forecast the Fed funds rate to fall below 3% by 2026. Meanwhile, BofA's models suggest that even modest monthly rises in headline CPI will keep year-on-year inflation elevated at 2.9% or higher into December, up from 2.3%-2.4% in early 2025—an echo, the bank says, of the temporary inflation surges triggered by supply-side shocks during 2007-08. Howard Du's team also noted strong parallels in the foreign exchange market, flagging that the U.S. dollar is tracking its weakest year since 1999 and is moving more closely in tandem with 2007 than any other year in half a century. Back then, the dollar's sharp pre-rate-cut depreciation lingered for months and only reversed as real rates recovered—pain that currency markets may soon re-experience if the Fed proceeds as markets expect. 'While the [dollar] is on track for largest year-to-date depreciation since 1999,' according to Du's team, 'the price action in 2025 still has the highest correlation with 2007 out of all years since 1973.' Subramanian's proprietary U.S. Regime Indicator, which turned to 'Recovery' in July and held steady into August, mirrors previous cycles in which smaller and value stocks led, with high-beta and sector-neutral value factors outperforming the big names by notable margins. Today's mega-caps, while pivotal to market gains in recent years, now exhibit average growth and weakened quality—measured by lower free cash flow margins and fewer highly-rated companies—heightening their vulnerability as valuation premiums stretch. As rates head lower, BofA expects flows to favor value and dividend-oriented stocks, with investor strategies tilting toward Russell 1000 names offering robust but not excessive dividends. Small-cap and value stocks with low P/E ratios and high beta also screen as top performers, in both sector-neutral and unconstrained assessments. Meanwhile, the persistent crowding and high valuations in growth names point to a broadening of opportunities outside mega-cap growth as risk premiums compress and market leadership tilts. In summary, BofA's dual analysis offers both a warning and a roadmap: The Fed's imminent rate cut, set against the rare backdrop of accelerating inflation, invokes a historical precedent fraught with risk for the dollar and for financial market stability. Simultaneously, the stage appears set for a major rotation within U.S. equities, away from the mega-caps toward broader market segments—a development investors will be closely watching as the Fed's pivotal September meeting approaches. If there's a crash to rival the early 2000s or the Great Financial Crisis of 2008, though, that will be a different story indeed. For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
9 hours ago
- Yahoo
Are Small-Cap ETFs Finally Ready to Shine?
The small-cap space has started to show momentum in recent weeks. The ultra-popular iShares Russell 2000 ETF IWM gained nearly 3% over the past week, outpacing the gain of 1% for the broad market fund are various factors that are supporting the small-cap rally and will continue to do so in the short term. Anticipated Fed Rate Cuts The latest inflation data has increased expectations for a rate cut in September. Per the CME Group, futures markets were pricing in a 94% chance of a quarter-point cut at next month's Fed meeting, compared with about 85% before the inflation data (read: Small-Cap ETFs Outperform on Inflation Data).As pint-sized companies have a higher debt burden (mostly at floating rates), lower rates lead to reduced borrowing costs, helping small businesses expand their operations easily and resulting in increased profitability. Underperformance & Attractive Valuations The Russell 2000 (small-cap benchmark) trails the S&P 500 from a year-to-date look, up just 1.5% versus 9.6%. This underperformance may offer an advantageous entry point, especially with BofA signaling long-term optimism for small and mid-cap sectors amid overvalued large such, small-caps are trading at a discount compared to large-caps, offering a valuation edge. Institutional investors are increasingly rotating out of crowded mega-cap trades into undervalued segments like small-caps, a trend that has accelerated in recent weeks. Growing Small-Business Optimism Optimism among small business owners grew in July on better business conditions and expansion opportunities. The latest data from the National Federation of Independent Business (NFIB) revealed that the small business optimism index climbed to 100.3 in July — the highest level since February and slightly above the 52-year average of 98. Small businesses serve as a vital barometer of the U.S. economy. The rise in optimism could reflect a stabilizing business environment, offering a bullish signal for market sentiment and boding well for small-cap stocks and ETFs. Reshoring & M&A Trends Onshoring and reshoring trends favor domestically focused small-cap firms, especially as global supply chain vulnerabilities persist. Companies bringing supply chains back to the United States stand to benefit domestic-focused small-cap firms (read: Small-Cap ETFs Rally in July: Will the Momentum Continue?).Dealmaking is picking up in healthcare, biotech and tech services. Large-cap companies with ample cash are targeting small and mid-sized firms for growth, given their innovative edge and lean valuations. This M&A momentum is drawing active managers and hedge funds, injecting fresh liquidity into the space. M&A activity historically favors small companies (90% of acquired firms are small caps) and this trend is expected to continue as larger firms seek growth. AI & Crypto Tailwinds AI-driven infrastructure growth (e.g. data centers, cooling, electrification) may lift niche small-cap segments. Broadening Market Breadth While mega-cap stocks have led the rally in recent years, gains are beginning to spread more evenly across the market. This broadening trend often signals healthier market dynamics and can act as a catalyst for small-cap outperformance. Top Zacks Rank ETFs to Buy There are several ETFs in the space with a solid Zacks ETF Rank #1 (Strong Buy) or #2 (Buy), suggesting their outperformance in the coming weeks. Some of these are iShares Core S&P Small-Cap ETF IJR, Vanguard Small-Cap ETF VB, Schwab U.S. Small-Cap ETF SCHA, Vanguard Russell 2000 ETF VTWO, SPDR Portfolio S&P 600 Small Cap ETF SPSM, and Vanguard S&P Small-Cap 600 ETF VIOO. These funds are well diversified across various sectors and securities. Invest in Gold Thor Metals Group: Best Overall Gold IRA American Hartford Gold: #1 Precious Metals Dealer in the Nation Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports iShares Core S&P Small-Cap ETF (IJR): ETF Research Reports Schwab U.S. Small-Cap ETF (SCHA): ETF Research Reports Vanguard Small-Cap ETF (VB): ETF Research Reports Vanguard Russell 2000 ETF (VTWO): ETF Research Reports Vanguard S&P Small-Cap 600 ETF (VIOO): ETF Research Reports SPDR Portfolio S&P 600 Small Cap ETF (SPSM): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
