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UBS raises Boeing price target, says shares could rise as much as 50 percent

By David Reid


Analysts at Swiss bank UBS have raised their 12-month price target for Boeing shares to $515, more than 50 percent higher than their current level.


The bank also raised the airline manufacturer to a “buy” rating from its previous “neutral” stance.


Following the note’s release to market, shares of Boeing rose nearly 2 percent in pre-market trading to $338.


UBS said short-term concerns such as supplier issues that have slowed aircraft deliveries and potential trade tariff headwinds might result in pullbacks, but investors should see those as “attractive buying opportunities.”


Boeing is targeting $50 billion per annum in services contracts by 2025. UBS said while that is unlikely, evidence showed that services could be worth $35 to $40 billion to the company by the mid-2020s.



American Express Breakout May Boost Stock 12%

By Michael Kramer


Shares of American Express Co. have stagnated for most of 2018, dramatically underperforming the S&P 500’s rise of more than 6%. That may be about to change, as shares break out and push the stock higher by more than 12%. A key driver may be robust growth, with earnings and revenue forecast to rise 20% in 2018, analysts say.


One reason why the stock may be breaking out is the strong business forecast. Analysts see earnings climbing by nearly 24% this year, followed by estimates for better than 10% growth in 2019 and 2020. Revenue is expected to grow by more than 20% this year, followed by forecasts of more than 7% growth over the next two years.


The optimistic forecast also has analysts bullish on the stock, with shares forecast to rise by 8% to an average price target of $111.




AUD/USD: upside potential on a technical basis and news of China/US seeking to make amends

By Ross J Burland


AUD/USD was stabilising in Asia overnight, benefitting from the sounds of peace drums with respect to China’s and the US trade spat. The two leading nations, after two months of stalemate and no talks, are to meet later on this month and that headline was a booster of the Aussie bulls, also benefitting from the Aussie jobs data when unemployment fell even in light of a higher participation number, despite the headline data missing expectations.


Meanwhile, it is going to be a busy end of the month in that case because we also have the Fed Minutes from the most recent FOMC meeting held on July 31-Aug. 1, which will be published just before the Jackson Hole that takes place on August 23 as well running to the 25th.



USD/JPY: better bid over risk-on Wall Street, upside favoured above 111.50

By Ross J Burland


The greenback is a two-sided coin


However, should the trade spat between China and the US start to diminish, that may put the breaks on the dollar in the near term as risks of import tariffs would otherwise likely fuel inflation at the same time the Fed is in the midst of a rate hike cycle. However, the very fact that the Fed is raising rates gives the dollar the edge and the offshore shortfall will keep the greenback underpinned for the foreseeable future. USD/JPY Continues to find support against 110.00-50 and while holding there, the risk profile favours the upside.



Pound-to-Euro Rate Threatening an Upside Breakout says RBC Capital Markets

By Joaquin Monfort


The Pound-to-Euro rate is currently the most interesting Sterling pair from a short-term trading perspective, according to Elsa Lignos, a managing director of FX strategy at RBC Capital Markets.


The pair is descending in a trend-channel on the charts but this may be vulnerable to an upside erosion because a lot of bad news is already “priced in”.


“We are uncomfortable over chasing GBP much lower now – especially in the absence of any tangible signs that we’re heading towards a no-deal Brexit,” says Viraj Patel, a currency strategist at ING Group.


Comments from UK government officials acknowledging the mounting prospect of a “no deal Brexit” have also weighed on Sterling during August, although the last week has seen the Pound-to-Euro rate recoil higher by more than 100 points, from 1.1070 to 1.1180 on Friday. It has been as high as 1.1239.


For now, the exchange rate remains stuck in its descending channel and there is some scope for it to continue lower still. Recent news that ratings agency Fitch might downgrade the UK’s credit rating because of the increased risk of a “cliff-edge Brexit” occurring in March has weighed on Sterling, driving EUR/GBP higher and the Pound-to-Euro rate lower.



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