Latest news with #Reitzes
Business Insider
25-06-2025
- Business
- Business Insider
‘Time to Jump In,' Says Analyst as He Upgrades Rating and PT on AMD Stock
Semiconductor giant Advanced Micro Devices (AMD) is starting to gain traction in the AI race, after earlier concerns about lagging Nvidia (NVDA). The stock is down 19% over the past year but is up more than 7% year-to-date. In a new update, Melius Research analyst Ben Reitzes upgraded the stock to Buy from Hold and raised the 12-month price target to $175.00 from $110.00, suggesting an impressive 35% upside from current levels. He believes the company's position has improved meaningfully in the AI space since the start of the year. Confident Investing Starts Here: Analyst Sees AI Upside Still Not Priced In According to Reitzes, AMD has moved past the early rebound phase and is now 'in the middle' of a broader rally, with further upside expected. While shares have seen big swings—rising to $211 last year before falling below $80 in 2025—he believes that recent progress isn't yet fully reflected in the price. One key reason behind this view is the growing demand for AMD's AI chips. The analyst pointed to strong interest from cloud providers and government-backed firms in AMD's MI300 and MI350 chips—both built for AI tasks. The upcoming MI400 line is also drawing early attention. He believes AI inferencing is turning out to be 'much bigger' than expected. With stronger memory and better software, AMD's chips are becoming more attractive to high-end buyers. The analyst also pointed to AMD's partnerships with Amazon (AMZN), Meta (META), OpenAI, and Saudi-based AI group HUMAIN. It's important to highlight that AMD and HUMAIN are investing up to $10 billion in data center projects across the Middle East. Melius believes this could drive major gains in the region, where AMD's market share may surpass its global share. Other Segments Show Signs of Strength While AI remains the top driver, Reitzes also noted signs of strength in AMD's PC business, due to higher average selling prices and modest share gains from Intel (INTC). These gains could help buffer AMD if Nvidia eventually enters the PC CPU market. Looking ahead, he also expects continued growth in AMD's server chip business. New products like the 'Venice' CPU and the 'Helios' rack-scale platform could help boost its presence in large data centers. Given these tailwinds, the firm has raised its earnings estimates through 2027. It now expects EPS to reach $3.88 this year, rising to $5.77 in 2026 and $7.08 in 2027. The analyst adds that if AMD captures more than 5% of the global AI chip market, the upside could be even higher. Is AMD Stock a Buy or Sell Now? To summarize, Wall Street is cautiously optimistic on Advanced Micro Devices stock, with a Moderate Buy consensus rating based on 22 Buys and 10 Holds. The average AMD stock price target of $132.17 indicates a modest upside potential of 2% from current levels.
Vancouver Sun
22-06-2025
- Business
- Vancouver Sun
Uncertainty reigns as trade tensions, tax shifts cloud Bank of Canada's inflation outlook
The Bank of Canada will get a fresh look at national inflation figures this week — a picture that's been particularly murky as of late amid tax changes and trade wars. Statistics Canada is expected to publish its consumer price index for May on Tuesday. Financial data shows the consensus among economists is that inflation ticked up to 1.8 per cent year-over-year last month. April figures showed the annual inflation rate slowed sharply to 1.7 per cent, thanks largely to a drop in gasoline prices tied to the end of the consumer carbon price. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Benjamin Reitzes, BMO's managing director of Canadian rates and macro strategist, said he expects inflation cooled two ticks to 1.5 per cent in May. He pointed to a slowing in shelter inflation and a smaller jump in gas prices compared with the same time last year for the easing. But it won't be just the headline number the Bank of Canada is parsing as it attempts to set its benchmark interest rate in an increasingly uncertain world. 