Latest news with #Dorsheimer
CNBC
18-07-2025
- Business
- CNBC
Buy this high-flying battery maker as drone demand is set to surge, William Blair says
A rise in demand for drones could be a boon for Amprius Technologies stock, according to William Blair. The firm upgraded Amprius stock to outperform from market perform in a Friday note, albeit without a price target. Shares have surged more than 187% so far in 2025. The company develops and manufactures lithium-ion batteries that are used in drones and high-altitude pseudo satellites (HAPS). Analyst Jed Dorsheimer said that the stock will be a beneficiary of the Trump administration's emphasis and focus on drones for defense, as a result of its customers being key players in building the drones. AMPX YTD mountain Amprius Technologies stock in 2025. "This administration has made domestic drone production a strategic goal," the analyst said. President Donald Trump's " Unleashing American Drone Dominance " executive order in June has been a key catalyst for the industry, Dorsheimer said. "The stock has run up significantly from the drone executive order; however, our view is that Amprius is at the beginning of converting evaluations into large purchase orders, supported by the increased focus on drones, and momentum will continue in the shares," Dorsheimer said. The analyst also said Amprius' manufacturing capacity in South Korea and potentially in Europe could be ways to sidestep tariff concerns, especially since the company has a large production network that's reliant on China. "As of now, the performance advantage has outweighed any China related qualms for customers, but Western-friendly regions will eliminate any forward concerns, especially for military customers," the analyst said.
Business Insider
08-07-2025
- Automotive
- Business Insider
‘Time to Hit the Brakes?' Says Top Analyst after Downgrading Tesla Stock (TSLA)
Tesla (TSLA) stock fell sharply by 7% on Monday morning after William Blair analyst Jed Dorsheimer downgraded the EV giant to Hold from Buy. The five-star analyst cited concerns over recent regulatory changes and CEO Elon Musk 's renewed political interest, both of which cloud Tesla's near-term outlook. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. What Triggered the Downgrade? Dorsheimer sees the recent passage of the 'Big Beautiful Bill' (BBB) as a key trigger. While the removal of the $7,500 EV tax credit was anticipated, the unexpected elimination of corporate average fuel economy (CAFE) fines has raised concerns. As a result, Tesla could lose over $2 billion in regulatory credit revenue, a major hit to its bottom line that may force Wall Street analysts to revise their earnings models. Further, Musk recently announced the formation of the America Party in response to the BBB's passage. The move has raised concerns about his attention drifting from Tesla's core business. Finally, Dorsheimer noted that Tesla stock's current valuation is well above that of its tech peers. With slowing momentum and regulatory headwinds, the Top analyst expects this premium to shrink. Also, Dorsheimer said that investor confidence may improve if Tesla shows progress in self-driving technology. Is TSLA Stock a Buy? Turning to Wall Street, TSLA stock has a Hold consensus rating based on 14 Buys, 12 Holds, and nine Sells assigned in the last three months. At $293.09, the average Tesla price target implies a 0.1% downside potential. The stock has declined 20.2% over the past six months.
CNBC
07-07-2025
- Automotive
- CNBC
William Blair downgrades Tesla, says key change in GOP spending bill dampens the stock's outlook
A lesser-known policy elimination in the Republican tax and spending bill may further dampen the outlook for Tesla shares, according to William Blair. Analyst Jed Dorsheimer on Monday downgraded Tesla to market perform from outperform. The bill, which was signed into law Friday by President Donald Trump and approved by Congress last week, expands Trump's 2017 Tax Cuts and Jobs Act — making most existing tax rates permanent — while also increasing spending for the administration's defense, deportation and national security efforts and cutting health care and nutrition programs. Directly affecting Tesla is the bill's elimination of a $7,500 tax credit for the purchase or lease of a new electric vehicle, which was intended to make EVs more affordable for buyers and reduce carbon emissions. What investors didn't fully expect, however, was the impact of the bill's cut to fines that automakers would have faced under Corporate Average Fuel Economy standards. This elimination "requires a reset in expectations," Dorsheimer said. "While the $7,500 tax credit is likely to affect demand, the combination of a demand headwind and over $2 billion in profit from regulatory credits at risk may be too much for investors to bear," the analyst wrote in a note to clients. "Unlike the EV tax credit, we expect the reduction in regulatory credit revenue to result in a direct hit to profitability, prompting yet another across-the-board reset to Street models." Dorsheimer expects the removal of the EV tax credit, which ends Sept. 30, to lead to an increase in unit volumes in the third quarter but then pressure fourth-quarter sales and margins. Lower factory utilization and pricing concessions should weigh on Tesla's fourth-quarter performance, he said. The risk of CEO Elon Musk's political efforts to Tesla stock is also back on the table for investors, many of whom believe that Musk's brief role with the Department of Government Efficiency (DOGE) damaged the company's brand and sales. Musk announced the formation of a new political party over the Fourth of July weekend, writing in a Saturday post on X that "today, the America Party is formed to give you back your freedom." Musk is opposed to Trump's bill. "We expect that investors are growing tired of the distraction at a point when the business needs Musk's attention the most and only see downside from his dip back into politics," Dorsheimer said. "We would prefer this effort to be channeled towards the robotaxi rollout at this critical juncture." Tesla shares were down more than 6% in the premarket.
Business Insider
05-06-2025
- Business
- Business Insider
William Blair Remains a Hold on Axcelis Technologies (ACLS)
In a report released yesterday, Jed Dorsheimer from William Blair maintained a Hold rating on Axcelis Technologies (ACLS – Research Report). The company's shares closed yesterday at $61.49. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Dorsheimer is a 5-star analyst with an average return of 29.3% and a 51.92% success rate. Dorsheimer covers the Technology sector, focusing on stocks such as Aehr Test Systems, Axcelis Technologies, and Applied Materials. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Axcelis Technologies with a $65.50 average price target.
