Latest news with #Cahall
CNBC
a day ago
- Business
- CNBC
Wells Fargo names five stocks with more upside following their latest earnings
Wells Fargo highlighted five companies that have more room to appreciate following their latest earnings. The Wall Street investment bank says stocks like Sunrun are compelling. Other overweight-rated companies the bank is bullish on include: RealReal, Spotify , Williams Companies and Nextracker. Spotify Technology Analyst Steven Cahall says he's standing by the streaming music stock following its late July earnings report. Wells Fargo admitted the quarterly results weren't overly exciting, but said Spotify remains a top pick with too many attractive catalysts to ignore. "[Estimates] are coming down and there is nothing particularly incremental to get excited about," Cahall wrote. Nonetheless, the analyst said investors should remain calm. Cahall is particularly bullish on Spotify's latest subscription tier, Super Fan. "We think the next several years will see product and feature innovations, such as Super Fan, increase in videos, education, etc," he said. Shares of Spotify are up 64% this year with more room to run, Cahall went on to say. Williams Companies The natural gas and oil pipeline company is firing on all cylinders, according to Wells Fargo. Analyst Praneeth Satish raised his price target to $70 per share from $67 after Williams' mixed earnings report earlier this month. "WMB underperformed post-Q2, likely due to high expectations around new project FIDs," he wrote. FID's are final investment decision projects that involve moving from the project planning to execution. Despite the quarterly report, Wells Fargo says it's sticking with the stock thanks to several looming tailwinds. Satish called Williams' growth "sector leading," and said the company is likely to see a lower cash burden under President Trump's One Big Beautiful Bill. Williams shares are up 6.2% this year, excluding its 3.5% dividend yield, and the stock remains a top idea at Wells Fargo. RealReal "We continue to like what we see from REAL," analyst Ike Boruchow said following the resale clothing company's latest earnings report. RealReal's earnings and revenue both topped Wall Street estimates, and Boruchow says it remains a top pick. "At a high level, the model has course corrected, margin structure has shifted and top line is back to [plus double digit] growth," he said. And that growth still has room to run, he added. "Resale is a clear winner in today's macro, and we remain bullish," he went on. Shares are up 47% in August alone. Spotify "[Estimates] are coming down and there is nothing particularly incremental to get excited about. But, we'd argue this is the pullback for those that believe in SPOT's pricing power + bigger margin expansion setup into '26. ... We think [the] next several years will see product and feature innovations, such as Super Fan, increase in videos, education, etc." Williams Companies "Sector Leading Growth Deserves Premium Multiple. ... WMB underperformed post-Q2, likely due to high expectations around new project FIDs. ... We continue to project WMB will be able to grow EBITDA at an 11% [compound annual growth rate] over the next three years, well ahead of guidance of 5-7% & Consensus of 8%." RealReal "We continue to like what we see from REAL. ... At a high level, the model has course corrected, margin structure has shifted and top line is back to [plus double digit] growth (and accelerating). Resale is a clear winner in today's macro, and we remain bullish." Sunrun "We continue to view RUN as a top pick in the residential solar space. ... RUN's base value is $8/sh, supported by an estimated $400MM/yr of cash generation through 2030. ... RUN has safe harbored solar growth through 2030 with upside potential in 2030+ tied to grid services monetization." Read more. Nextracker "We have an Overweight rating. NXT continues to gain market share from peers and is seeing growth across all geographical regions. We believe NXT is well positioned to beat FY 2026 Consensus revenue estimates."
