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Globe and Mail
07-04-2025
- Business
- Globe and Mail
Boeing Stock (NYSE:BA) Notches Up With Court Settlements
Good news for aerospace stock Boeing (BA) on the legal front, as it just took care of a couple court cases before jury selection processes could even fire up. That news proved welcome enough to investors, who sent shares up fractionally in Monday afternoon's trading. Don't Miss Our End of Quarter Offers: Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks. Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter. The cases in question were connected to an Ethopian Airlines flight in which a 737 Max crashed, and Boeing, back in 2021, agreed to acknowledge its liability in the crash, which reportedly killed 157 people. Two of those—Antoine Lewis and Darcy Belanger—people's families instead decided to settle, reports noted. This was supposed to be the start of a major trial in the U.S. District Court in Chicago, but Boeing's move to settle in advance has pulled the teeth out of that part of the trial process. That in turn should likely prove to be good news for Boeing, who now will not have to deal with yet another trial screaming about how its planes failed. And that is press that Boeing certainly does not need right now. Not All the Court Cases Were So Good But as is so often the case for Boeing, not everything could go its way. New reports suggest that Boeing will face a suit after all in the 11 th Circuit, as a federal court in Alabama went a bit too far in its dismissal of claims. The report noted that several companies brought trade secret theft claims against Boeing, stemming from allegations from 2008 that Boeing took these trade secrets to use for itself when it went to bid on an Air Force contract. The companies in question, which were aircraft maintenance and engineering operations, had contracts with Boeing that actually invalidated most of the claims, but the operative word there was 'most.' The claim for 'unjust enrichment' can move forward, the court found, as it was not excluded by the contracts. Is Boeing a Good Stock to Buy Right Now? Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 12 Buys, five Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 24.19% loss in its share price over the past year, the average BA price target of $195.87 per share implies 42.84% upside potential. See more BA analyst ratings Disclosure Disclaimer & Disclosure Report an Issue
Globe and Mail
07-04-2025
- Business
- Globe and Mail
Is Amazon Stock (AMZN) Still a Buy After Tariffs?
Amazon (AMZN) stock remains a standout investment despite President Donald Trump's ongoing trade war. At least, that's what five-star Wedbush analyst Scott Devitt argued in a note to clients. According to Devitt, 'Amazon is mispriced in comparison with the companies it competes with.' The analyst also called the current AMZN stock valuation 'nonsensical.' Don't Miss Our End of Quarter Offers: Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks. Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter. The Wedbush analyst pleased Amazon investors with a reiterated Outperform rating and a $280 price target, representing a potential 63.46% upside for AMZN shares. Devitt backed up his bullish stance on Amazon by pointing out that its retail business is expanding faster than Walmart's (WMT) or Costco's (COST). There's also Amazon's artificial intelligence (AI) business to consider. The e-commerce giant is quickly growing in the AI space. That's a boon to it as analysts, such as Bank of America's Vivek Arya, have argued that companies with strong ties to AI will benefit despite Trump's tariffs. Its cloud computing and data centers are another potential aid to the company. AMZN Stock Movement Today Amazon is among the stocks that have started to recover from President Trump's trade war. It helps that the market is beginning to bounce back from Wednesday's Liberation Day event today on news of a potential 90-day pause on tariffs. For AMZN, this has the stock up 1.05% as of Monday afternoon. That's a welcome change from its 9.14% drop over the last five days and its 21.3% decrease year-to-date. Is AMZN Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus estimate for Amazon is Strong Buy, based on 45 Buy and one Hold ratings over the last three months. With that comes an average price target of $268.05, representing a potential 55.32% upside for AMZN stock. See more AMZN stock analyst ratings
Globe and Mail
07-04-2025
- Business
- Globe and Mail
‘Turnaround Requires Patience,' Says Bank of America About Intel Stock