'The reality is, they don't just look at one number. They look at a number of different inflation metrics to really try and figure out what the underlying trend is,' Reitzes said. Bank of Canada governor Tiff Macklem called the current inflation picture 'complicated' in a speech to the St. John's Board of Trade in Newfoundland and Labrador on Wednesday. The 'firmness' in underlying inflation lately might be early signs of the trade war with the United States impacting inflation, he said. The central bank has so far been dogged by uncertainty tied to the tariff dispute, holding its policy rate steady at 2.75 per cent twice in a row as it waits for clarity on how the trade restrictions will impact inflation. While the tariffs and counter-tariffs themselves are likely to drive up prices for businesses, it's not yet clear to the bank how quickly companies will pass those costs on to customers. Resulting slowdowns in the economy could also see businesses and consumers rein in spending, keeping inflationary pressures relatively tame. Katherine Judge, senior economist at CIBC Capital Markets, said inflation likely inched higher because of tariffs. 'The acceleration in the monthly pace will be largely tied to food prices that are picking up counter-tariff impacts and core goods prices that could begin to reflect broader tariffs,' she said in a note to clients on Friday. 'We expect rent inflation to decelerate after a surprising jump in April, and in line with industry data, leaning against food price increases.' Judge noted the upcoming inflation reading will reflect adjustments Statistics Canada made to its CPI basket, but said such changes don't usually have a meaningful impact on the headline number. Reitzes said it's been hard to pinpoint the impact of tariffs on the inflation data. 'The Bank of Canada is certainly watching for that, though,' he said. 'The army of economists they have working for them will be kind of teasing through all of that data and looking for any signs of that.' Food inflation has been a bit stronger in recent months, which Reitzes noted is one area where Canada is applying counter-tariffs. But he also said that could be a lagged impact from weakness in the Canadian dollar at the start of the year now filtering into food prices. Another source of noise in the inflation data is tax changes from the federal government in the early part of the year. First, Ottawa's two-month GST holiday skewed price data on a range of groceries, gifts and household staples, and now the end of the consumer carbon tax is driving down headline inflation. But that impact is only going to last for a year and will fall out of the inflation comparison after 12 months. Macklem said the central bank is increasingly putting weight on CPI measures that strip out influences from tax changes to give it some clarity. He noted Wednesday that inflation excluding taxes was 2.3 per cent in April — stronger than the central bank was expecting. Macklem also signalled Wednesday that the Bank of Canada is scrutinizing its own preferred measures of core inflation a little more closely. Those core inflation figures are now running above three per cent, but Macklem also warned there's 'potentially some distortion' that could be 'exaggerating' price pressures. Alternative measures of core inflation are coming in lower, so he said the bank is looking at a range of factors as it gauges where inflation is heading next. 'There is some unusual volatility. So how temporary or persistent this is, I think remains an open question,' Macklem said. The Bank of Canada will get a look at two inflation reports before its next interest rate decision on July 30. If inflation shows signs of remaining well contained in those releases, Reitzes said the Bank of Canada might find a window to lower interest rates to boost the economy in the face of tariffs. 'They'll probably take that opportunity, but inflation needs to provide them with that,' he said. 'And at the moment it is not doing so.' 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Edmonton Journal
22-06-2025
- Business
- Edmonton Journal
Uncertainty reigns as trade tensions, tax shifts cloud Bank of Canada's inflation outlook
Article content April figures showed the annual inflation rate slowed sharply to 1.7 per cent, thanks largely to a drop in gasoline prices tied to the end of the consumer carbon price. Benjamin Reitzes, BMO's managing director of Canadian rates and macro strategist, said he expects inflation cooled two ticks to 1.5 per cent in May. He pointed to a slowing in shelter inflation and a smaller jump in gas prices compared with the same time last year for the easing. But it won't be just the headline number the Bank of Canada is parsing as it attempts to set its benchmark interest rate in an increasingly uncertain world. 'The reality is, they don't just look at one number. They look at a number of different inflation metrics to really try and figure out what the underlying trend is,' Reitzes said. Bank of Canada governor Tiff Macklem called the current inflation picture 'complicated' in a speech to the St. John's Board of Trade in Newfoundland and Labrador on Wednesday.
