Tesla surged yet again as momentum in the EV maker and rivals continues. But it’s starting to flash multiple signals that it’s entering a climax run.
Tesla surged yet again as momentum in the EV maker and rivals continues. But it’s starting to flash multiple signals that it’s entering a climax run.
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The sell-off also led to major corrections for other cryptocurrencies including ether, stellar, xrp and chainlink.
Electric cars are growing in popularity, a trend fueled by social acceptance, the green mentality, and a recognition that the internal combustion engine does have its flaws. Some of those flaws are addressed by electric vehicles (EVs). They bring lower emissions, less pollution from the car, and the promise of high performance off the mark. For the present, the main drawbacks are the high cost and relatively short range of current battery technology. Even so, many consumers have decided that the benefits outweigh the costs, and EV sales are increasing. China, in particular, has long been known for its pollution and smog issues, and the government is actively pushing EVs as a possible ameliorating factor. In addition, EVs, with their quick acceleration and (usually) short range, are a ready fit with China’s crowded – and growing – urban centers. In a comprehensive review of the Chinese EV sector, Jefferies analyst Alexious Lee noted, "We are constructive on the outlook for NEV in China as the country pushes forward with the 'electrification to digitalization' trend. While global automakers' JVs are quickly rolling out new models of energy saving vehicles (HEVs and PHEVs) to comply with the top-down target to reduce annual Corporate Average Fuel Consumption (CAFC), Chinese automakers (both legacy and startups) are motivated to quickly accelerate the adoption of BEV with entry-level, city commuting models and premium-positioned advanced models." Against this backdrop, Lee has picked out one Chinese EV stock that is worth owning, and two that investors should avoid for now. We used TipRanks' database to find out what other Wall Street analysts have to say about the prospects of these three. Li Auto (LI) Chinese EV company Li Auto boasts of having the country’s single best-selling model of electric vehicle. The Li ONE sold 3,700 units this past October, bringing the total number sold in the first year of production to 22,000. At current sales and production rates, Li expects the company to double its annual sales number this year. That’s a big deal, in the world’s largest electric car market. China produces more than half of all EVs sold globally, and nearly all of the electric busses. Li Auto, founded in 2015, has focused on plug-in hybrids – models which can plug into a charging station to maintain the battery, but also have a combustion engine to compensate for low-density charging networks. The Li ONE is a full-size SUV hybrid electric that has rapidly found popularity in its market. Li Auto went public on the NASDAQ in July of 2020. In the IPO, the company started with a share price of $11.50, and closed the first day with a gain of 40%. In the months since, LI has appreciated 116%. Those share gains come as the company reported strong earnings. In 3Q20, the last quarter reported, LI showed US$363 million in sales, up 28% sequentially, and forming the lion’s share of the company’s US$369.8 million in total revenue. Also positive, Li reported a 149% sequential increase in free cash flow, to US$110.4 million. Lee is impressed with Li Auto’s technology, noting, “Li One’s EREV powertrain has proven a great success due to (1) extended range, (2) limited impact from low temp, (3) easier acceptance by car buyers. The advantage is sustainable ahead of the battery cost parity, estimated at FY25 (LFP) and FY27 (NMC), making LI AUTO the automaker to turn OCF positive and profitable earlier vs peers." The analyst added, "LI AUTO is the first in China to successfully commercialized extended-range electric vehicle (EREV) which is solution to drivers’ range anxiety and automakers’ high BOM. Powered by fuel, the ER system provides alternative source of electricity in addition to battery packs, which is significantly outstanding during low temp environment where BEVs may lose up to 50% of the printed range." Seeing the company’s technology as the key attraction for customers and investors, Lee initiated his coverage of LI with a Buy rating and a $44.50 price target. This figure implies 25% upside growth in the year ahead. (To watch Lee’s track record, click here) There is broad agreement on Wall Street with Lee that this stock is a buying proposition. LI shares have a Strong Buy consensus rating, based on 6 reviews, including 5 Buys and 1 Hold. The shares are priced at $35.60 and the $44.18 average price target is in-line with Lee’s, suggesting 24% upside for the next 12 months. (See LI stock analysis on TipRanks) Nio (NIO) Where Li Auto has the single best-selling EV model in China, competing company Nio is vying with Elon Musk’s Tesla for the top market-share spot in the Chinese EV market. With a market cap of $90 billion, Nio is the largest of China’s domestic electric car manufacturers. The company has a varied line-up of products, including lithium-ion battery SUVs and a water-cooled electric motor sports car. Two sedans and a minivan are on the drawing boards for future release. In the meantime, Nio’s vehicles are