Latest news with #Picariello
Yahoo
14 hours ago
- Automotive
- Yahoo
BNP Paribas Exane dubs Goodyear "tariff winner," shares surge
-- Shares of Goodyear Tire & Rubber Co (NASDAQ:GT) soared 10.7% on Monday following an upgrade by BNP Paribas (OTC:BNPQY) Exane, which dubbed the company a "true tariff winner" and heightened the price target. Analyst James Picariello elevated the stock to Outperform from Neutral, highlighting Goodyear's estimated 10.5 percentage points cost advantage in the U.S. due to tariffs and its potential for price/mix-led earnings growth. Picariello's report indicated that Goodyear's cost advantage stems from the current Section 232 auto tariffs, which levy a 25% duty rate on about 55% of all U.S. tires sold that are non-USMCA-compliant. As Goodyear is the largest tire producer in North America and only 12% of its U.S. sales are subject to these tariffs, the company enjoys a significant cost benefit. The analyst expressed confidence in Goodyear's ability to leverage this advantage for earnings upside, emphasizing the industry's need to price for tariffs. The report also noted Goodyear's progress in narrowing its margin gap compared to peers and reducing net leverage, which is expected to reach healthy levels by next year. The success of the 'Goodyear Forward' cost savings initiative, which is on track to achieve more than $1.5 billion by the first half of 2026, and the company's effective divestitures are contributing to this positive outlook. In light of these developments, BNP Paribas Exane has raised its estimates for Goodyear's EBIT and EPS for 2026-2027, with the new price target set at $15, up from the previous $11. This valuation is based on an unchanged multiple of approximately 4.4 times the estimated 2026 EV/EBITDA, compared to peers at 4.9 times, reflecting Goodyear's net leverage and profitability. The upgrade and raised price target reflect a bullish sentiment on Goodyear's strategic positioning and its ability to capitalize on market conditions, which appears to resonate with investors as evidenced by the stock's significant rise in the trading session. Related articles BNP Paribas Exane dubs Goodyear "tariff winner," shares surge FTSE 100 today: Index edges lower, U.S.-China talks in focus; Alphawave soars Wolfe Research downgrades Equinix on valuation concerns after strong rally 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
20-05-2025
- Automotive
- Yahoo
BNP Paribas Maintains Overweight on Rivian (RIVN) Stock, Lifts PT
On Monday, May 19, BNP Paribas Exane analyst James Picariello raised the price target on Rivian Automotive, Inc. (NASDAQ:RIVN) from $18 to $20 and kept an 'Outperform' rating. The analyst highlighted the company's gross profit improvement and its ability to tackle the changing tariffs environment. A state-of-the-art electric vehicle charging at a station at a suburban mall. Picariello praised Rivian Automotive, Inc.'s (NASDAQ:RIVN) approach with the R1 and noted that the company is not chasing after volume sales by compromising on the average selling price (ASP). According to Picariello, this strategy puts the company in a strong position for the anticipated launch of the R2 model in Q1 2026. The R2 is also expected to benefit from political support, unlike competitors like Tesla who are facing more scrutiny. The analyst is also confident that Rivian Automotive, Inc. (NASDAQ:RIVN) has a clear path to sustainable free cash flow (FCF). Picariello noted that there is a growing likelihood that the company will be able to secure a $6.6 billion loan from the Department of Energy (DoE). This funding can play a vital role for fully supporting operations at the Georgia manufacturing plant. Additionally, Picariello noted that Rivian Automotive, Inc.'s (NASDAQ:RIVN) financial strategy includes using liquidity from partnerships with Volkswagen and the DoE loan. These resources are expected to provide the capital needed for the company's expansion and operations. Rivian Automotive, Inc. (NASDAQ:RIVN) is an American electric vehicle manufacturer that currently offers the R1T electric pickup truck and the R1S electric SUV. The company aims to launch its cheaper R2 SUV in the first half of 2026 and has plans to make new additions to its lineup with the R3 and R3X SUVs in 2026 and 2027. While we acknowledge the potential of RIVN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RIVN and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds. Disclosure: None. 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
20-05-2025
- Automotive
- Yahoo
BNP Paribas Maintains Overweight on Rivian (RIVN) Stock, Lifts PT
On Monday, May 19, BNP Paribas Exane analyst James Picariello raised the price target on Rivian Automotive, Inc. (NASDAQ:RIVN) from $18 to $20 and kept an 'Outperform' rating. The analyst highlighted the company's gross profit improvement and its ability to tackle the changing tariffs environment. A state-of-the-art electric vehicle charging at a station at a suburban mall. Picariello praised Rivian Automotive, Inc.'s (NASDAQ:RIVN) approach with the R1 and noted that the company is not chasing after volume sales by compromising on the average selling price (ASP). According to Picariello, this strategy puts the company in a strong position for the anticipated launch of the R2 model in Q1 2026. The R2 is also expected to benefit from political support, unlike competitors like Tesla who are facing more scrutiny. The analyst is also confident that Rivian Automotive, Inc. (NASDAQ:RIVN) has a clear path to sustainable free cash flow (FCF). Picariello noted that there is a growing likelihood that the company will be able to secure a $6.6 billion loan from the Department of Energy (DoE). This funding can play a vital role for fully supporting operations at the Georgia manufacturing plant. Additionally, Picariello noted that Rivian Automotive, Inc.'s (NASDAQ:RIVN) financial strategy includes using liquidity from partnerships with Volkswagen and the DoE loan. These resources are expected to provide the capital needed for the company's expansion and operations. Rivian Automotive, Inc. (NASDAQ:RIVN) is an American electric vehicle manufacturer that currently offers the R1T electric pickup truck and the R1S electric SUV. The company aims to launch its cheaper R2 SUV in the first half of 2026 and has plans to make new additions to its lineup with the R3 and R3X SUVs in 2026 and 2027. While we acknowledge the potential of RIVN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RIVN and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds. Disclosure: None.
