Top Stock News
Tesla Recalls 2 Million US Vehicles Over Autopilot Safeguards: Tesla has initiated a recall for more than two million vehicles in the United States to address concerns related to the misuse of its Autopilot advanced driver-assistance system. This move comes after an extended investigation by the National Highway Traffic Safety Administration (NHTSA) into whether Tesla’s vehicles ensure that drivers remain attentive while using the Autopilot feature. As a corrective measure, Tesla plans to deploy an over-the-air software update that will introduce additional controls and alerts to reinforce the driver’s responsibility when Autosteer is engaged.
Dollarama Lifts Sales Forecast Amid Steady Demand: Discount store operator Dollarama has raised its annual sales forecast due to robust demand for household essentials and groceries. The company attributes this surge in demand to consumers turning to discount stores amidst rising inflation. Dollarama now anticipates comparable store sales growth of 11% to 12% for the fiscal year 2024, reflecting increased consumer preference for discounted goods. The company’s strong third-quarter sales performance, reaching nearly $1.48 billion, aligns with these positive projections.
Pfizer’s 2024 Forecast Below Wall Street Expectations: Pfizer has provided a 2024 revenue and profit forecast that falls below Wall Street expectations, leading to a dip in its premarket trading shares. Despite raising its cost-cut target by $500 million, the pharmaceutical giant faces skepticism from investors. The projected revenue range of $58.5 billion to $61.5 billion is below the average analyst estimate of $63.17 billion, signaling potential challenges for Pfizer in the coming years.
Southwest Airlines Raises Fuel Cost Forecast: Southwest Airlines has revised its forecast for fourth-quarter fuel costs, resulting in a premarket trading decline of its shares. The airline anticipates economic fuel costs of $3.00 to $3.10 per gallon, compared to its previous estimate of $2.90 to $3.00 per gallon. Despite this, Southwest remains optimistic about improved unit revenue for the quarter, driven by strong leisure demand. The airline adjusts its expectations for operating revenue per available seat mile (RASM), now predicting a decrease in the range of 9% to 10% year-over-year.
Google, Meta, Qualcomm Advocate for Open Digital Ecosystems: In response to new EU tech rules, Google, Meta Platforms, Qualcomm, and seven other tech companies have formed a coalition called the Coalition for Open Digital Ecosystems (CODE). This collaborative effort aims to support open platforms and systems to foster growth and innovation in Europe. The group, which includes major tech players, will work with policymakers, academics, and other companies to explore digital openness, particularly in the context of the Digital Markets Act (DMA) and future EU regulatory developments.
Divergent Financial Moves: Codorus Valley Bancorp, RB Global Inc, 3M Co & Corteva Inc: Codorus Valley Bancorp and Orrstown Financial Services are set to merge in an all-stock deal, creating a bank with $5.2 billion in assets. Meanwhile, industrial equipment auctioneer RB Global has appointed Eric Guerin as CFO, replacing the departed Eric Jacobs. In the legal realm, an Ohio resident is urging a U.S. appeals court to reconsider its ruling that terminated a class-action lawsuit against 3M, Corteva, and other companies accused of exposing people to toxic “forever chemicals.” The plaintiff argues that the decision may set a concerning precedent for chemical manufacturers facing similar claims.
Airbnb Settles Tax Obligations with Italian Revenue Agency: Airbnb has agreed to pay $620.58 million to the Italian Revenue Agency to settle outstanding host income tax obligations for the tax years 2017-2021. While not admitting liability, Airbnb’s settlement aims to resolve the tax issues cited by Italian prosecutors. The company’s unsuccessful legal challenge against the 2017 law concluded with a ruling by the EU Court of Justice in favor of the Italian government.
Ferrari and Philip Morris Collaborate on Carbon Footprint Reduction: Luxury sportscar maker Ferrari and tobacco company Philip Morris International are collaborating on a project called Ferrari E-Lab to study ways to reduce the carbon footprint of their factories in Italy’s Emilia-Romagna region. This initiative aligns with Ferrari’s commitment to become carbon-neutral by 2030 and its development of a fully-electric car expected in late 2025. The partnership aims to identify solutions for industrial electrification, focusing on the generation, storage, and transformation of renewable energy.
Legal Challenges for Meta Platforms Inc: Meta Platforms, the parent company of Facebook and Instagram, is facing consolidated lawsuits from authors, including comedian Sarah Silverman and Pulitzer Prize winner Michael Chabon. The lawsuits allege that Meta used thousands of pirated books to train its AI models without permission. The new complaint includes chat logs indicating that Meta was aware of potential copyright issues. This legal challenge adds to Meta’s recent controversies and may impact the company’s standing in the ongoing debate over intellectual property rights.
