Analysts Stocks

      Daily Update - Jan 30, 2023

      Selected highlights of the day

      By: Matthew Otto

      Berenberg weighs on Tesla and General Motors

      MarketWatch reported that Berenberg analyst Adrian Yanoshik has made some substantial changes to stock ratings in the automotive field. Specifically,

      • Yanoshik upgraded Tesla to Buy from Hold rating while he downgraded the price target from $255 to $200.
      • Yanoshik lowered General Motors to Hold from Buyand cut GM’s price target from $45 to $41.

      In this same associated areas study regarding accessibility and demand for automobiles Yanoshik highlighted that macroeconomic pandemics amongst global citizens may very well sizeable heighten these salient issues whilst inversely leveraging production scales respectively impacting larger discussions surrounding the supply chain crisis unfolding.

      Yanoshik has identified a challenging market dynamic that may cause difficulty for automakers in 2023. He projects prices from suppliers to increase while car prices start to decrease, leading him to downgrade shares of GM stocks as a precautionary measure. Despite the odds being stacked against them, Tesla’s cost structure and product momentum will allow it to stay competitive with high-teens operating margins even when expanding production at higher-cost locations – not least because of their strong presence in China (25%-30% sales) which is expected rebound post Covid implications.

      AMZN

      As Amazon.com prepares to report earnings of 17 cents and revenue of $145.6 billion on Thursday, analysts remain divided in their outlook for the company:

      • Barclays Ross Sandler maintains an Overweight rating.
      • Credit Suisse Stephen Ju sets an Outperform rating and raises his price target from $142 to$171.

      On top of this financial news, Prime members will now have delivery fees applied to online grocery orders under $150 since of February 28th;

      REGN

      The European Commission has approved Dupixent® (dupilumab)—the world’s first targeted medicine—to treat severe, uncontrolled eosinophilic esophagitis in adults and adolescents. Data from its pivotal trial showed that over 60% of patients achieved histological disease remission upon treatment with 300 mg weekly dosage; furthermore, the trial also demonstrated a significant improvement in swallowing ability compared to placebo. With this approval, Dupixent is now an option for 50 thousand people living with EE within the EU whilst it can be used to manage five additional diseases driven by type 2 inflammation as well.

      • The news has spurred Cowen & Co analyst Tyler Van Buren who has upgraded Regeneron Pharmaceuticals‘ market performance to Outperform and raised his price target from $775 to $875.

      AXTA

      Analysts from multiple firms have made adjustments to their ratings of Axalta Coating Systems respectively.

      • BMO Capital analyst John McNulty maintained an Outlook of Outperform and adjusted his price target from $34 to $35.
      • Barclays analyst Michael Leithead held a rating of Overweight with an updated price range from $30 to $33.
      • Deutsche Bank analyst David Begleiter upgraded from Hold to Buy with a target price level at $40.
      • Citigroup analyst PJ Juvekar upgraded from Neutral to Buy while adjusting the price target from $30.29 to $35.19.
      • Wells Fargo for an EqualWeight rating with a new price target of $29 up from $23.

      SHOP

      Last week, Shopify announced an adjustment to their prices; the Basic plan will increase to $39 per month, up from the previous price of $29. Further, the Shopify plan will now cost $105 per month instead of the original $79 and the Advanced Plan moves to a price point of $399 from its original rate of $299. Merchant’s that utilize Shopify need not worry, as these increases will not come into effect for another three months.

      Shopify has three plans for customers to choose from. Firstly is their Basic plan, which includes features such as basic reports and staff accounts numbering two in total. For more comprehensive features, the second is their Shopify plan; this includes access to professional reports and personnel accounts capped at five in number. Those after maximum performance can opt for the Advanced plan which gives access to a custom report builder netting them 15 staff accounts in addition to other extras.

      • Roth Capital Darren Aftahi gave a buy recommendation and increased his price target from $38 to $56.