Latest news with #M&A
Yahoo
2 hours ago
- Business
- Yahoo
Jefferies sees potential Core Scientific takeout value range of $16-$23
After The Wall Street Journal reported that CoreWeave (CRWV) is in talks to acquire Core Scientific (CORZ), Jefferies analyst Jonathan Petersen contends that the combination of the two 'makes strategic sense' as it would allow CoreWeave to vertically integrate its infrastructure, reduce operating expense and use the Core Scientific platform to grow its data center development pipeline. The firm, which estimates a potential takeout value range of $16-$23, has a Buy rating and $16 price target on Core Scientific shares and a Buy rating and $180 price target on CoreWeave. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on CORZ: Disclaimer & DisclosureReport an Issue Core Scientific could get north of $30/share in buyout, says Cantor Fitzgerald JPMorgan continues to recommend Riot after Core Scientific report Strategic Acquisition and Capacity Expansion Drive Buy Rating for Core Scientific Inc. M&A News: CoreWeave (CRWV) Is Reportedly in Talks to Acquire Core Scientific Closing Bell Movers: Nike gains 10% on more positive earnings call
Bloomberg
a day ago
- Business
- Bloomberg
Europe's Champions Chase Is Key to Big M&A, Says BofA's Morisseau
Hi, it's Vinicy Chan in London, discussing one of the big potential M&A drivers in Europe with Bank of America's Jerome Morisseau. Also today, Babbel says its IPO is off the table. Today's top stories
News24
a day ago
- Business
- News24
Standard Bank wins 10 awards at EMEA Finance Africa Banking Awards
Standard Bank, the biggest bank in Africa by assets, has won an impressive 10 awards at the 17th annual edition of the EMEA (Europe, Middle East and Africa) Finance Magazine Africa Banking Awards. The EMEA Finance Magazine Achievement Awards were recently held in London. Award winners are nominated by banks and their clients and chosen by the EMEA Finance editorial team. Standard Bank Corporate and Investment Banking was recognised across three categories, equity capital markets, taking five awards, three in mergers & acquisitions (M&A) and two in syndicated loans. These are inclusive of the Best M&A house in Africa accolades, two Best M&A deals in Africa for deals originated in Nigeria and East Africa, and the Best IPO in Africa Awards for the Boxer Retail deal. 'We are proud to be recognised across various categories for our innovative and client-led solutions. They reaffirm our commitment to sustainably growing the continent we proudly call home. 'This highlights the importance we place on aligning our purpose with action through innovative deals across the African continent,' says Luvuyo Masinda, Chief Executive of Standard Bank Corporate and Investment Banking. The Awards recognise the most notable transactions and the organisations behind them across a variety of markets, including debt and equity capital markets, loans, Islamic finance, structured finance and more. 'We will continue to strive to deliver innovative, exceptional service tailored to our clients' needs where they need them,' concludes Masinda.
Globe and Mail
a day ago
- Business
- Globe and Mail
Goldman Stock Surges Over 57% in a Year: Is There Still Room to Run?
The Goldman Sachs Group, Inc. GS shares have surged 57.3% over the past year, outperforming the industry 's 40.9% growth. Its peers, JPMorgan JPM and Morgan Stanley MS, shares rose 48.4% and 50.6%, respectively, over the same time frame. Price Performance With such strong momentum, investors are now asking: Is there still room for Goldman to run, or has the stock peaked? Let us delve deeper and analyze what's driving the growth and whether there is more scope to grow further. Prospects of Goldman's IB Business A robust revival in merger and acquisition (M&A) activity was expected for 2025, bolstered by a potentially business-friendly Trump administration, expectations for regulatory rollbacks and pent-up demand. However, the reality so far has been more complicated. Now, the timeline for a solid rebound in M&As has shifted to the second half of 2025 due to Trump's tariff plans, which resulted in extreme market volatility. Given mounting inflationary pressure, a slowdown/recession in the U.S. economy is expected. Amid such a backdrop, companies are rethinking their M&A plans despite stabilizing rates and having significant investible capital. In the first quarter of 2025, Goldman reported an 8% year-over-year decline in IB revenues, underwhelming against JPMorgan's 12% growth and Morgan Stanley's 7.7% increase in IB fees over the same period. On the surface, this may suggest Goldman is losing ground to its peers. However, the company continues to maintain a leading market share in global M&A advisory, underscoring deep institutional relationships and trusted deal execution capabilities. GS has reported an increased IB backlog, indicating a strong pipeline of potential deals that could convert into revenues as soon as macro conditions improve. This positions Goldman to capitalize well once M&A momentum improves, potentially giving it an edge over peers. GS & Easing Capital Requirement Proposal This week, the Federal Reserve proposed a 1.4% reduction in capital requirements for Global Systemically Important Banks (GSIBs), which could translate to approximately $13 billion in capital relief for major players like Goldman, JPMorgan, and Morgan Stanley. This proposal, if finalized, would increase operational flexibility for GS. With lower capital buffers, Goldman would be able to reallocate resources more efficiently, potentially scaling operations in key areas such as lending, trading and treasury activities. Further, freeing up billions in capital could boost return on equity (ROE) and unlock new growth