Latest news with #RBCCapitalMarkets
CNBC
2 days ago
- Business
- CNBC
RBC raises S&P 500 target, but still sees a decline from current levels
The stock market outlook has improved, but only slightly, according to RBC Capital Markets. Head of U.S. equity strategy Lori Calvasina raised her year-end S & P 500 price target to 5,730 from 5,550 . That, however, still implies a decline of 3% from Friday's close. "Our new price target reflects our belief that the stock market is on a slightly better path than the one it was on in early April, when we cut our target for the second time this year, but not back to where it was in January or mid March," Calvasina wrote in a note to clients. Rising global trade tensions have left investors on edge in recent months. A swath of U.S. tariffs on imported goods dented investor confidence to start April. .SPX bar 2025-04-01 S & P 500 since April But a series of pauses and temporary reductions on those levies helped the market bounce back. Through Friday's close, the S & P 500 was only 3.8% below its all-time high set in February. The benchmark at one point was around 20% below that level. "The index has recouped most of that loss, which is telling us that the market never became convinced recession is at hand and believes a meaningful policy pivot has occurred on tariffs," Calvasina said. "Overall, both our valuation and EPS models bake in for the base case inflation in the upper 2% range, 3 Fed cuts starting in September, real GDP of 1.3% for the full year, margin contraction (more significant in the back half of the year than in 2Q), and some relief on interest expense driven in part by several cuts from the Fed starting in September," she added. "This is a better macro backdrop than the more severe stagflation scenario that we baked into our numbers back in early April, but is not as strong as the one we were baking in back in January." Calvasina also highlighted higher Treasury yields as a potential risk to the market going forward. She noted that a meaningful move above 5% in the benchmark 10-year note yield would pressure equities.
Yahoo
6 days ago
- Business
- Yahoo
RBC Keeps Outperform Rating on Williams Companies (WMB) Stock
On Tuesday, May 27, RBC Capital Markets maintained an 'Outperform rating' on The Williams Companies, Inc. (NYSE:WMB) with a price target of $63. This decision came after insights from the EIC Conference. RBC analysts are more confident in the company as it is expected to announce new projects that lead to improved financial estimates. Aerial view of a power plant near a lake lit up at night, showing off the company's expansive electricity generation capabilities. The Williams Companies, Inc. (NYSE:WMB) expects to see steady progress, even as Chad Zamarin becomes the new CEO. One key project is the development of Socrates, which is a fully integrated infrastructure project that will serve as the power solution for a connected data center. The Williams Companies, Inc. (NYSE:WMB) has signed a 10-year contract for Socrates, which includes a provision for commercial reassessment at the end of the term. The company believes that if the equipment from Socrates is used as backup power after the 10-year contract, the price will be set based on the cost of replacement. According to The Williams Companies, Inc. (NYSE:WMB), this will bring a good deal. The Socrates project is also seen as a strong venture, boasting a five times build multiple under the contract terms. RBC's reiterated positive outlook reflects the belief that these new projects and strategic developments will help The Williams Companies, Inc. (NYSE:WMB) grow and improve its financial performance. The Williams Companies, Inc. (NYSE:WMB) is an American energy company that specializes in natural gas processing and transportation. The company also has petroleum and electricity generation assets and invests in new energy technologies. While we acknowledge the potential of WMB 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 WMB and that has a 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
CNBC
6 days ago
- Business
- CNBC
RBC's Helima Croft on oil: Here are the major negotiations to monitor
Helima Croft, RBC Capital Markets, joins 'Power Lunch' to discuss the latest news regarding the oil and gas sectors.
Bloomberg
6 days ago
- Business
- Bloomberg
Emory Floats $1 Billion Bond Sale for Campus, Hospital Projects
By and Aashna Shah Save Emory University is considering borrowing more than $1 billion of municipal debt to finance projects for its campus and hospital system. The bond sale for the Atlanta-based private institution is expected in mid-June and will be managed by an underwriting group led by RBC Capital Markets, according to a securities filing that outlined the potential borrowing plan. The tax-exempt debt, which would be issued through Georgia's Private Colleges and Universities Authority, would also refinance outstanding obligations.
