Market Movers: Industrial Growth Favorites and Earnings Surprises
The industrial growth sector is abuzz with excitement as General Electric’s aerospace division, GE Aerospace, takes center stage. Following a stellar earnings report, multiple analysts have boosted their price targets, sending shares soaring 6.6%. JPMorgan and UBS are among the firms that have increased their targets to $210 and $235 per share, respectively.
Guggenheim Sounds Caution on GE Vernova
Meanwhile, Guggenheim has taken a contrarian view on GE Vernova, downgrading the gas and wind turbine maker to neutral from buy. The analysts believe that the easy money has already been made, and investors should exercise caution.
Discover and Capital One: A Match Made in Heaven?
Discover’s earnings beat has led to price target increases from Barclays and Wells Fargo, with the firms setting their sights on $209 and $214 per share, respectively. The pending acquisition by Capital One is expected to close this year, making it an intriguing stock to watch.
Catalysts for Growth in 2025
In a recent meeting, we highlighted key catalysts that could drive growth for 33 portfolio stocks in 2025. These include a revamped Alexa and an acceleration at VMWare, which could expand companywide margins for parent Broadcom.
Boeing’s Fourth-Quarter Woes
Boeing’s shares took a hit, falling over 1% after the airplane maker preannounced an expected $4 billion loss for the fourth quarter. Labor stoppages and supply chain problems contributed to the disappointing financial picture.
Novo Nordisk’s Obesity Breakthrough
Novo Nordisk’s shares surged over 13% after its next-generation obesity injection generated 33% weight loss on average in an early-stage trial. The company’s new drug, amycretin, mimics a hormone produced by the pancreas, offering a promising solution for obesity treatment.
Twilio’s Turnaround
Twilio’s shares skyrocketed 17% after the communications software provider offered an upbeat profit outlook at an investor event. The company has faced activist pressure in recent years, but its partnership with OpenAI on its ChatGPT call service could be a game-changer.
Apple’s Price Target Cut
Bank of America has cut its price target on Apple to $253 per share from $256, citing weaker guidance expectations for the current quarter. However, with estimate revisions across Wall Street, the consensus may soon be within reach for Apple to beat.
Texas Instruments’ Subpar Earnings
Texas Instruments’ shares fell about 4% after the company provided suboptimal earnings guidance. Inventory builds are contributing to margin pressures, but Citi analysts believe the weakness presents a buying opportunity.
Mastercard’s AI Advantage
Piper Sandler has upped its price target on Mastercard to $591 per share from $575, citing the company’s potential to benefit from AI-driven margin improvements. The firm also hiked its price target on peer Visa to $368 from $322.
Leave a Reply