Stock Market Roundup & Ratings for December 12th

ORCL stock forecast

Top Stock News

Bank of Canada:

  • Situation: Recent drop in long-term borrowing costs may complicate Bank of Canada’s efforts to control inflation and could delay potential interest rate cuts.
  • Concerns: Analysts suggest that if the decline in borrowing costs leads to a resurgence in the housing market, it might hinder the central bank’s ability to address inflation effectively.

TD Bank Group:

  • Change in Leadership: Ray Chun named the new head of TD Bank Group’s Canadian personal banking business after the unexpected exit of Michael Rhodes, a potential CEO candidate.

Shopify Inc:

  • Increased Stake: Canadian e-commerce giant Shopify discloses a 44.36% stake in marketing and automation firm Klaviyo, strengthening its position in the industry.

Rogers Communications:

  • Stake Sale: Rogers Communications sells its shares in Cogeco and Cogeco Communications to Canada’s second-largest pension fund Caisse de dépôt et placement du Québec (CDPQ) for C$829 million.

Epic Games vs. Google:

  • Antitrust Victory: Epic Games prevails in an antitrust case against Google over the Play app store, potentially reshaping the entire app store economy.

Pfizer’s Seagen Deal:

  • Approval: Pfizer gets approval for its $43-billion deal with Seagen after agreeing to donate the rights of royalties from sales of cancer drug Bavencio.

Apple’s Gesture in EU Antitrust Case:

  • Offer to Rivals: Apple offers to let rivals access its tap-and-go mobile payments systems to settle EU antitrust charges and avoid a hefty fine.

Boeing’s Strategy Cuts:

  • Deeper Cuts: Boeing deepens cuts in its strategy ranks, halving the number of planners working within key divisions, focusing on addressing industrial pressures.

JPMorgan’s Outsourcing Plan:

  • Custody Business Outsourcing: JPMorgan to outsource $500 billion custody business in Hong Kong and Taiwan, with Citigroup, HSBC, and Standard Chartered in the running.

Oracle’s Revenue Forecast:

  • Below Estimates: Oracle forecasts quarterly revenue below estimates, citing an uncertain economy and cloud computing market competition.

Pfizer’s Deal with Icosavax:

  • Acquisition: AstraZeneca agrees to buy Icosavax, a respiratory syncytial virus (RSV) vaccine developer, in a deal valued at up to $1.1 billion.

Bristol-Myers Squibb’s Partnership:

  • $800 Million Deal: Bristol-Myers Squibb will pay $800 million upfront and up to $8.4 billion to Sichuan Biokin Pharmaceutical to develop and commercialize a cancer treatment.

Centene Corp’s Outlook:

  • Profit Forecast Increase: Centene Corp increases its 2024 adjusted profit forecast and authorizes a $4 billion increase to its stock repurchase program.

Netflix’s Outage:

  • Technical Issues: Netflix experiences technical issues leading to an outage for thousands of users in the U.S., later resolved.

Nokia’s Margin Target Revision:

  • Revised Margin Target: Nokia revises down its comparable operating margin target to at least 13% by 2026, citing market conditions and a lost deal with a U.S. telecom carrier.

Rio Tinto’s Energy Resources of Australia Provision:

  • Increased Provision: Energy Resources of Australia (ERA), majority-owned by Rio Tinto, expects a bigger provision of about $1.51 billion related to the rehabilitation of its Ranger uranium oxide mine.

Sanofi’s Deal Termination:

  • Exclusive License Termination: Sanofi terminates a deal to exclusively license a drug developed by Maze Therapeutics to treat Pompe disease, following objections from the U.S. government.

Tesla’s Autopilot Defense:

  • “Moral Obligation”: Tesla asserts its “moral obligation” to continue improving its Autopilot system, citing data showing improved safety metrics when the feature is engaged.

Uber and Carrefour Collaboration:

  • Charging Points Access: Uber collaborates with Carrefour to allow drivers to access the French supermarket chain’s charging points for electric vehicles.

Unilever’s Environmental Claims Scrutiny:

  • Competition Watchdog’s Review: The UK’s Competition and Markets Authority (CMA) scrutinizes environmental claims made by Unilever about certain household essential items, addressing concerns about potential greenwashing.