Intel (NASDAQ:INTC) has made its turnaround efforts a top priority, but for investors eagerly awaiting results, the comeback story has yet to take shape. Don't Miss Our End of Quarter Offers: Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks. Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter. That said, the recent appointment of Lip-Bu Tan as the new CEO has been greeted with enthusiasm as the new man at the helm is considered a sound choice. Tan also made a good impression during his keynote at the annual Intel Vision event last week in Las Vegas. Bank of America analyst Vivek Arya noted Tan's tone as 'generally more realistic and long-term focused, versus prior upbeat and overpromising mgmt. style.' Led by Tan, the new leadership team is committed to improving transparency in communication with both customers (OEMs/ODMs) and shareholders. Importantly, says the 5-star analyst, Intel recognizes the challenges it currently faces and views its turnaround as a long-term process rather than a quick fix. While management has largely withheld specific details about its upcoming plans, Arya says 'Execution will remain key in its multi-year journey to reshape the company.' Tan's comments also put a renewed emphasis on revitalizing the company culture and once again attracting top talent. Although the Vision 2025 event centered on Intel products, no new product announcements or roadmap updates were made. Instead, management emphasized fulfilling near-term commitments in PCs and servers while expanding into adjacent markets such as edge/IoT and automotive. In the data center space, Intel expects AI spending will grow from $234 billion in 2024 to $514 billion by 2027, reflecting a 30% CAGR. However, Arya notes that the company currently lacks a 'competitive AI portfolio,' as its existing 'Gaudi3' is only on par with Nvidia's H100 from 2022. Furthermore, its next-gen 'Jaguar Shores' product is not expected until late 2026 or 2027, by which time Nvidia will be ramping its Rubin platform. Intel also reaffirmed that its long-anticipated 18A process node remains on schedule for high-volume manufacturing with the Panther Lake (PC) product in the second half of 2025. However, the real product ramp and financial impact will only take place in 2026. While Arya likes Intel's new look, many aspects remain in the air, and investors should prepare for the turnaround to take some time. 'Overall,' Arya summed up, 'we believe Intel is heading toward the right direction, with an improved opportunity for a turnaround under Lip-Bu's leadership. However, there still remain many hurdles to overcome as a subscale IDM/foundry, with increasing competitive pressure on core x86 business (from AMD and ARM) amid quickly changing demand landscape in AI.' Bottom line, Arya assigns a Neutral rating for Intel shares, along with a $25 price target. Shares could appreciate by ~26% should the analyst's thesis play out in the coming months. (To watch Arya's track record, click here) That take is not far off the Street's general view on INTC; based on a mix of 27 Holds, 4 Sells and 1 Buy, the stock claims a Hold (i.e., Neutral) consensus rating. The average price target stands at $23.11, implying shares will surge ~16% over the next 12 months. (See INTC stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Globe and Mail
07-04-2025
- Automotive
- Globe and Mail
Nio Stock (NIO) Plummets as Chinese EV Competition Heats Up
Nio's (NIO) stock has hit turbulent waters, dropping 20.64% year-to-date. The Chinese electric vehicle maker reported a staggering $826.5 million loss from operations for Q4 2024 despite delivering 45% more vehicles compared to the previous year. Adding to investor concerns, Nio recently diluted shareholder value by 5% through the issuance of new shares to raise much-needed capital. Don't Miss Our End of Quarter Offers: Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks. Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter. Financial analysts have grown increasingly skeptical after Nio's latest earnings report. The company's Q1 2025 projections fell below market expectations, with anticipated vehicle deliveries and revenue figures that disappointed investors. While Nio aims to break even by 2026 through aggressive cost-cutting measures, many market watchers remain unconvinced, given the company's widening losses and intense market pressures. Chinese EV Market Competition The challenges facing Nio reflect the broader competitive landscape in China's electric vehicle market. BYD (BYDDY) has emerged as the dominant force, capturing 27% of the Chinese electric vehicle market alone. The pace of innovation is relentless, with new models launching on average every two days. Chinese manufacturers are raising the competitive stakes through remarkable technological advances. BYD recently released its 'God's Eye' advanced self-driving system for free, undermining competitors' plans to generate subscription revenue from similar technology. Other innovations include five-minute battery charging systems and even roof-mounted drones that can launch while vehicles are in motion. Foreign automakers are struggling to keep pace in this hypercompetitive environment. Tesla's (TSLA) market share of battery-only electric vehicle (EV) sales in China decreased from 12% to 7% in early 2025. Overall, foreign carmakers have seen their Chinese market presence hit a record low of 31%, down by one-third since 2020. Several global automotive giants are fighting back through partnerships with Chinese technology companies. BMW has recently announced collaborations with Alibaba (BABA) and Huawei, acknowledging that Chinese-made software may offer its best chance for survival in this