GSK price target lowered to 1,290 GBp from 1,355 GBp at Morgan Stanley
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Business Insider
25 minutes ago
- Business Insider
Wall Street is eyeing more challenges for Tesla heading into its 2nd-quarter earnings report
Tesla will report second-quarter results on Wednesday, and Wall Street is cautious after what's been a wild first half of the year for Elon Musk's carmaker. Analysts remain generally bullish on the stock's long-term outlook but are eyeing challenges ahead, particularly regarding Musk's political ambitions and sagging demand for Teslas in recent months. Wall Street expects Tesla to report $22.7 billion in revenue for the quarter, down around 11% from the same period last year. Earnings per share are expected to come in at $0.33, down 36% from EPS in the second-quarter of 2024. The stock has been on a roller coaster ride this year amid concerns about tariffs, Musk's political activities, and his public feuding with President Donald Trump. The stock is down 18% year-to-date. The latest earnings will also offer critical updates to hot topics on investors' radar, including the closely watched robotaxi business. Here's what Wall Street forecasters are saying ahead of Tesla's earnings report. Morgan Stanley: Musk's politics still a headwind Musk creating a new political party could become a short-term headwind on Tesla stock, analysts at Morgan Stanley wrote in a note, calling the situation a "party crasher." The bank pointed to the immediate drop in Tesla stock after Musk officially announced his plan to form the " America Party" in a post on X, which sent shares tumbling around 7%. "While the situation remains fluid, we believe investors should be prepared for further devotion of resources (financial, time/attention) in the direction of Mr. Musk's political priorities which may add further near-term pressure to TSLA shares," analysts wrote. Tesla's deliveries are also likely to "remain subdued" through the rest of the year, the analysts added, forecasting a 13% decline in the second-half. That's slightly less than the 14% year-over-year drop in deliveries Tesla saw in the second quarter. Still, Tesla stock remains a "top pick" for the bank. Analysts reiterated their $410 price target on the stock, pointing to their growth forecasts for Tesla's auto business. The price target implies 23% upside from current levels. Bank of America: Q2 earnings are challenged Tesla is in a difficult spot ahead of earnings, Federico Merendi, an analyst at Bank of America, wrote on Monday. "Tesla 2Q earnings are likely to be challenged due to tariffs and disappointing deliveries," Merendi wrote, adding that Tesla sourced its batteries from China and that its exposure to tariffs was "not insignificant." On the positive side, Merendi pointed to Tesla rolling out its Robotaxi service in Austin last month, as well as the possibility that demand for the company's vehicles will improve in the third quarter, as consumers could "pull" their demand forward before the EV tax credit gets phased out later this year. The bank reiterated its "Neutral" rating on the stock and raised its price target to $341 a share, up from the prior estimate of $305. Its new price target implies about 3% upside from the current levels. Wedbush Securities: Stock could be at a "positive crossroads" Tesla stock could be heading toward an inflection point, if Musk continues to lead Tesla and stay on top of its most important projects, analysts at Wedbush Securities said. In a note on Tuesday, the firm said that the outlook for Tesla looked "dramatically different" today compared to three months ago, when Musk was still working closely with the Trump administration. Since then, Musk's time as a special government employee has come to an end, and the CEO now looks "laser focused" on Tesla's ongoing projects, they said, pointing to the Robotaxi launch and Tesla possibly investing in xAI, the artificial intelligence startup Musk founded in 2023. "If Musk continues to lead and remain in the driver's seat this pace, we believe Tesla is on a path to an accelerated growth path over the coming years," the firm said, adding that they believed AI could generate around $1 trillion in value for Tesla alone. In a previous note, Wedbush analysts expressed concerns over Musk's political intentions, calling his plan to create a new political party a "Soap Opera" that needed to end. The firm also outlined a list of actions Tesla's board needed to take to move the company forward, which included drafting a new pay package for Musk and setting guidelines for Musk's political plans. "We are at a 'positive crossroads' in the Tesla story," the analysts added. "While near-term and this quarter the numbers are nothing to write home about, we believe investors are instead focused on the AI future at Tesla with a motivated Musk back driving Tesla's future." Wedbush reiterated its "Outperform" rating and the stock and $500 price target, implying about 52% upside from the stock's current levels. William Blair: Eyeing headwinds from Trump's Big Beautiful Bill Tesla could see further downside, partly thanks to policy changes in the Republican tax and spending bill, analysts from William Blair wrote in a note earlier this month. The firm pointed to the bill's ending of the EV tax credit, as well as the removal of corporate average fuel economy fines — fines for carmakers when their vehicles aren't energy efficient enough. Both changes are expected to impact Tesla's revenue, given that the company sold emissions credits to other carmakers that didn't meet energy efficiency standards. "While the $7,500 tax credit is likely to affect demand, the combination of a demand