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Goldman Sachs upgrades Nexans to Buy on stronger HVDC market
Goldman Sachs upgrades Nexans to Buy on stronger HVDC market

Yahoo

time11-07-2025

  • Business
  • Yahoo

Goldman Sachs upgrades Nexans to Buy on stronger HVDC market

-- Goldman Sachs upgraded French cable maker Nexans (EPA:NEXS) to Buy from Neutral saying a tighter-than-expected supply-demand backdrop for high-voltage direct current (HVDC) systems that could support long-term growth. The bank raised its price target on Nexans shares to €125, implying about 15% upside from current levels. Goldman expects the HVDC market to remain undersupplied beyond 2027, driven by accelerating demand for grid expansion projects across Europe. Its revised forecasts, based on the EU's 2024 Ten-Year Network (LON:NETW) Development Plan, show HVDC demand rising at a 10% compound annual rate through 2032—outpacing supply growth of just 6%. Analysts now see demand exceeding supply by at least 20% from 2027 onwards, with supply additions from new entrants have been slower than initially expected. Nexans, which recently reported a rebound in its order backlog, is seen as a key beneficiary of the supply-constrained market in the medium term, especially given improving utilization and project mix after 2026. Shares in Nexans are up around 25% year-to-date. The company has positioned itself as a major supplier for energy transition infrastructure, including offshore wind and interconnector projects, amid a broader push to modernize Europe's power grid. The HVDC segment has attracted rising investor interest amid growing policy support for grid resilience and decarbonization. Rivals such as Prysmian (BIT:PRY) and NKT have also flagged strong order pipelines and capacity expansions, though Goldman highlighted delays among newer players. Nexans is scheduled to report first-half results later this month. Related articles Goldman Sachs upgrades Nexans to Buy on stronger HVDC market Apple: Citi says June demand pull-in leads to more uncertainties in H2 Is the market too hot? Yardeni weighs risks of correction or worse

Apple: Citi says June demand pull-in leads to more uncertainties in H2
Apple: Citi says June demand pull-in leads to more uncertainties in H2

Yahoo

time11-07-2025

  • Business
  • Yahoo

Apple: Citi says June demand pull-in leads to more uncertainties in H2

-- Apple's stronger-than-expected June-quarter iPhone sales may have come at a cost to the second half of the year, according to a note from Citi analysts. 'While we acknowledge upside from the pulled forward demand in the Jun-Q driven by tariffs pause and aggressive promotions in China, we remain cautious on the full year iPhone demand given AI delay and pending Section 232 decisions,' Citi said, in a note Friday. The firm adjusted its June-quarter iPhone unit forecast to 45 million, up 2 million from prior estimates, while cutting its September-quarter forecast by the same amount to 50 million. Citi maintained its full-year iPhone shipment forecasts at 226 million units for 2025 and 234 million units for 2026, representing year-over-year growth of -0.5% and +3.1%, respectively. In China, Apple (NASDAQ:AAPL) saw 'stabilizing' sales thanks to aggressive June 18 promotions and 'milder channel inventory digestion compared with Android,' Citi noted. The firm cited Counterpoint data showing that Apple's smartphone sell-through rose 8% year-over-year in the second quarter. On the Services side, Sensor Tower data showed App Store revenue growing at a 12% pace in the June quarter. Citi still expects LDD growth, despite Apple not providing specific guidance. It also sees no clear sign yet of EU revenue being impacted by recent Digital Markets Act (DMA) changes. Regarding AI, Citi said Apple 'appears to be more willing to engage with external LLM providers,' but added that the company is not abandoning its own models. 'Investors would turn more positive if Apple could acquire or invest a meaningful stake in an established AI provider,' analysts wrote. Related articles Apple: Citi says June demand pull-in leads to more uncertainties in H2 Is the market too hot? Yardeni weighs risks of correction or worse Barclays: Q2 U.S. earnings growth may be coming at a higher cost 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

Stocks are back in 'meltup' mode after a wild first half — and the S&P 500 could soar 60% by 2030, market vet says
Stocks are back in 'meltup' mode after a wild first half — and the S&P 500 could soar 60% by 2030, market vet says

Business Insider

time30-06-2025

  • Business
  • Business Insider

Stocks are back in 'meltup' mode after a wild first half — and the S&P 500 could soar 60% by 2030, market vet says

Chaos in markets sparked a lot of bearish prognostications in the first half, but investors have pushed through, and stocks look like they're back in "meltup mode." That's the view of Ed Yardeni, a longtime forecaster and the president of Yardeni Research. His "melt-up" thesis says the stock market embarked on a 1990s-style bull run starting in 2024, a stellar but ultimately unsustainable stock rally similar to what markets saw at the height of the dot-com bubble. To Yardeni, the S&P 500 reaching a new record last week confirms that the formation of a speculative bubble is one of the biggest risks to investors at the moment. Yardeni says he anticipates the S&P 500 reaching 6,500 by the end of the year, a gain of about 5% from levels on Monday. However, by the end of the decade, Yardeni's meltup thesis sees the benchmark index rising to 10,000, representing a 60% gain. "So far, the current bull market looks like a normal one, with the potential to match the returns of some of the best bull markets since the mid-1960s," Yardeni said. The upward climb in stocks is partly due to the continued strength of the US economy, the market vet told CNBC on Friday. While some economic data—like retail sales—has come in weaker-than-expected in recent months, that has largely reflected temporary uncertainties like tariffs. Stocks rallied to records last week on a handful of catalysts. Investors cheered Trump's announcement that the US and China had agreed to a framework trade agreement, and the market continued to rise to fresh records on Monday as investors digested further progress. Canada on Monday said it would cancel a digital services tax that had caused Trump to threaten to end trade talks. "Clearly, trade isn't a done issue yet, but I think will be by the end of the summer," Yardeni said. "You put it all together and I think it's a pretty solid economy, pretty solid stock market," he later added.