Yahoo
7 days ago
- Business
- Yahoo
Salesforce earnings are 'better than feared': AI impact in focus
Salesforce (CRM) stock is popping in extended trading after the company reported strong first quarter results, had better-than-expected sales, and lifted its full-year outlook. RBC Capital Markets software equity analyst Rishi Jaluria joins Market Domination with Julie Hyman and Josh Lipton to share his instant reaction to the earnings print. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. Rishi, always good to see you on the show. So, Salesforce reports, at least initially here, Rishi, investors like what they see. But let me get your, your instant reaction to these results. What do you make of them? Yeah, absolutely. And Josh, always a pleasure. Thanks so much for having me. Look, I, I think the, the numbers are better than feared, right? That is, I think the right way that I would think about it. Obviously there was kind of the concern with the Informatica deal that, are they buying growth? Are they trying to hide or slow down? But, you know, you saw a, a slight beat, you saw CRPO coming ahead of expectations, you know, the guide seems completely fine. And so that's kind of what, what I think is going on here. Why you're seeing the stock up. Now I think what's going to be really important on the earnings call itself, is defending this Informatica deal, you know, why it's necessary for them to own the asset and own the full data stack. Rishi, I'm gonna take a brief pause here to ask you to do a little jargon busting. CRPO, current remaining performance obligations, for people who are not intimately familiar with this company as you are, what does that mean? And why is it important? Absolutely. So thanks so much for keeping me honest. I, I get caught up in the Silicon Valley and Wall Street bubble, but at the end of the day, the thing is with all these SaaS companies, right, it's on a subscription model. And so you bill upfront for a year or, or however long, and then the revenue is recognized, you know, basically on a daily basis over the course of the contract. And so because of that, revenue is actually a backwards looking indicator to the point that in any given quarter, about 80% of your revenue was already booked ahead of time. It's not new business. And so current remaining performance obligations is a more forward looking indicator. It's what is kind of future business that's expected to be recognized. And that's the thing is with all these companies, you want to think about what's happening in the future, not what's happened in the past. And that's why we look more towards metrics like CRPO or billings or whatever have you, rather than just the reported revenue number. Rishi, listen, Salesforce is acquiring Informatica for about $8 billion. In your opinion, Rishi, is that a smart move by Mr. Benioff strategically and financially? I'm a little skeptical on it. Uh, you know, and I've wrote about this publicly. I think there's, there's a couple concerns I have. Number one is, you know, Informatica has gone through a little bit of a rough patch of their own. And yeah, they're getting it at a cheaper price, but it also feels like a different financial profile than what they were talking about a year ago. Number two is, I don't know that they need to own it. I, I get the thesis around, you know, having Informatica plus data cloud and MuleSoft, and what does that do to Agent Force, but what does this tell us about how the technology at Data, uh, Data Cloud is going if they felt that they needed to own Informatica? And maybe lastly, you know, unfortunately, Salesforce's recent track record with acquisitions hasn't been that strong. If we think about Slack and Tableau, you know, sure, a decade ago, when they were buying ExactTarget and Demandware, they've done well with those acquisitions. So I think there's just too many open questions on my mind right now to get fully behind the acquisition. I would love to be proven wrong. Rishi, I mentioned agentic AI as something that they obviously with Agent Force and everything else, they really are emphasizing here. How much of their business is related to that at this point? And then looking out, if you look a year from now, five years from now, how much of their business will be related to that? Yeah. So today, they gave a metric that somewhere near a billion dollars of ARR is coming from the entire AI and data solutions. So that would include Data Cloud, that would include some of their co-pilots, everything like that. Agent Force today is a de minimus part of revenue, right, as a standalone. And that's not surprising. One point that we've always said is as, even though we're huge bulls on generative AI and agentic AI, it is going to take years before this translates into real revenue. Right now we're all going through use case discovery, trying to figure out how to get the most value out of this, what efficiency does it drive? What cost savings do we have? But also what new revenue can we generate as a result of this? And so the hope is if Agent Force is as successful as our friend Mark wants it to be, it can be a meaningful part of the business. Like we could be talking double digits percent part of the business. And it should have indirect benefits on the rest of Salesforce as well, you know, including competitive win rates, expansions and customers. So altogether, that should, if it works as planned, lead to a better growth outlook and brighter growth algorithm than what we're seeing today. Rishi, always great to see you and to have you on the show. Thanks for joining us. Thank you so much. 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