Hamilton Spectator
22-06-2025
- Business
- Hamilton Spectator
Bank of Canada hoping for better look at ‘complicated' inflation picture
OTTAWA - The Bank of Canada will get a fresh look at national inflation figures this week — a picture that's been particularly murky as of late amid tax changes and trade wars. Statistics Canada is expected to publish its consumer price index for May on Tuesday. Financial data shows the consensus among economists is that inflation ticked up to 1.8 per cent year-over-year last month. April figures showed the annual inflation rate slowed sharply to 1.7 per cent, thanks largely to a drop in gasoline prices tied to the end of the consumer carbon price. Benjamin Reitzes, BMO's managing director of Canadian rates and macro strategist, said he expects inflation cooled two ticks to 1.5 per cent in May. He pointed to a slowing in shelter inflation and a smaller jump in gas prices compared with the same time last year for the easing. But it won't be just the headline number the Bank of Canada is parsing as it attempts to set its benchmark interest rate in an increasingly uncertain world. 'The reality is, they don't just look at one number. They look at a number of different inflation metrics to really try and figure out what the underlying trend is,' Reitzes said. Bank of Canada governor Tiff Macklem called the current inflation picture 'complicated' in a speech to the St. John's Board of Trade in Newfoundland and Labrador on Wednesday. The 'firmness' in underlying inflation lately might be early signs of the trade war with the United States impacting inflation, he said. The central bank has so far been dogged by uncertainty tied to the tariff dispute, holding its policy rate steady at 2.75 per cent twice in a row as it waits for clarity on how the trade restrictions will impact inflation. While the tariffs and counter-tariffs themselves are likely to drive up prices for businesses, it's not yet clear to the bank how quickly companies will pass those costs on to customers. Resulting slowdowns in the economy could also see businesses and consumers rein in spending, keeping inflationary pressures relatively tame. Katherine Judge, senior economist at CIBC Capital Markets, said inflation likely inched higher because of tariffs. 'The acceleration in the monthly pace will be largely tied to food prices that are picking up counter-tariff impacts and core goods prices that could begin to reflect broader tariffs,' she said in a note to clients on Friday. 'We expect rent inflation to decelerate after a surprising jump in April, and in line with industry data, leaning against food price increases.' Judge noted the upcoming inflation reading will reflect adjustments Statistics Canada made to its CPI basket, but said such changes don't usually have a meaningful impact on the headline number. Reitzes said it's been hard to pinpoint the impact of tariffs on the inflation data. 'The Bank of Canada is certainly watching for that, though,' he said. 'The army of economists they have working for them will be kind of teasing through all of that data and looking for any signs of that.' Food inflation has been a bit stronger in recent months, which Reitzes noted is one area where Canada is applying counter-tariffs. But he also said that could be a lagged impact from weakness in the Canadian dollar at the start of the year now filtering into food prices. Another source of noise in the inflation data is tax changes from the federal government in the early part of the year. First, Ottawa's two-month GST holiday skewed price data on a range of groceries, gifts and household staples, and now the end of the consumer carbon tax is driving down headline inflation. But that impact is only going to last for a year and will fall out of the inflation comparison after 12 months. Macklem said the central bank is increasingly putting weight on CPI measures that strip out influences from tax changes to give it some clarity. He noted Wednesday that inflation excluding taxes was 2.3 per cent in April — stronger than the central bank was expecting. Macklem also signalled Wednesday that the Bank of Canada is scrutinizing its own preferred measures of core inflation a little more closely. Those core inflation figures are now running above three per cent, but Macklem also warned there's 'potentially some distortion' that could be 'exaggerating' price pressures. Alternative measures of core inflation are coming in lower, so he said the bank is looking at a range of factors as it gauges where inflation is heading next. 'There is some unusual volatility. So how temporary or persistent this is, I think remains an open question,' Macklem said. The Bank of Canada will get a look at two inflation reports before its next interest rate decision on July 30. If inflation shows signs of remaining well contained in those releases, Reitzes said the Bank of Canada might find a window to lower interest rates to boost the economy in the face of tariffs. 'They'll probably take that opportunity, but inflation needs to provide them with that,' he said. 'And at the moment it is not doing so.' This report by The Canadian Press was first published June 22, 2025.
