Selected stock price target news of the day - June 12, 2023

By: Matthew Otto

NIO Reports Narrower-Than-Expected Loss in Q1, Boosts Investor Confidence

 

Chinese electric vehicle maker NIO reported a narrower-than-expected adjusted loss in its fiscal first quarter, which has provided some relief to investors. NIO’s adjusted per share loss was 36 cents, with sales amounting to $1.6 billion. Analysts had anticipated a loss of 39 cents per share on sales of $1.7 billion. In the same period last year, the company reported a loss of 12 cents per share from $1.5 billion in sales.

Overall gross profit margins for the first quarter stood at 1.5%, down from 3.9% in the fourth quarter and significantly lower than the 14.6% reported a year ago. While the numbers were in line with analysts’ expectations, they do not indicate substantial growth. Steven Wei Feng acknowledged the changing market environment and emphasized the need to analyze the competitive landscape promptly, strengthen competitive advantages, optimize cost structure, and improve operating efficiency.

Mizuho analyst Vijay Rakesh had anticipated a weak quarter, but the results were slightly better than expected. NIO projects delivering 10,000 to 12,000 vehicles in June, up from 6,155 vehicles delivered in May. This would bring second-quarter deliveries to approximately 23,000 to 25,000 units, down from 31,041 units delivered in the first quarter of 2023.

Over the past year, NIO’s stock has declined by approximately 59% due to increased competition, falling EV prices, and slower sales growth, leading to diminished investor enthusiasm.

Analyst Reactions to NIO’s Q1 Results: Price Targets Lowered but Overall Sentiment Remains Positive

 

  • Mizuho analyst Vijay Rakesh maintains a Buy rating but lowers the price target from $25 to $20.
  • Following NIO’s Q1 results, analysts have revised their forecasts, expressing concerns.
  • Citigroup analyst Jeff Chung maintains a Buy rating but reduces the price target from $13.4 to $11.5.
  • JP Morgan analyst Nick Lai maintains a Neutral rating and lowers the price target from $10 to $8.5.
  • BofA Securities analyst Ming Hsun Lee maintains a Buy rating but decreases the price target from $12 to $11.
  • Jefferies analyst Xiaoyi Lei lowered the price target to HK$52.74.
  • Nomura analyst Frank Fan downgraded from Buy to Neutral.

 

Analyst Nick Lai (JP Morgan)  has currently the highest performing score on NIO with 4/8 (50%) price target fulfillment ratio. His price targets carry on average an $8.95 (25.00%) potential upside and are fulfilled within an average of 15 days.

FDA Unanimously Backs Alzheimer’s Drug Leqembi, Paving Way for Potential Approval Without Major Safety Warnings

The Alzheimer’s drug, Leqembi,of Biogen has received unanimous support from the FDA’s panel of advisors. This development increases the possibility of the drug receiving a traditional approval without major new safety warnings.

 

  • Highly Significant Slowing of Cognitive and Functional Decline (27%, p=0.00005) compared to placebo over 18 months
  • Significant Treatment Effects Observed for All Validated Secondary Endpoints
  • Common Adverse Events: Infusion Reactions, ARIA-H, ARIA-E, Headache, and Fall
  • Infusion Reactions Mostly Mild-to-Moderate (96% grade 1-2), Occurring on First Dose
  • Results Presented at CTAD Conference and Published in The New England Journal of Medicine

 

Analyst Upgrades on Biogen (BIIB)

  • Oppenheimer analyst Jay Olson maintains an Outperform rating and raises the price target from $350 to $360.
  • Canaccord Genuity analyst Sumant Kulkarni keeps a Buy rating and raises the price target from $330 to $350.
  • Needham analyst Ami Fadia reiterates a Buy rating and a price target of $321.
  • HC Wainwright analyst Andrew Fein maintains a Buy rating and a price target of $325.

 

Analyst Brian Skorney (BAIRD) has currently the highest performing score on BIIBwith 13/17 (76.47%) price target fulfillment ratio. His price targets carry on average an $25.22 (9.40%) potential upside and are fulfilled within an average of 201 days.

 

Adobe Introduces Subscription-Based Version of AI Tool Firefly

Adobe announced last week a series of new AI software tools and is introducing a pricing model to offset the computing time consumed by these tools. A notable feature is a website called Firefly, which offers tools for editing images in Photoshop and creating new images from text commands. Since its launch in March, beta users have generated over 200 million images.

To monetize these tools, Adobe recently unveiled Firefly for Enterprise, a subscription-based version targeting commercial customers. Adobe assures businesses that the AI-generated content is “commercially safe,” and offers indemnification against potential trademark infringement for content created on Firefly’s Enterprise version.

Adobe also plans to implement usage limits on the free version of Firefly and develop a subscription-based version for consumers. The company is integrating generative AI capability across its marketing software tools, leveraging multiple large language models, to assist brands in generating and modifying text-based experiences.

  • Evercore ISI Group analyst Kirk Materne maintains an Outperform rating and raises the price target from $425 to $475.
  • Jefferies analyst Brent Thill keeps a Buy rating and raises the price target from $440 to $530.
  • Morgan Stanley analyst Keith Weiss reiterates an Equal-Weight rating and raises the price target from $385 to $470.
  • Wolfe Research analyst Alex Zukin maintains an Outperform rating and raises the price target from $420 to $540.

Analyst Karl Keirstead (UBS) ) has the highest performing score on ADBE with 7/11 (63.64%)) price target fulfillment ratio. His price targets carry on average an $51.91 (10.75%) potential upside and are fulfilled within an average of 116 days.

 

Daily stock Analysts Top Price Moves Snapshot