popular. The company reported 43,728 vehicle deliveries in 2020, more than double the 2019 figure, and the last five months of the year saw car deliveries increase for 5 straight months. December deliveries exceeded 7,000 vehicles. Nio’s revenues have been increasing steadily, and has shown significant year-over-year gains in the second and third quarters of 2020. In Q2, the gain was 137%; in Q3, it was 150%. In absolute numbers, Q3 revenue hit $654 million. However, with shares rallying 1016% over the past 52 weeks, there's little room for further growth -- at least according to Jefferies' Lee. The analyst initiated coverage on NIO with a Hold rating and $60 price target. This figure implies a modest 3% upside. "We use DCF method to value NIO. In our DCF model, we factor in solid volume growth, positive net profit from FY24 and positive FCF from FY23. We apply a WACC of 8.1% and terminal growth rate of 5% and come to target price of US$60," Lee explained. Overall, Nio holds a Moderate Buy rating from the analyst consensus, with 13 reviews on record, which include 7 Buys and 6 Holds. NIO is selling for $57.71, and recent share gains have pushed that price just slightly below the $57.79 average price target. (See Nio stock analysis on TipRanks) XPeng, Inc. (XPEV) XPeng is another company, like Li, in the mid-range price level of China’s electric car market. The company has two models in production, the G3 SUV and the P7 sedan. Both are long-range EV models, capable of driving 500 to 700 kilometers on a single charge, and carry advanced autopilot systems for driver assistance. The G3 started deliveries in December 2018; the P7, in June 2020. In another comparison with Li Auto, XPeng also went public in the US markets in summer 2020. The stock premiered on the NYSE on the last day of August, at a price of $23.10, and in the IPO the company raised $1.5 billion. Since the IPO, the stock is up 127% and the company has reached a market cap of $37.4 billion. Increasing sales lie behind the share gains. XPeng reported 8,578 vehicles delivered in Q3 2020, a gain of 265% from the year-ago quarter. The bulk of those deliveries were P7 sedans – the model saw deliveries jump from 325 in Q2 to 6,210 in Q3. Strong sales translated to revenues of US$310 million for the quarter, a truly impressive gain of 342%. Jefferies' Lee sees XPeng as a well-positioned company that has possibly maxed out its short-term growth. He writes, “XPENG has a very strong exposure to tech-driven growth… While we favor its specialty in autonomous driving and power consumption efficiency, our FY21 forecast of 120% sales growth is lower than consensus while our FY22 forecast of 129% is higher given slower market acceptance and higher competition in Rmb200-300K segment.” To this end, Lee rates XPEV a Hold and his $54.40 price target suggests a minor upside of ~4%. The recent gains in XPEV have pushed the price right slightly above the average price target of $51.25; the stock is now selling for $52.46. This comes along with a Moderate Buy analyst consensus rating, based on 8 reviews, breaking down to 5 Buys, 2 Holds, and 1 Sell. (See XPEV stock analysis on TipRanks) To find good ideas for EV stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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(Bloomberg) -- Ant Group Co.’s valuation may be cut further under new measures proposed by China to curb market concentration in its online payments market, according to new estimates from Bloomberg Intelligence.Jack Ma’s fintech giant may be worth less than 700 billion yuan ($108 billion) under the draft proposals, which could reduce the value of Ant’s Alipay service by half, according to senior analyst Francis Chan. Earlier this month, Chan lowered his Ant valuation to less than 1 trillion yuan, from about 1.44 trillion yuan.“Ant Group’s valuation may plunge further if its payment unit is forced to break up due to potential anti-trust probes by China’s central bank,” Chan wrote in a research note.The revised estimate for Ant is a far cry from valuations that ran as high as $320 billion before the company was forced to scrap its record initial public offering in November. China’s crackdown forced Ma’s firm to withdraw the $35 billion IPO just days before its planned listing in Hong Kong and Shanghai.China’s central bank said on Wednesday that any non-bank payment company with half the market share for online transactions, or two entities with a combined two-thirds share could be subject to antitrust probes.If a monopoly is confirmed, the central bank can suggest the cabinet impose restrictive measures including breaking up the entity by its business type. Firms already with payment licenses would have a one-year grace period to comply with the new rules, the central bank said.Alipay, with about 1 billion users, controls 55% of the mobile payments market. A break up could reduce its 600 billion yuan valuation in half, Chan said, adding it’s questionable whether Ant can relaunch its IPO this year.Alibaba Group Holding Ltd., which holds a stake in Ant, fell 2.5% in Hong Kong after rallying 8.5% on Wednesday after Ma emerged in public for the first time since China began clamping down on his businesses, ending several months of speculation over his whereabouts.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
These are the top dividend stocks in the Russell 1000 with the highest forward dividend yield for February.
