Oracle
What happened? On Monday, Erste Group upgraded Oracle Corporation (NYSE:ORCL) to Buy without setting a price target.
*TLDR: Erste expects operating margin to increase and share to continue uptrend. Software offerings and 162 data centers boost sales and profit growth
What is the full story? Erste analysts emphasize that Oracle’s attractive software offerings have significantly improved its sales situation. Oracle is expanding its cloud services with new data centers, now at 162, either operating or under construction. In addition, 42 new cloud GPU contracts were signed in the first quarter, setting the stage for strong sales and earnings growth in the current and next fiscal year.
Analysts also expect operating margin growth and note that the stock is favorably valued on a P/E basis. Given these factors, Erste believes that the stock’s upward trend is likely to continue.
Buying in Erste means “Expected total annual return > +15%”.
Ford
What happened? On Tuesday, Goldman Sachs upgraded Ford (NYSE:F) stock to Buy with a price target of $13.
*TLDR: Goldman sees Ford Pro’s profitable commercial business and software development leading to margin opportunities.
What is the full story? Goldman sees a margin opportunity for Ford driven by its profitable commercial business, Ford Pro, which has mid-decade EBIT margins, and a growing mix of software and services. The bank highlights Ford’s goal of $1 billion in software revenue by 2025 and targets software and physical services to make up 20% of Pro’s EBIT by 2026. With paid subscriptions growing at a CAGR of 35 -40%, Goldman sees long-term opportunities in fleet services and ADAS.
Despite the stock down 13% year-over-year on cyclical concerns and higher-than-expected warranty costs, Goldman notes that the stock is trading at just 5x its next-twelve-month (NTM) earnings per share estimate. at the lower end of the historical range. The bank sees a 23% upside to its new 12-month price target of $13, with a total return of around 30%, including a 6% dividend yield.
Buy at Goldman Sachs means ‘Goldman Sachs assigns shares as Buys and Sells to various regional investment lists – shares not so assigned are considered neutral. Such orders are equivalent to Buy, Hold and Sell for purposes of the above disclosure required by FINRA rules. ยป
Harley-Davidson
What happened? On Wednesday, Baird downgraded Harley-Davidson (NYSE:HOG) to neutral with a price target of $40.
*TLDR: Dealers cite weak retail sales, excess inventory and negative sentiment, putting Harley-Davidson’s guidance at risk. Baird advises caution due to stakeholder frustration and difficult market conditions.
What is the full story? Baird reached out to Harley-Davidson dealers to gather information on third-quarter trends. Feedback from dealers highlighted weak retail performance, excess inventory and a generally negative sentiment, which indicated potential risks to the company’s guidance. This summer, Harley-Davidson was often in the news for unfavorable reasons, further adding to the frustration of stakeholders.
Despite recognizing the inherent value of the Harley-Davidson brand, Baird notes that negative feedback from riders, dealers and shareholders has created a difficult environment this season. Given these factors, Baird suggests it might be wise to take a cautious approach at this time.
Neutral at Baird means “Expected to perform in line with the broader US equity market over the next 12 months.”
Shoals Technologies Group
What happened? On Thursday, Citi upgraded Shoals Technologies Group Inc (NASDAQ:SHLS) to neutral with a price target of $5.50.
*TLDR: Target aligned stock – balanced risk/reward – patent case largely resolved. Downside risks: AD trend, increasing competition and margin volatility.
What is the full story? Citi analysts note that the stock is currently in line with their target, presenting a balanced risk/reward scenario. The main catalyst, a patent infringement case, has largely concluded with the ALJ recommending a limited blocking order. Additionally, concerns about “shrinkage” have largely been resolved and approvals from Blattner and the top 10 EPC MSAs provide confidence. However, guidance and modest growth prospects at utility scale have tempered expectations.
Analysts point to potential downside risks, including the impending launch of an AD product from Voltage, which will not be affected by the blocking order. Increasing competition and relatively high profit margin prospects also pose risks. In the short term, gross margins may experience volatility as plants operate concurrently before consolidating their operations.
Neutral at Citi means “For stocks rated Neutral (2), if an analyst believes there are insufficient valuation drivers and/or investment catalysts to derive a positive or negative investment view, he may, with the approval of Citi management, choose Research, not to set a target price and, therefore, not to issue an EBIT. ยป
M&T Bank
What happened? On Friday, Wolfe upgraded M&T Bank (NYSE:MTB) to Outperform with a price target of $210.
*TLDR: Wolfe expects M&T Bank to maintain top NIMs through 2026.
What is the full story? Wolfe expects M&T Bank to continue to generate top net interest margins through 2026. Unlike some of its peers, MTB’s NIM has not been significantly impacted by underwater cash flow swaps, and its non-interest bearing deposit mix is about 280 basis points higher than Wolfe’s coverage average. This supports Wolfe’s belief that MTB will maintain its NIM advantage through 2026.
The brokerage currently models MTB’s NIM at 3.67% for 2025 and 3.72% for 2026, compared to Mid-Cap Bank averages of 3.07% and 3.15% , respectively. This forecast underscores Wolfe’s confidence in MTB’s ability to outperform its competitors in terms of NIM over the coming years.
Outperform at Wolfe means “the stock is projected to outperform the industry coverage universe of analysts over the next 12 months.”
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