Winnipeg Free Press
22-06-2025
- Business
- Winnipeg Free Press
Bank of Canada hoping for better look at ‘complicated' inflation picture
OTTAWA – The Bank of Canada will get a fresh look at national inflation figures this week — a picture that's been particularly murky as of late amid tax changes and trade wars. Statistics Canada is expected to publish its consumer price index for May on Tuesday. Financial data shows the consensus among economists is that inflation ticked up to 1.8 per cent year-over-year last month. April figures showed the annual inflation rate slowed sharply to 1.7 per cent, thanks largely to a drop in gasoline prices tied to the end of the consumer carbon price. Benjamin Reitzes, BMO's managing director of Canadian rates and macro strategist, said he expects inflation cooled two ticks to 1.5 per cent in May. He pointed to a slowing in shelter inflation and a smaller jump in gas prices compared with the same time last year for the easing. But it won't be just the headline number the Bank of Canada is parsing as it attempts to set its benchmark interest rate in an increasingly uncertain world. 'The reality is, they don't just look at one number. They look at a number of different inflation metrics to really try and figure out what the underlying trend is,' Reitzes said. Bank of Canada governor Tiff Macklem called the current inflation picture 'complicated' in a speech to the St. John's Board of Trade in Newfoundland and Labrador on Wednesday. The 'firmness' in underlying inflation lately might be early signs of the trade war with the United States impacting inflation, he said. The central bank has so far been dogged by uncertainty tied to the tariff dispute, holding its policy rate steady at 2.75 per cent twice in a row as it waits for clarity on how the trade restrictions will impact inflation. While the tariffs and counter-tariffs themselves are likely to drive up prices for businesses, it's not yet clear to the bank how quickly companies will pass those costs on to customers. Resulting slowdowns in the economy could also see businesses and consumers rein in spending, keeping inflationary pressures relatively tame. Katherine Judge, senior economist at CIBC Capital Markets, said inflation likely inched higher because of tariffs. 'The acceleration in the monthly pace will be largely tied to food prices that are picking up counter-tariff impacts and core goods prices that could begin to reflect broader tariffs,' she said in a note to clients on Friday. 'We expect rent inflation to decelerate after a surprising jump in April, and in line with industry data, leaning against food price increases.' Judge noted the upcoming inflation reading will reflect adjustments Statistics Canada made to its CPI basket, but said such changes don't usually have a meaningful impact on the headline number. Reitzes said it's been hard to pinpoint the impact of tariffs on the inflation data. 'The Bank of Canada is certainly watching for that, though,' he said. 'The army of economists they have working for them will be kind of teasing through all of that data and looking for any signs of that.' Food inflation has been a bit stronger in recent months, which Reitzes noted is one area where Canada is applying counter-tariffs. But he also said that could be a lagged impact from weakness in the Canadian dollar at the start of the year now filtering into food prices. Another source of noise in the inflation data is tax changes from the federal government in the early part of the year. First, Ottawa's two-month GST holiday skewed price data on a range of groceries, gifts and household staples, and now the end of the consumer carbon tax is driving down headline inflation. But that impact is only going to last for a year and will fall out of the inflation comparison after 12 months. Macklem said the central bank is increasingly putting weight on CPI measures that strip out influences from tax changes to give it some clarity. He noted Wednesday that inflation excluding taxes was 2.3 per cent in April — stronger than the central bank was expecting. Macklem also signalled Wednesday that the Bank of Canada is scrutinizing its own preferred measures of core inflation a little more closely. Those core inflation figures are now running above three per cent, but Macklem also warned there's 'potentially some distortion' that could be 'exaggerating' price pressures. Alternative measures of core inflation are coming in lower, so he said the bank is looking at a range of factors as it gauges where inflation is heading next. Wednesdays Columnist Jen Zoratti looks at what's next in arts, life and pop culture. 'There is some unusual volatility. So how temporary or persistent this is, I think remains an open question,' Macklem said. The Bank of Canada will get a look at two inflation reports before its next interest rate decision on July 30. If inflation shows signs of remaining well contained in those releases, Reitzes said the Bank of Canada might find a window to lower interest rates to boost the economy in the face of tariffs. 'They'll probably take that opportunity, but inflation needs to provide them with that,' he said. 'And at the moment it is not doing so.' This report by The Canadian Press was first published June 22, 2025.