headwind and over $2 billion in profit from regulatory credits at risk may be too much for investors to bear," Jed Dorsheimer and Mark Shooter, two analysts at the firm, wrote. Musk's political plans could also remain an overhang on Tesla stock, Dorsheimer and Shooter added, pointing to Musk's new party. "We expect that investors are growing tired of the distraction at a point when the business needs Musk's attention the most and only see downside from his dip back into politics. We would prefer this effort to be channeled towards the robotaxi rollout at this critical juncture." The firm downgraded Tesla to a rating of "Market Perform." Cantor Fitzgerald: Handful of risks ahead Analysts at Cantor Fitzgerald lowered their second-quarter revenue forecast for Tesla to $21 billion, down from their prior estimate of $24.1 billion. The revision reflects the year-over-year decline in Tesla deliveries in the second quarter, analysts said, though they noted that they weren't changing their year-end revenue and earnings target for the stock. Cantor also outlined a handful of potential catalysts and key risks to the stock ahead: Analysts added that they saw particularly long-term upside from Tesla's Robotaxi business. "Overall, we continue see Tesla's Robotaxi segment as a software-as-a-service, high-margin model, and we expect TSLA to have the ability to rapidly scale following commercialization. We continue to believe that TSLA will capture significant share of the autonomous driving and ride-sharing industries," they added. The firm reiterated its "Overweight" rating and $355 price target on the stock, implying 8% upside from the stock's current level.
Yahoo
an hour ago
- Yahoo
Why Vital Farms (VITL) Stock Is Trading Up Today
What Happened? Shares of egg and butter company Vital Farms (NASDAQ:VITL) jumped 3% in the morning session after Morgan Stanley raised its price target on the stock. The investment bank increased its price target on the ethical food company to $41 from $39, while maintaining its "Overweight" rating on the shares. This signals a bullish outlook from the Wall Street firm, suggesting it sees further upside potential for the stock. An Overweight rating, similar to a "Buy" rating, indicates that the analyst believes the stock will outperform its industry peers over the next several months. This positive analyst action provided a direct catalyst for the stock's advance, boosting investor confidence in the company's growth prospects. After the initial pop the shares cooled down to $37.38, up 1.3% from previous close. Is now the time to buy Vital Farms? Access our full analysis report here, it's free. What Is The Market Telling Us Vital Farms's shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 2 months ago when the stock dropped 9.1% on the news that the company reported mixed first quarter 2025 results which significantly beat analysts' EPS and EBITDA expectations, although its full-year EBITDA guidance slightly missed. The company stuck to its revenue forecast but guided EBITDA a bit lower than expected, citing supply constraints and macro uncertainty. Overall, we think this was still a solid quarter. Vital Farms is down 3.8% since the beginning of the year, and at $37.38 per share, it is trading 17.2% below its 52-week high of $45.12 from January 2025. Investors who bought $1,000 worth of Vital Farms's shares 5 years ago would now be looking at an investment worth $1,060. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Why Crown Holdings (CCK) Stock Is Trading Up Today
What Happened? Shares of metal packaging products manufacturer Crown Holdings (NYSE:CCK) jumped 3.6% in the morning session after the company reported second-quarter earnings that surpassed analyst expectations and raised its full-year guidance. The company announced adjusted earnings per share of $2.15, a 19% increase from the prior year and well ahead of the consensus estimate of $1.87. Revenue for the quarter also topped forecasts, coming in at $3.15 billion, driven by strong performance in its beverage and North American tinplate businesses. Buoyed by the strong first-half results, Crown lifted its full-year adjusted earnings per share forecast to a range of $7.10 to $7.50, up from the previous estimate of $6.70 to $7.10. The company also increased its projection for adjusted free cash flow, which is the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. The positive report prompted a Buy rating reiteration from analysts at both Citi and Morgan Stanley. After the initial pop the shares cooled down to $105.56, up 0.7% from previous close. Is now the time to buy Crown Holdings? Access our full analysis report here, it's free. What Is The Market Telling Us Crown Holdings's shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 12 months ago when the stock gained 10% on the news that the company reported strong second-quarter earnings. EPS came in ahead of expectations, though revenue missed by a narrow margin. The topline benefited from "higher global beverage can shipments offset primarily by the pass through of $94 million in lower material costs and unfavorable foreign currency of $13 million." Adding to the positive aspect, free cash flow came in positive, and gross margin ticked up slightly. Overall, it was a strong quarter for the company, with ample reasons for investors to stay positive. Crown Holdings is up 30% since the beginning of the year, and at $105.56 per share, it is trading close to its 52-week high of $108.12 from July 2025. Investors who bought $1,000 worth of Crown Holdings's shares 5 years ago would now be looking at an investment worth $1,492. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Sign in to access your portfolio