avenues. The company may opt to deploy excess capital into higher-yielding assets, invest in business expansion, or return it to shareholders via dividends and share buybacks. Goldman's Focus on Core Business GS is making efforts to exit non-core consumer banking business and sharpen its focus on areas wherein it holds a competitive edge — IB, trading, and asset and wealth management (AWM). Last November, per the Wall Street Journal report, Goldman received a proposal from Apple to end their consumer banking partnership. Per a January 2025 Reuters report, the collaboration may end before the contract runs out in 2030. The move is expected to affect two consumer banking products that Apple currently offers — the Apple Card and the Apple Savings account. In 2024, Goldman finalized a deal to transfer its GM credit card business to Barclays and completed the sale of GreenSky, its home-improvement lending platform. In 2023, the company divested its Personal Financial Management unit. These moves demonstrate a well-thought-out exit from consumer finance, allowing Goldman to reallocate capital and attention toward higher-margin, more scalable businesses. This strategic shift is benefiting the AWM division, which now plays a crucial role in the company's long-term growth. AWM is expanding into fee-based revenue streams to help offset the volatility of the IB business. As of March 31, 2025, AWM managed more than $3.2 trillion in assets under supervision and is experiencing strong momentum in alternative investments and customized wealth solutions for ultra-high-net-worth individuals. In the first quarter of 2025, Goldman reported significant net inflows into its wealth management platform, providing solid evidence of the segment's increasing market traction and client confidence. Goldman's Strong Liquidity Profile GS maintains a fortress balance sheet, with Tier 1 capital ratios well above regulatory requirements. This financial strength allows it to return capital to shareholders aggressively through buybacks and a healthy dividend yield (1.79%). As of March 31, 2025, cash and cash equivalents were $167 billion, and near-term borrowings were $71 billion. Given its strong liquidity, the company rewards its shareholders handsomely. In July 2024, it increased its common stock dividend 9.1% to $3 per share. In the past five years, the company hiked dividends four times, with an annualized growth rate of 23.6%. Currently, its payout ratio sits at 28% of earnings. Meanwhile, GS' peer JPMorgan raised its dividend five times over the past five years, with a payout ratio of 27%. Morgan Stanley raised its dividend four times over the past five years and has a payout ratio of 43%. Additionally, Goldman has a share repurchase plan in place. In the first quarter of 2025, the board of directors approved a share repurchase program authorizing additional repurchases of up to $40 billion of common stock. Earlier, in February 2023, it announced a share repurchase program, authorizing repurchases of up to $30 billion of common stock with no expiration date. At the end of the first quarter, GS had $43.6 billion worth of shares available under authorization. Goldman's Estimates and Valuation Analysis The Zacks Consensus Estimate for GS' 2025 and 2026 revenues indicates a year-over-year rise of 3.5% and 5.9%, respectively. Likewise, the consensus estimate for 2025 and 2026 earnings indicates an 8.8% and 14.1% rise, respectively. Sales Estimates Image Source: Zacks Investment Research Earnings Estimates Image Source: Zacks Investment Research In terms of valuation, GS stock also looks expensive. The stock is trading at forward price/earnings (P/E) of 14.60X compared with the industry average of 14.55X. Goldman is also trading at a discount compared with its peers, JPMorgan and Morgan Stanley. Currently, JPM and MS have P/E multiples of 15.26X and 15.67X, respectively. Price-to-Earnings F12M GS Stock: A Solid Long-Term Play, Near-Term Caution Advised Goldman has delivered outstanding returns over the past year, driven by strategic initiatives, strong capital returns and a growing wealth management business. Though its IB business performance lagged peers in the first quarter, its leadership in M&A advisory and robust deal pipeline signal potential upside once market conditions stabilize. The Fed's proposed capital requirement changes, combined with Goldman's exit from lower-margin consumer banking, provide additional flexibility to boost profitability and scale core operations. However, with the stock trading at a premium compared with the industry and macro uncertainties persisting, the near-term risk/reward may be balanced. As such, Goldman stock warrants a cautious approach for now. However, it remains a strong long-term holding for investors looking for exposure to a diversified, well-capitalized financial giant poised to benefit from a recovery in deal-making and capital markets activity. At present, Goldman carries a Zacks Rank #3 (Hold) You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Morgan Stanley (MS): Free Stock Analysis Report
Bloomberg
a day ago
- Business
- Bloomberg
Banks Vie for Advent's Planned £2 Billion Reckitt Unit Debt Deal
Bankers are vying to play a part in the debt financing backing Advent International 's potential acquisition of a suite of Reckitt Benckiser Group Plc 's homecare brands — a rare leveraged buyout amid a subdued M&A environment. Around 10 to 15 banks are looking to land a spot on the £2 billion ($2.75 billion) or so financing transaction, according to people familiar with the matter, eager to underwrite what would be one of the few deals to come to market this year. The sell down of the debt is expected to come after the summer if the deal goes ahead, one of the people said.
