Latest news with #Redburn
Yahoo
03-07-2025
- Business
- Yahoo
Redburn lowers Adobe shares to Sell as GenAI erodes moat
-- Redburn Atlantic downgraded Adobe (NASDAQ:ADBE) shares to Sell from Neutral, flagging mounting risks to its competitive position as generative AI reshapes the creative software landscape. The broker also slashed its price target to $280 from $420. 'Adobe's moat is being eroded by tools including Sora, Veo, Imagen, Runway and Midjourney, which now dominate the ideation phase of the content creation process,' said Omar Sheikh, an equity analyst at Rothschild & Co Redburn. Sheikh notes that editing and workflow—the next two pillars of Adobe's moat—are also likely to face disruption, calling into question the company's ability to sustain pricing power. 'In this context, we think that to say Adobe faces significant AI disruption is not a controversial statement,' he wrote. Redburn expects Adobe's free cash flow (FCF) growth to slow to the low single digits by 2030, and now values the stock at 12x 2026 EV/FCF, compared to the current 17x. 'We now model FCF growth slowing from 8% pa in 2026 to 3% pa by 2030,' they said. The report outlines three strategic responses Adobe could pursue, including acquiring a frontier image generation model to bolster its proprietary GenAI model, Firefly, spinning off an AI-native subsidiary, or selling the company outright. However, the analysts believe none of these are likely to be executed in the near term. Sheikh also points out that Firefly lags behind leading alternatives in terms of output quality. They cited 'a performance gap' that could widen, pushing users toward superior tools from rivals like OpenAI and Google (NASDAQ:GOOGL). With Adobe trading at $387 and a market cap of $174 billion, the analyst believes 'the multiple deserves to contract further' as the company faces a potentially difficult transition period. Still, there are risks to this view, he added, including Adobe successfully pivoting using its strong cash flow or slower progress from AI competitors. Related articles Redburn lowers Adobe shares to Sell as GenAI erodes moat Cava rated Overweight on its potential to define Mediterranean fast casual Microsoft to lay off up to 9,000 employees in latest cut
Yahoo
29-06-2025
- Business
- Yahoo
Analyst Sees Amazon's (AMZN) ‘Azure Moment' Coming for AWS
Inc. (NASDAQ:) is one of the . On June 26, Redburn reiterated the stock as 'Buy' with a price target of $245. The firm said Amazon is 'resilient,' backed by its Amazon Web Services offering. Analysts believe that despite underperformance, AWS's growth will witness a rebound. This rebound is poised to be a major catalyst for the stock. 'Amazon shares have underperformed year-to-date, held back by weak AWS performance and tariff-related ecommerce concerns. However, our analysis indicates that AWS growth should comfortably exceed lowered expectations, enabling AWS to deliver its own Azure moment — a surprise reacceleration that resets expectations higher.' While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks in the Spotlight and 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
25-06-2025
- Business
- Yahoo
Nvidia's (NVDA) Next Earnings Could Be a Turning Point—Here's What to Expect
NVIDIA Corporation (NASDAQ:) is one of the . One of the biggest analyst calls on Monday, June 23, was for Nvidia Corporation. Redburn reiterated the stock as 'Buy,' stating that said company remains extremely well positioned ahead of its next earnings report on August 27. 'Nvidia reports July quarter earnings on 27 August, which should confirm rising networking attach rates, a smooth transition to Blackwell Ultra B300s and sustained further improvement in AI model capability and therefore AI capex investment.' In other news, Nvidia stock was edging down in Monday's premarket amid geopolitical and trade tensions. While big tech companies may be continuing to invest in artificial intelligence, benefiting stocks such as Nvidia, they may not rally any further until there is some clarity regarding the conflict in the Middle East and tariff negotiations. While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks in the Spotlight and Disclosure: None.
Yahoo
25-06-2025
- Business
- Yahoo
Nvidia's (NVDA) Next Earnings Could Be a Turning Point—Here's What to Expect
NVIDIA Corporation (NASDAQ:) is one of the . One of the biggest analyst calls on Monday, June 23, was for Nvidia Corporation. Redburn reiterated the stock as 'Buy,' stating that said company remains extremely well positioned ahead of its next earnings report on August 27. 'Nvidia reports July quarter earnings on 27 August, which should confirm rising networking attach rates, a smooth transition to Blackwell Ultra B300s and sustained further improvement in AI model capability and therefore AI capex investment.' In other news, Nvidia stock was edging down in Monday's premarket amid geopolitical and trade tensions. While big tech companies may be continuing to invest in artificial intelligence, benefiting stocks such as Nvidia, they may not rally any further until there is some clarity regarding the conflict in the Middle East and tariff negotiations. While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks in the Spotlight and 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
23-06-2025
- Business
- Yahoo
3 Things to Watch Ahead of the Nvidia Annual Meeting on June 25
Nvidia (NVDA) shares are keeping calm ahead of the AI darling's shareholder meeting scheduled for June 25 as the chipmaker is unlikely to deliver fireworks at its upcoming annual event. Still, there are three key things that investors will be watching on the coming Wednesday. Ahead of the shareholder meeting, NVDA stock is up more than 60% versus its year-to-date low set in April. The Next Trillion-Dollar Boom? 3 Stocks to Buy with 300 Million Humanoid Robots on the Horizon. Is Tesla a Buy or Sell as TSLA Stock Zooms on Austin Robotaxi Launch? These 3 Stocks Have Been Hot in 2025. Should You Sell Them Now Before It's Too Late? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Nvidia shareholders will vote to re-elect the company's board at the annual event on June 25. With no contested seats and a strong performance backdrop, the current directors are expected to cruise to reappointment on Wednesday. Additionally, investors will be watching advisory vote on executive compensation or what is more broadly known as 'say-on-pay.' NVDA CEO Jensen Huang earned nearly $50 million in fiscal 2025 – up roughly 47% from the prior year, largely driven by stock rewards. While the vote is non-binding, it helps with gauging investor sentiment toward Nvidia's leadership amidst its AI-fuelled surge. Lastly, shareholders will vote to ratify PwC as Nvidia's independent auditor on June 25. NVDA has been lucrative for investors over the past three months, but Redburn analysts continue to see significant further upside in the AI stock. On Monday, they maintained the chips giant at 'Buy,' saying its Q2 earnings release will likely 'confirm rising networking attach rates.' Plus, the quarterly update will indicate 'smooth transition to Blackwell Ultra B300s' and pave the way for Nvidia stock to print a new high by the end of 2025, the investment firm told clients in its research note. Redburn currently has a $178 price target on NVDA shares, which indicates potential for another 25% upside from current levels. Wall Street remains bullish at large heading into NVDA's annual shareholder meeting on June 25. According to Barchart, consensus rating on the company based out of Santa Clara, California remains at 'Strong Buy' with the mean target of about $175 suggesting potential upside of more than 20% from here. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 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
