We are not changing our GM fair value estimate following what we see as a solid first quarter and one that could have been much worse given U.S. inflation, high commodity costs, and ongoing supply chain issues reducing vehicle production.
Strong growth in search advertising and cloud were partially offset by higher-than-anticipated deceleration at YouTube.
Solid results and guidance hold our fair value estimate stable, and we see shares as undervalued.
Inflation remains a challenge, and we expect higher costs (in labor, transportation, and ingredients like high fructose corn syrup) to persist for the next several quarters. Shares trade at a 10% premium to our intrinsic valuation, and we’d suggest investors remain on the sidelines.
Its board has unanimously given Musk the OK to take the company private in an all-cash transaction for $54.20 per share, slightly below our $58 fair value estimate.
Management highlighted that demand trends have improved significantly, particularly for international travel.
After strong first quarter, the company is seeing benefits across its business.
We suspect Verizon will continue balancing its promotional efforts to maintain modest customer growth while also aiming to limit competitive intensity.
Snap reported first-quarter results slightly below our projections due partially to the Ukraine war and various macro headwinds. We have reduced our fair value estimate for Snap to $63 from $66.
We are reducing our fair value estimate as we incorporate the effects of significantly higher near-term fuel prices into our model.
There were some mixed updates to current guidance, with net interest income now expected to grow faster.
The quarter exemplified our long-term thesis that Tesla has the ability to raise prices, and reduce unit production costs and overhead expenses, all of which will drive higher profits.
We continue to like AT&T’s strategic position and its network investment plans, which we expect will deliver improving revenue and profit growth over the next several years.
Alleghany purchase looks like another value-enhancing deal.
The combination of skyrocketing prices throughout the grocery store and gas pump plus mounting interest rates could prompt trade down to lower-priced alternatives.
We maintain our narrow moat but lower our fair value estimate to $280 from $305, due to much lower subscriber growth in 2022 and slower margin expansion.
Despite headwinds from inflation, the war in Ukraine, and supply chain issues, our fair value estimate for the wide-moat drugmaker remains unchanged.
Despite results that disappointed the market, the company's underlying fundamentals and prospects for material earnings growth remain solid.
The wide-moat bank's wealth-related fees are still growing, but not as fast as we expected.
Will Musk pursue the acquisition?
Based on this quarter’s results, we do not plan to materially alter our current fair value estimate of $78 for the bank, and we view shares as undervalued.
Investment banking fees flat and the outlook doesn't look positive.
We may increase our fair value estimate to account for cash flows generated since our last valuation change.
We believe the probability of Twitter accepting the $54.20 per share offer is likely below 50%.
We're keeping our fair value estimate at $152 and see higher expenses today leading to a better competitive position tomorrow.
Inflows remained impressive in Q1 despite market volatility.
Higher-near term oil prices leads to increased valuation estimates.
Our outlook for the lithium producers under our coverage is unchanged.
Twitter’s offer limited Musk's stake, which may have curbed his attempt to become more of an active investor and/or take over the firm.
With a $40 fair value estimate, we think the stock is substantially undervalued
Citigroup is not pretty, but it's our top pick
We believe Musk's communication to the firm, other shareholders, and the platform's 217 million daily active users could affect Twitter’s long-term strategy.
We maintain our $700 per-share fair value estimate and narrow moat rating for Tesla.
We are raising our fair value estimate for Moderna to $232.
Thanks to an expected modest impact on revenue from the war in Ukraine, we're trimming our fair value estimate from $630.
Here is how we expect the wide-moat firm to manage the property/casualty insurer.
We are maintaining our fair value estimate.
JD has a unique advantage in the Chinese e-commerce sector and is the best play of the rising middle class across China in our view.
Oracle’s third quarter was marked by some bright spots but ultimately came in as a disappointment.
McDonald's and Starbucks recently announced that they intend to suspend all business in Russia until further notice.
We do not expect to change to our fair value estimate for Coca-Cola, and expect minimal change to Pepsi's FVE.
This acquisition helps Google compete more effectively with Amazon and Microsoft.
We see this scenario as highly unlikely, but looking at ways Europe could accomplish such a massive task has important insights for investors.
What will higher oil prices mean for production and consumption?
For both networks, transactions related to Russia accounted for 4% of net revenue.
We plan no change to our fair value estimate; shares fairly valued.
Although we expect some negative impact on our fair value estimates, we remain focused on long-term value.
We expect to raise our fair value estimate, leaving shares of the no-moat retailer as very undervalued.
We don't expect to change our fair value estimates for our European food value chain coverage list.
We raise our fair value estimate to $545 per share from $500 as we incorporate stronger top-line growth as well as operating leverage.