Everyone is talking 'TACO' trade. Investors say don't count on Trump chickening out
Everyone is talking 'TACO' trade. Investors say don't count on Trump chickening out

CNBC

time29-05-2025

  • Business
  • CNBC

Everyone is talking 'TACO' trade. Investors say don't count on Trump chickening out

"Trump Always Chickens Out," or TACO, is a gibe that has ruffled the U.S. president's feathers, and investors have, by now, seen it happening enough times to know his playbook. The phrase, coined by a Financial Times columnist, refers to Donald Trump's pattern of threatening steep tariffs that rattle markets, only to ease or postpone them after a sharp market sell-off, prompting a recovery. "Trump's style in negotiating deals is he huffs and he puffs, but he doesn't blow the house down," Ed Yardeni, president of Yardeni Research, told CNBC. In February, Trump announced a 25% tariff on imports from Canada and Mexico, before swiftly putting them on a 30-day pause just days later. And in early April, Trump slapped tariffs on more than 180 countries while escalating a tariff tit-for-tat with China, sending shock waves across financial markets. Global equities had a bloodbath in the days that followed. The U.S. benchmark S & P 500 fell about 12% between April 2 and April 8, and the MSCI world index excluding the U.S. fell over 8% in the same period. U.S. government bonds had a sell-off too. Yields on the benchmark 10-year yield jumped 10 basis points between April 2 and April 8, and the 20-year yield rose around 20 basis points, according to data on LSEG. Three stages of market reactions Then, on April 9, the president surprised markets yet again by cutting tariffs to 10% for nearly all U.S. trading partners for 90 days, leading to one of the biggest rallies on Wall Street . More recently, Trump announced 50% tariffs on goods from the European Union last Friday, sending investors trembling during the long holiday weekend, before walking back on the decision Sunday evening. U.S. equities rallied the following Tuesday, the week's first day of trading after a holiday. Trump has realized that the stock and bond markets can have a powerful influence on his decision-making, Yardeni said, adding that the bond market had "forced" the president's hand to postpone "reciprocal tariffs" by 90 days. "He bullies, he threatens. But there are checks and balances to what he can do as President," Yardeni said. The U.S. federal court ruled on Wednesday that Trump overstepped his legal authority in imposing "reciprocal" tariffs. There are three distinct stages of market reactions when it comes to TACO, said Aberdeen Investments' Ray Sharma-Ong, head of multi-asset investment solutions in Southeast Asia. First, an initial aggressive Trump policy rollout is accompanied by a sharp risk-off sentiment. That's followed by a policy walkback and a consequent rebound in equities. The last stage is a "post-walkback ambiguity," in which investors adopt a wait-and-see approach after the initial market rebound, attempting to price in Trump's next move, Sharma-Ong said. Trust issues with Trump That uncertainty makes TACO a problematic bet, market watchers said. "One day tariffs go up, the next they're 'negotiable.' It's very difficult to build conviction-based positions when the policy direction keeps shifting," said Brian Arcese, portfolio manager at Foord Asset Management. Trump's approach is also denting traders' confidence in U.S. policy and U.S. assets, said UBP's head of equity research in Asia, Calder Kieran. That was the case in April, when a U.S. asset exodus occurred, leading to a weakening of the dollar and a spike in U.S. Treasury yields. While those pullbacks create attractive opportunities to allocate or enter a position in certain stocks, investors reiterated that they are sticking with the fundamentals. "There certainly is a pattern here but I would not always count on the 'Trump put' to happen," said Kai Wang, Morningstar's Asia equity market strategist, suggesting that investors stick with high-quality stocks with less drawdown during bear markets. TACO is essentially a punchier version of the Wall Street coinage, "Trump put" — in other words, when markets start to fall and Trump acts to turn them around. "It may be dangerous to believe that a Trump put is set in stone," said Nomura's head of global macro research, Rob Subbaraman. That's because his administration's negotiating power weakens as markets and foreign governments increasingly believe in the Trump put, making it a less viable strategy for him to employ, Subbaraman explained. Billy Leung, investment strategist at Global X, is, likewise, skeptical about the long-term viability of the Trump put. "The market's reaction to tariffs has evolved. It's not just a fade-the-headline play anymore. The Trump put has weakened," he said. Investors should therefore move away from import-dependent names and toward companies that are actively rerouting supply chains and accelerating investment in reshoring sensitive sectors, Leung added. "Corporates are not waiting for clarity," he said.

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