market. For Nio and other smaller Chinese EV makers, the path forward appears increasingly challenging. As the founder, William Li, recently told staff, the company is cutting costs across the business as competition intensifies, following reports of a new round of layoffs in Europe. With consolidation looming in the Chinese EV market, manufacturers without cutting-edge 'smart EV' capabilities face stark choices. Analyst Response Mixed Analysts have had a mixed response to the company's recent challenges. Citi's Jeff Chung has adjusted his price target on Nio, reducing it to $8.10 (from $8.90), while maintaining a Buy rating. This adjustment follows expectations of a decline in Nio's Q1 vehicle margin to 11%-12%, attributed to the seasonal downturn in car sales, lower sales of Nio's current models before new launches in Q2, and weaker-than-expected sales of the Onvo model. However, Chung anticipates improved earnings for Nio starting mid-Q2, driven by the launch of several new models in April and May, which should enhance margins due to better economies of scale. On the other hand, Mizuho's Vijay Rakesh has decreased the price target for Nio to $4.20 (from $5) while maintaining a Neutral rating, noting weaker-than-anticipated vehicle deliveries in March, affected by seasonal factors and underperformance in Onvo deliveries. Rakesh considers Nio's shares to be appropriately valued at their current price level despite these challenges. Nio is rated a Hold overall, based on the recent recommendations of 11 analysts. The average price target for NIO stock is $4.93, which represents a potential upside of 42.49% from current levels. See more NIO analyst ratings.
Globe and Mail
06-04-2025
- Business
- Globe and Mail
What to Expect in the Week Ahead: Inflation Data, Bank Earnings, and More Tariff Concerns
Market sentiment turned increasingly bearish in the closing days of last week, and stock futures indicate a volatile start to the week as investors brace themselves for the release of March inflation data and the beginning of the first-quarter earnings season, which will be marked by major bank reports. These developments come amid growing concerns over President Trump's tariff policies, which are scheduled to take effect Wednesday, with China's retaliatory measures following on Thursday. Don't Miss Our End of Quarter Offers: Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks. Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter. Economic Calendar Packed Thursday's Consumer Price Index (CPI) report will command significant attention as investors gauge price pressures following the tariff announcements that have reignited recession fears. Economists expect March inflation to remain unchanged after February's steeper-than-expected decrease. Inflation remains a key factor in Federal Reserve decision-making about interest rates. The minutes from the Fed's March meeting, due to be released on Wednesday, will provide further insight into how officials view current economic conditions. Chicago Fed President Austan Goolsbee and New York Fed President John Williams are also scheduled to speak this week, potentially providing additional clues about the direction of monetary policy. Friday brings the Producer Price Index (PPI), which highlights wholesale price trends that can ultimately affect consumer prices. The preliminary consumer sentiment data, also released Friday, will include consumer price expectations—an important indicator of future inflation trends. Beyond inflation data and earnings, this week's economic calendar includes consumer credit (Monday), wholesale inventories (Wednesday), and initial jobless claims (Thursday). These reports will help investors assess consumer financial health and business inventory trends amid the uncertain economic climate. Big Banks Launch Earnings Season The first-quarter earnings season begins in earnest on Friday, with reports from financial heavyweights JPMorgan Chase (JPM), Wells Fargo (WFC), BlackRock (BLK), and Bank of New York Mellon (BK). JPMorgan, the world's largest bank by market capitalization, surprised analysts last quarter with stronger-than-expected profits driven by growth in investment banking and net interest income. Investors will watch for continued momentum in these areas. BlackRock's announcement comes after the company reported record assets under management last quarter. Analysts will likely seek updates on the firm's $30 billion AI infrastructure funding collaboration with Microsoft (MSFT), Nvidia (NVDA), and Elon Musk's xAI. Earlier in the week, other notable earnings reports include Levi Strauss (LEVI) on Monday, Cal-Maine Foods (CALM) on Tuesday, and Delta Air Lines (DAL) on Wednesday. Delta recently lowered its quarterly projections, citing weakening travel demand amid economic uncertainty. Looking to The Week Ahead With numerous potential market-moving events on the horizon, analysts suggest that any positive developments regarding global trade could trigger a sharp rebound, given the steep sell-off last week. However, if tariff tensions escalate or economic data disappoints, the selling pressure will likely continue throughout the week.
