Morning Brew: VinFast Revs Up on Outperform Rating, NIO Partners for EV Tech
Shares of VinFast Auto Ltd. (NASDAQ:VFS) surged after receiving an Outperform rating from Wedbush Securities. Analyst Dan Ives, who visited the company's facilities in Vietnam, praised the electric vehicle maker's impressive factory and foundational EV technology. Despite skepticism due to VinFast's SPAC origins, Wedbush's bullish stance is based on years of R&D and a solid supply chain, setting the company apart in the EV space.
C3.ai (NYSE:AI) experienced a premarket uptick as Oppenheimer upgraded the enterprise software company to outperform, with a $40 price target. Analyst Timothy Horan expects revenue growth to accelerate and margins to expand, highlighting C3.ai's positioning as a key player in the durable AI theme, especially following developer days from OpenAI and Microsoft (MSFT).
Broadcom (NASDAQ:AVGO) saw its shares dip following China's conditional approval of its VMware (NYSE:VMW) merger. The approval from China's State Administration of Market Regulation hinges on the combined entity not abusing its market position. The deal is expected to close imminently, marking a significant step in the ongoing tech tensions between the U.S. and China.
Gold prices (XAUUSD:CUR) are projected to reach new heights, according to TD Securities' senior commodity strategist Daniel Ghali. With expectations of a U.S. recession and a potential pause in Federal Reserve rate hikes, gold could rally towards $2,100 an ounce by the first half of 2024, nearing its all-time high.
Short-sellers may be caught off-guard by the rapid equity rally, suggests Citi's quant team. The S&P 500 (SP500) has exited correction territory, and the unwinding of short positions could fuel further market gains. This unexpected recovery has left many legacy short positions at a loss, increasing the likelihood of a short squeeze.
Goldman Sachs' equity team sees an opportunity in cyclicals for 2024, predicting that recession risks will diminish. With Goldman's economists estimating only a 15% chance of a U.S. recession, they suggest looking for tactical opportunities in undervalued cyclicals that could benefit from positive economic surprises.
Visa (V) President and CTO Rajat Taneja sold a significant number of shares, while the company's stock price saw a slight decrease. This move comes amidst Visa's continued financial performance and strategic initiatives.
Medtronic (MDT) raised its full-year outlook after a strong Q2 performance, driven by its diabetes segment. Despite competitive pressures from weight loss drugs, the medical device maker's broad-based growth across its business divisions has been resilient.
OneMain Holdings (OMF) announced the acquisition of Foursight Capital from Jefferies Financial Group (JEF), expanding its auto lending business. The deal includes a loan portfolio and the integration of Foursight's employees into OneMain.
Cloudflare (NET) received an upgrade from Oppenheimer, bolstered by its promising position in artificial intelligence. The firm set a price target of $85, citing strong demand for Cloudflare's edge compute platform and its potential in AI applications.
OpenAI's board considered leadership changes and potential mergers, with Anthropic's CEO approached to replace Sam Altman. Despite declining the offer, the discussions highlight the intense competition and strategic moves within the AI industry, with Microsoft (MSFT) playing a key role.
Equinix (EQIX) was upgraded by Oppenheimer to Outperform, as the digital infrastructure company is expected to capitalize on the AI boom. The firm views Equinix as a critical player in the internet/cloud switch market, with a unique data center network.
Lowe's Companies (LOW) saw its shares fall after reporting a decline in comparable sales and missing revenue expectations. The company cited a decrease in DIY spending but noted positive performance in its Pro customer segment.
Groupon (GRPN) saw insider buying activity, with a 10% owner acquiring a substantial number of shares. This follows a series of insider trades over the past year, reflecting ongoing interest in the company's stock.
NIO (NIO) entered a partnership with Changan Automobile to develop electric vehicles with battery swapping technology. This strategic move aims to enhance NIO's profitability and competitiveness in the EV market.
Western Digital (WDC) received an upgrade from Goldman Sachs to Neutral, with improved outlook on NAND and HDD fundamentals. The firm raised its price target, anticipating a positive earnings revision cycle due to better supply-demand dynamics in the memory market.
This article first appeared on GuruFocus.
