Goldman: Tesla shares to drop 30% in the next 6 months due to increased competition
By Tae Kim
Tesla’s electric car sales will suffer due to increased competition from other luxury automakers, according to Goldman Sachs.
The firm resumed coverage of Tesla with a sell rating, predicting the competition will cut into the company’s share of the electric car market.
Analyst David Tamberrino gave a $210 six-month price target for Tesla shares, representing 30 percent downside to Friday’s closing price.
The analyst noted the significant number of electric vehicle launches from large automakers — including Audi, BMW, Jaguar and Porsche — expected over the next several years.
Verizon shares fall after Barclays downgrade citing high valuation that caps ‘upside potential’
By Michael Sheetz
Barclays lowered its rating on Verizon’s stock on Tuesday to equal weight from overweight, bringing its rating in line with other telecommunications companies in what Barclays sees as a shrinking industry.
“While we like [Verizon’s] near-mid term prospects, we believe valuation will cap upside potential from present levels and therefore downgrade it,” Barclays analyst Kannan Venkateshwar said.
Barclays also lowered its price target on Verizon to $50 per share from $56 per share.
Gold Prices Climb as Argentina Crisis Worsen
Gold prices rose on Wednesday morning in Asia, driven by the ongoing currency crisis in Argentina, which economists expect could lead to a recession, a weaker peso and higher inflation.
With a number of emerging markets including Argentine, Turkey and Indonesia battling currency crises, the demand for gold, which is widely seen as a safe haven asset, is likely to rise.
“The dip in the metals bull market appears near its nadir… Gold has declined 15% from its peak this year, yet remains in a rising trajectory in this rate-hike cycle despite the stronger trade-weighted broad dollar and record-setting stock market. A bit of sustained mean reversion in the stock or dollar should unlock the cage for the well-rested gold bull,” he said.
“Getting past the expected Federal Reserve rate hike in September should be positive for gold, in recovery mode from good support near $1,165 an ounce. Looking at what gold ETFs have done during this Federal Reserve tightening cycle, we believe prices are likely to rise soon.”
Cisco’s Stock May Reach Highest Price in 18 Years
By Michael J. Kramer
Cisco Systems, Inc.’s (CSCO) stock is up almost 25% in 2018, and it looks like shares are going even higher. Analysts have been boosting their earnings and revenue estimates, and as a result, increasing the price targets. Now, analysts see shares rising 7% from its current stock price around $47.75.
Analysts now see the networking company’s stock rising to an average price target of almost $51 from previous targets of $39.20, at the start of the year.
The outlook for revenue improves, with 2019 forecasts seen growing by more than 4% to $51.5 billion from prior estimates of $50.7 billion. Meanwhile, revenue estimates for 2020 show an increase of almost 3% to $52.9 billion from previous estimates of $52.5 billion.
JPMorgan’s Hot Stock May Drop 7%
By Michael J. Kramer
JPMorgan Chase & Co’s (JPM) stock has rebounded by more than 10% since hitting a low of almost $102 in early July to its current price of almost $114.50. Investors rewarded the stock after the company reported strong second-quarter results, sending shares higher. But the excitement appears to be fading, and the stock may be due to drop by as much as 7% in the coming weeks, based on technical analysis.
Now shares are trending lower and are nearing a technical uptrend around $112. Should the stock fall below that uptrend, it may cause shares to drop to the next level of technical support 7% lower at roughly $106.5.
Another bearish warning sign may be the declining levels of volume as the stock was rising during July. It suggests the number of buyers was fading. Now, the stock has been falling in recent days on increasing levels of volume. Suggesting the number of sellers is growing. The relative strength index (RSI) – another technical indicator, has also been trending lower. It suggests bullish momentum is leaving the stock.
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