Business Insider
23-06-2025
- Business
- Business Insider
Netflix should embrace short-form video and take on YouTube, a Wall Street analyst says
Netflix's next move against YouTube should be an embrace of "high-value short-form content," Wells Fargo media analyst Steven Cahall argued in a recent note. Cahall thinks Netflix could lure creators from YouTube by promising exclusive multi-year deals. Cahall wrote that adding shorter videos would perfectly complement Netflix's vast library. It would make the streamer a top destination for viewers, even if they only have a few minutes to spare. That could help form fresh habits with young audiences hooked on TikTok, YouTube Shorts, and Instagram Reels. "Short-form could help Netflix navigate generational changes," Cahall wrote. Satisfying viewers' short-form itch could assist Netflix in closing the widening viewership gap with YouTube, even though it can't replicate YouTube's unrivaled firehose of user-generated content. It could also help Netflix boost its mobile experience, which it recently upgraded with a vertical video feed and AI-powered search. Netflix could offer more financial security for content creators. YouTube pays creators 55% of its ad revenue, gives them lots of data, and lets them have a direct relationship with their audiences. Still, they only get paid if the videos are a hit. "They're doing it all at their own risk," Netflix co-CEO Ted Sarandos has said of YouTubers. Netflix could flip the script by paying YouTubers upfront so they're not on the hook for flops. This could be a win-win, since Cahall estimates that Netflix could pay top creators an average of $60 per 1,000 hours viewed, which is 26% less than the rate it's paying for content now. Netflix has already entered YouTube's territory with moves like inking a deal with YouTube megastar Ms. Rachel, and Sarandos hinted that he's targeting video podcasters, as Business Insider previously reported. Short-form is also getting a second look in Hollywood, as so-called " mini dramas" — vertical serials with bite-sized episodes —gain popularity. However, not everyone on Wall Street believes Netflix should branch out into short-form video. Joseph Bonner of Argus Research doubts Netflix could seriously challenge YouTube or TikTok on the short-form front. Instead, he told BI that the streaming titan should focus its attention on improving its nascent advertising technology and building out its burgeoning ad tier. A Netflix spokesperson didn't respond to a request for comment. YouTube is playing the long game Netflix may have YouTube in its crosshairs, but the inverse is also true. YouTube is betting big on long-form content by investing in its TV app, which now drives more viewership than its mobile app or website. Some creators are cashing in as YouTube's viewership shifts to TVs. Fede Goldenberg, YouTube's head of TV and film partnerships, recently said that 30% of YouTubers are making the majority of their revenue from the TV app, where long-form content is especially popular. "These are generating incredible retention — and, obviously, monetization," Goldenberg said. "You get more bang for your buck when you're programming long form on YouTube." Podcasts are one of the bigger draws on the big screen. Goldenberg said 1 billion people watch podcasts through YouTube's TV app each month for 400 million combined hours. YouTube's quest is to build a one-stop shop for video, whether it's short-form or long-form. Paul Snow, YouTube's head of sports and studio partnerships, recently outlined that strategy. "How do we make sure that we're the place people want to stay after they watch a single video opposed to navigating to many other platforms that are available?" he said.
Business Insider
12-05-2025
- Business
- Business Insider
Wells Fargo Keeps Their Hold Rating on E. W. Scripps Company Class A (SSP)
Wells Fargo analyst Steven Cahall maintained a Hold rating on E. W. Scripps Company Class A (SSP – Research Report) on May 9 and set a price target of $2.80. The company's shares closed last Friday at $2.32. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Cahall covers the Communication Services sector, focusing on stocks such as Paramount Global Class B, Roku, and E. W. Scripps Company Class A. According to TipRanks, Cahall has an average return of 6.1% and a 52.35% success rate on recommended stocks. E. W. Scripps Company Class A has an analyst consensus of Moderate Buy, with a price target consensus of $6.93. Based on E. W. Scripps Company Class A's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $728.38 million and a net profit of $95.39 million. In comparison, last year the company earned a revenue of $615.77 million and had a GAAP net loss of $255.76 million
Business Insider
12-05-2025
- Business
- Business Insider
Wells Fargo Remains a Sell on Altice Usa (ATUS)
In a report released on May 9, Steven Cahall from Wells Fargo maintained a Sell rating on Altice Usa (ATUS – Research Report), with a price target of $1.00. The company's shares closed last Friday at $2.62. Protect Your Portfolio Against Market Uncertainty Cahall covers the Communication Services sector, focusing on stocks such as Paramount Global Class B, Roku, and E. W. Scripps Company Class A. According to TipRanks, Cahall has an average return of 6.1% and a 52.35% success rate on recommended stocks. In addition to Wells Fargo, Altice Usa also received a Sell from Bank of America Securities's Jessica Reif Ehrlich in a report issued on May 9. However, on the same day, Morgan Stanley maintained a Hold rating on Altice Usa (NYSE: ATUS).