Shares of Obalon Therapeutics Inc. blasted six-fold higher on massive volume in afternoon trading Wednesday, after the weight loss technologies company announced an agreement to merge with weight loss solutions company ReShape Lifesciences Inc. . Obalon's stock rose 503.4% toward the highest close since JUne 2019, while trading volume soared to 395.4 million shares, compared with the full-day average of about 626,000 shares. The stock was the biggest gainer and most active on major U.S. exchanges on Wednesday. ReShape shares, which currently trade over the counter, rose 155%. When the merger is completed, ReShape shareholders will own 51% of the combined entity, and the company will be renamed Reshape Lifesciences Inc. and will trade on the Nasdaq under the ticker symbol "RSLS." "We are excited with this opportunity to add Obalon's FDA approved Balloon System to ReShape's line of minimally invasive weight-loss solutions while also expanding our market reach," said ReShape Chief Executive Bart Bandy. Obalon's stock has now rocketed 922.5% over the past three months while ReShape shares have soared 187.3% and the S&P 500 has gained 12.0%.
Ethereum, the second largest cryptocurrency behind bitcoin, could see a 650% rally to hit $10,500, according to analysts at Fundstrat.
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From "Dividend Aristocrats" to special situations, Ben Reynolds -- along with his co-editors Bob Ciura and Nikolaos Sismanis -- provides in-depth research on high-quality stocks through its four top-ranked newsletters. Scale is a critical competitive advantage in the industry. The company's durable competitive advantage -- and shareholder friendliness -- is on display with its long dividend history.
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On CNBC's "Mad Money Lightning Round," Jim Cramer said he would rather buy Penn National Gaming, Inc (NASDAQ: PENN) and Draftkings Inc (NASDAQ: DKNG) instead of Fubotv Inc (NYSE: FUBO).Cramer would be careful with Nano Dimension Ltd - ADR (NASDAQ: NNDM) because of a big move higher. These moves tend to have another leg up, but he doesn't want to be too aggressive.Canopy Growth Corp (NASDAQ: CGC) is a way to play the marijuana space, thinks Cramer.CIIG Merger Corp (NASDAQ: CIIC) is a good spec, said Cramer.Everything Michael Klein has been involved with, Cramer has liked it. But he thinks Churchill Capital Corp IV (NYSE: CCIV) is speculative.Quanta Services Inc (NYSE: PWR) has more room on the upside, thinks Cramer.See more from Benzinga * Click here for options trades from Benzinga * Tony Zhang Sees More Upside to GM, Lays Out Bullish Options Trade * Carter Worth And Mike Khouw's XLU Trade(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Nio stock jumped after the Chinese EV maker unveiled its first long-battery-life electric car in January. But is the stock a buy now?
The rally in BlackBerry stock continued for the fourth trading session in the wake of its global court settlement with Facebook over patent royalties. Terms of the settlement have not been disclosed.