Selected stock price target news of the day - January 6th, 2025

By: Matthew Otto

Boeing Outlines Safety and Quality Improvements Amid Ongoing Challenges

Boeing has released an update on its efforts to improve safety and manufacturing quality. Key measures include addressing over 70% of employee suggestions from recent quality training, forming cross-functional teams to resolve issues. Additionally implementing “move ready” criteria to reduce inefficiencies caused by “traveled work,” where tasks are completed outside their designated assembly areas. These actions follow the January 5, 2023, incident in which an emergency door on a 737 MAX 9 jet failed mid-flight, highlighting ongoing manufacturing challenges.

Boeing last posted a full-year profit in 2018, earning $16 per share, but has since recorded cumulative losses exceeding $33 billion between 2019 and 2024. This is primarily due to a significant drop in plane deliveries—2,250 jets in that period compared to 4,450 in the six years prior.

It is predicted that Boeing will deliver approximately 570 planes in 2025. But Boeing must first overcome FAA-imposed limits on 737 MAX production, currently capped at 38 units per month.

Boeing’s legal challenges persist as the U.S. Department of Justice (DOJ) and Boeing revisions to a plea agreement following the rejection of a previous deal in December. The original plea, part of a resolution over two fatal 737 MAX crashes in 2018 and 2019 that killed 346 people, included a $487.2 million fine and $455 million for safety improvements.

Analyst Upgrades Rating, Citing Progress in Safety and Production Goals

Barclays analyst David Strauss upgraded from Equal-Weight to Overweight and the price target from $190 to $210.

Which Analyst has the best track record to show on BA?

Analyst Cai Von Rumohr (TD COWEN) currently has the highest performing score on BA with 14/25 (56%) price target fulfillment ratio. His price targets carry an average of $41.01 (27.53%) potential upside. Boeing stock price reaches these price targets on average within 271 days.

DraftKings Introduces Subscription Service with Boosted Odds in New York

DraftKings has launched a subscription service, DraftKings Sportsbook+, on December 28, 2024, for select customers in New York. The service, priced at $20 per month, offers profit boosts on winning parlay bets, with percentages tied to the number of legs in the parlay. For example, a two-leg parlay is eligible for a 10% boost, a six-leg parlay for 50%, and an 11-leg parlay for a maximum 100% boost. The profit boost applies only to bets up to $25. As part of the rollout, DraftKings is offering the first month free, after which the subscription fee applies.

New York, a top market for online gaming, imposes a 51% tax rate on sports wagering revenue. As of October 2024, New York had generated over $1.5 billion in sports betting revenue, according to state data.

Analyst Adjusts Price Target Amid New Subscription Service Rollout

JMP Securities analyst Jordan Bender maintained a Market Outperform rating and lowered the price target from $52 to $50.

Which Analyst has the best track record to show on DKNG?

Analyst Shaun Kelley (BAML) currently has the highest performing score on DKNG with 9/10 (90%) price target fulfillment ratio. His price targets carry an average of $13.16 (35.72%) potential upside. DraftKings stock price reaches these price targets on average within 86 days.

Microsoft to Invest $80 Billion in AI Data Center Expansion for Fiscal 2025

Microsoft has announced plans to allocate $80 billion in fiscal 2025 to develop data centers that support artificial intelligence (AI) model training and cloud-based applications.

According to analysts at Visible Alpha, Microsoft’s fiscal 2025 capital expenditure, including capital leases, is projected to reach $84.24 billion. In the first quarter of the fiscal year, Microsoft reported a 5.3% increase in capital expenditure, amounting to $20 billion. Notably, over half of the $80 billion investment will focus on the U.S.-based infrastructure, as outlined in a blog post by Vice Chair and President Brad Smith.

Microsoft’s investment aligns with its exclusive partnership with OpenAI, the creator of ChatGPT, positioning it as a key player in the AI landscape. AI’s extensive computing requirements necessitate advanced data centers capable of linking thousands of chips in clusters. In the September quarter alone, Microsoft’s capital expenditures rose 79% year-over-year, reflecting its rapid scaling to meet the needs of AI innovation.

Analyst Boosts Price Target on AI Spending Outlook

Piper Sandler analyst Brent Bracelin maintained an Overweight rating and raised the price target from $470 to $520.

Which Analyst has the best track record to show on MSFT?

Analyst Mark Murphy (JPMORGAN) currently has the highest performing score on MSFT with 25/27 (92.59%) price target fulfillment ratio. His price targets carry an average of $58.65 (14.43%) potential upside. Microsoft stock price reaches these price targets on average within 117 days.