Walt Disney and Reliance Industries Merger:

  • Media Operations Merger: Reliance Industries and Walt Disney are finalizing details for a non-binding term sheet to merge their Indian media operations, with Viacom18 absorbing Disney’s Star India.

British Firms’ Concerns on China’s Economy:

  • Challenges: Sixty percent of British firms express concerns that a slowing Chinese economy poses a greater challenge to their operations than previous strict COVID curbs.

Timo Herzberg Removal from Duties:

  • Immediate Removal: Timo Herzberg, CEO of Signa Prime Selection AG and Signa Development Selection AG, is removed from his duties with immediate effect.

EU Scrutiny on AI Rules:

  • Details Negotiation: Experts from EU countries and lawmakers are meeting to hammer out details of artificial intelligence rules after a provisional deal is reached.

Top Analyst Ratings:

Adobe Inc (ADBE):

  • JPMorgan’s Target Price Raise: JPMorgan has increased its target price for Adobe Inc from $530 to $600.
  • Reasons for the Raise:
    • Intra-Quarter Commentary: The target price revision is influenced by Adobe’s positive intra-quarter commentary, suggesting strong performance and growth within the quarter.
    • Favorable Partner Feedback: Positive feedback from partners regarding Adobe’s products and services contributes to the optimistic outlook.
    • Healthy Traffic Data: Positive trends in traffic data, indicating increased user engagement and potentially higher adoption of Adobe’s offerings.

Coinbase Global Inc (COIN):

  • Piper Sandler’s Target Price Increase: Piper Sandler has raised the target price for Coinbase Global Inc from $80 to $125.
  • Factors Behind the Increase:
    • Higher Transaction Revenue: The expectation of increased transaction revenue driven by higher trading volumes in the cryptocurrency market.
    • Subscription and Services Revenues: Anticipation of growth in subscription and services revenues, influenced by higher interest rates.

Martin Marietta Materials Inc (MLM):

  • JPMorgan’s Rating Upgrade: JPMorgan has upgraded its rating for Martin Marietta Materials Inc from neutral to overweight.
  • Reasons for the Upgrade:
    • Attractive Geographic Exposure: Martin Marietta Materials’ operations in states that are expected to outperform the national average, providing the company with a competitive advantage.
    • Midterm Growth Potential: Recognition of attractive midterm growth potential in the regions where the company operates.

Oracle Corp (ORCL):

  • Barclays’ Target Price Cut: Barclays has reduced its target price for Oracle Corp from $147 to $140.
  • Reasons for the Cut:
    • Concerns About OCI Growth: Lower growth in Oracle Cloud Infrastructure (OCI) during the second quarter is identified as a concern for the company’s investors.

Visa Inc (V):

  • Jefferies’ Target Price Increase: Jefferies has raised the target price for Visa Inc from $280 to $295.
  • Factors Driving the Increase:
    • Strong Competitive Position: Acknowledgment of Visa’s strong competitive position in the payments industry.
    • Pricing Power: Recognition of Visa’s ability to set competitive pricing.
    • Expansion into New Payment Flows: Positive outlook on Visa’s expansion into new payment flows.
    • Value-Added Services: Expectation of growth in value-added services provided by Visa.

Fortis Inc:

  • JPMorgan’s Target Price Reduction: JPMorgan has lowered its target price for Fortis Inc from C$54 to C$53.
  • Reason for the Reduction:
    • Scrutiny by Rating Agencies: The reduction is attributed to increased scrutiny of Fortis Inc by rating agencies.

Manulife Financial Corp:

  • RBC’s Target Price Increase: RBC has increased its target price for Manulife Financial Corp from C$32 to C$34.
  • Reason for the Increase:
    • Re-Insurance Deal: Recognition of the positive impact of Manulife’s re-insurance deal with Global Atlantic, leading to a reduction in its long-term care exposure.

Stelco Holdings Inc:

  • JPMorgan’s Rating Upgrade: JPMorgan has upgraded its rating for Stelco Holdings Inc from neutral to overweight.
  • Reason for the Upgrade:
    • Strong Near-Term Pricing Environment: Positive outlook on Stelco’s near-term pricing environment, which is expected to drive free-cash-flow generation.

These analyst actions reflect the evolving assessments of these companies based on various factors, including financial performance, market conditions, and strategic developments. Investors often consider such analyses and target price changes when making investment decisions.

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