Regulatory Developments in Payment Industry: Mastercard and Visa: The Payment Systems Regulator (PSR) in the UK has proposed a provisional cap on cross-border interchange fees charged by Mastercard and Visa on transactions between the UK and the European single market. The proposed cap aims to protect businesses from overpaying and addresses the regulatory vacuum left by Brexit, as the EU’s interchange fee cap no longer applies in the UK. Both Mastercard and Visa have expressed disagreement with the proposed remedies, arguing that interchange fees reflect value in a highly competitive market.
Uber’s Legal Battle Over “Sexual Assault” References: Uber’s attempt to change the name of coordinated lawsuits accusing it of inadequately safeguarding passengers from sexual assault and harassment has been rejected by a U.S. judicial panel. The lawsuits, consolidated under the name “In re Uber Technologies Inc Passenger Sexual Assault Litigation,” will retain this title despite Uber’s objections. The decision comes after Uber argued that the phrase “sexual assault” presumed prejudgment on issues that are yet to be proven in the ongoing California federal litigation.
Vertex Pharmaceuticals’ Success in Nerve Pain Reduction: Vertex Pharmaceuticals has reported success in a mid-stage trial for its non-opioid pain drug, VX-548. The drug demonstrated a statistically significant reduction in weekly average daily pain intensity in patients with diabetic peripheral neuropathy. This positive outcome marks a notable development in the pharmaceutical industry’s efforts to address pain management without relying on opioids.
Top Analyst Ratings
Arcturus Therapeutics Holdings: Canaccord Genuity has initiated coverage on Arcturus Therapeutics Holdings with a buy rating and a target price of $81. This positive outlook is based on the anticipation of rare disease catalysts in the near future and expected revenue from vaccines in 2024. The company’s innovative approach to addressing rare diseases and its promising pipeline contribute to the optimistic valuation.
Broadstone Net Lease Inc: JPMorgan has adjusted its target price for Broadstone Net Lease Inc, lowering it to $19 from $20. This adjustment reflects the expectation of a slowdown in deal activities over the next couple of years. The revised target takes into account the evolving market dynamics and the potential impact on Broadstone Net Lease Inc’s performance.
Costco Wholesale Corp: Oppenheimer has raised the target price for Costco Wholesale Corp to $675 from $630. This adjustment is attributed to Costco’s decision to increase membership fees and its continuous growth in global shares. The positive outlook suggests that these strategic moves will contribute to the company’s future profitability and market value.
Darden Restaurants Inc: KeyBanc has increased the target price for Darden Restaurants Inc to $177 from $175. This upward revision is based on Darden’s consistent performance and improved growth estimates. The target adjustment reflects the market’s confidence in the company’s ability to sustain its positive trajectory and deliver strong financial results.
Phillips 66: JPMorgan has raised the target price for Phillips 66 to $150 from $134. This adjustment follows the completion of maintenance activities by the company and the strong commitment of the new management to operational and cost efficiency. The revised target price reflects the market’s positive response to Phillips 66’s efforts to enhance its operational performance.
Bird Construction Inc: ATB Capital Markets has increased the target price for Bird Construction Inc to C$16.5 from C$15. This adjustment is made in consideration of the company’s large dividend hike, indicating anticipated strong earnings growth in 2024. The positive outlook reflects confidence in Bird Construction Inc’s ability to capitalize on growth opportunities in the construction sector.
Cogeco Communications Inc: RBC has raised the target price for Cogeco Communications Inc to C$84 from C$80. This adjustment follows the company’s repurchase of its shares from Rogers Communications. The revised target price reflects the positive impact of this strategic move on Cogeco Communications Inc’s market value and future growth prospects.
Foran Mining Corp: National Bank of Canada has resumed coverage on Foran Mining Corp with an outperform rating. This positive rating is based on the company’s C$200 million equity financing and a strong balance sheet expected in the coming quarter. The resumption of coverage suggests confidence in Foran Mining Corp’s financial strength and growth potential.
Transcontinental Inc: National Bank of Canada has increased the target price for Transcontinental Inc to C$17 from C$16. This adjustment follows Transcontinental Inc’s stronger-than-expected fourth-quarter results and the announcement of a new improvement program for the coming year. The revised target price reflects optimism about the company’s future performance and its commitment to enhancing operational efficiency.
