Author: Claudia Assis

TSLA – Tesla’s ‘weaponized capacity’ is priced in, analysts say

Tesla Inc.’s “weaponized capacity” is priced in, analysts at Berenberg said in a note Wednesday, downgrading their rating on the stock to hold.

Tesla’s new factories “offer multi-year opportunity in capital and labor efficiency,” the analysts, led by Adrian Yanoshik, said in the note.

“However, we downgrade our rating to hold now that our buy thesis — based on misplaced fears of a price war — appears to have been accepted by the market,” they said.

Tesla last week hosted an investor day that was panned by investors for lacking specifics about a new, cheaper electric vehicle.

Also read: Tesla stock sinks nearly 7% after ‘muted, at best’ reaction to Elon Musk’s ‘Master Plan 3’

Moving into smaller vehicles “would open up a significant volume opportunity” for Tesla, the analysts said, but according to their model, the rollout will be slow and won’t break through the million-vehicle delivery run-rate until 2028.

And see: Rivian stock drops to lowest in six weeks on weaker 2023 outlook

Of the 46 analysts on FactSet who cover Tesla, 57% rate it a buy and 33% rate it a hold. Just 11% rate it a sell. The average price target on Tesla is $199.75, an upside of about a 9% over Wednesday prices.

Tesla shares have lost 34% in the last 12 months, compared with losses of around 4.4% for the S&P 500

MAT – Mattel relaunches Barney, hoping nostalgia could help sales

Mattel Inc. is reintroducing Barney on screens and on shelves, betting nostalgia among millennial fans of the purple dinosaur will help revive its sales.


said Monday the franchise relaunch includes movies and a TV show as well as toys, music and apparel. The new animated series is to debut globally next year, the toy maker said.

Mattel last week missed Wall Street expectations for its fourth quarter and called for another year of flat sales, saying that the economy was worse than it expected and that retailers are shrinking their orders.

Read more: Mattel stock falls 8% as holiday-season sales drop 22%, profit shrinks

Sales dropped for nearly all of its toy lines, and were flat in 2022. Mattel guided for a flat 2023 as well as a slight decline in per-share profit.

“We now worry consumer demand is faltering while inventory is elevated,” CFRA analyst Zachary Warring said in a recent note.

Warring lowered his rating on Mattel shares to hold “after a disappointing quarter with disappointing guidance” and said he continued to like competitor Hasbro Inc.

more as Hasbro shares trade more in line with their historical average.

Don’t miss: As D&D and Barbie square off this year, Mattel looks like the winner, analyst says

Hasbro is scheduled to report quarterly earnings before the bell Thursday.

Analysts polled by FactSet expect the company to report adjusted per-share sales of $1.33 on sales of $1.72 billion, which would compare with adjusted EPS of $1.21 on sales of $2.01 billion in the year-ago period.

Shares of Mattel have dropped 24% in the last 12 months, compared with losses of around 7% for the S&P 500 index.

SUMO – Sumo Logic stock up 15%; PE heavyweight nears deal for software company, WSJ says

Shares of Sumo Logic Inc.

rallied more than 15% in the extended session Wednesday after The Wall Street Journal reported that private-equity firm Francisco Partners is nearing a $1.7 billion deal for the software provider. The deal could be unveiled as soon as Thursday, the report said, citing people familiar with the talks. Sumo Logic has a market cap of around $1.46 billion. Shares of Sumo Logic ended the regular trading day up 0.9%

TSLA – Tesla’s Elon Musk found not liable in ‘funding secured’ trial

Tesla Inc. Chief Executive Elon Musk was found not liable on Friday in a federal trial in San Francisco over his “funding secured” and other tweets in 2018.

Musk testified last week he considered the tweets around his idea of taking Tesla

private his way of “doing the right thing” for all Tesla shareholders.

U.S. District Judge Edward Chen ruled earlier that Musk’s tweets about taking Tesla private were not true and that Musk acted with recklessness. It was still up to jurors to decide, however, if the tweets were material to investors and if the falsehoods caused investor losses.

Jurors in the three-week long trial also heard from other Tesla current and previous executives as well as board members. The trial had some humorous moments, as when a plaintiff’s attorney called Musk “Mr. Tweet.”

Tesla shares rose 1.6% in the extended session Friday after ending the regular trading day up 0.9%. The stock has lost 36% in the past 12 months, compared with losses of around 8% for the S&P 500 index.

HOLX – Hologic’s fiscal Q1 tops views, company raises guidance for the year

Hologic Inc.

stock rose nearly 3% in the extended session Wednesday after the medical technology company reported quarterly earnings and sales that topped Wall Street views and raised its outlook for fiscal 2023. Hologic earned $187.4 million, or 75 cents a share, compared with $499.2 million, or $1.95 a share, in the year-ago period. Adjusted for one-time items, Hologic earned $1.07 a share. Revenue fell 27% to $1.07 billion, mostly thanks to lower sales of COVID-19 assays and supply-chain “challenges” with semiconductor chips used in the company’s breast-health business, it said. Analysts polled by FactSet expected Hologic to report adjusted earnings of 91 cents a share on revenue of $1 billion in the quarter. “We had a strong start to our fiscal year with double-digit organic revenue growth ex. COVID-19 in our diagnostics and surgical businesses, as well as encouraging signs of recovery in our breast health business,” Chief Executive Steve MacMillan said in a statement. Hologic upped its fiscal 2023 revenue guidance to between $3.85 billion and $4 billion, compared with a previous guidance of revenue between $3.7 billion and $3.9 billion. It raised adjusted EPS guidance to between $3.55 and $3.85, from an earlier outlook of adjusted EPS between $3.30 and $3.60. That highlights “the confidence we have in our businesses despite an uncertain macro environment,” MacMillan said. Shares of Hologic ended the regular trading day up 1.7%.

FDX – FedEx to cut executive team by more than 10%

FedEx Corp. said Wednesday it will cut its executive team by more than 10% and “consolidate” some teams and jobs as it aims to become a “more efficient, agile organization.”

Shares of FedEx

traded more than 4% higher after the news.

Employees who are affected were being notified on Wednesday, the retailer said.

“Saying goodbye to longtime colleagues and friends whom we value and respect is extraordinarily difficult,” Chief Executive Raj Subramaniam said in a letter to employees. “Unfortunately, this was a necessary action to become a more efficient, agile organization.”

FedEx can be “stronger by better aligning the size of our network with customer demand,” he said. “While we have already taken many actions to that end, it was necessary to also look closely at the size of our leadership team and functions that could be consolidated.”

FedEx stock has lost 21% in the past 12 months, compared with losses of 11% for the S&P 500 index

TSLA – Tesla stock jumps nearly 12% to best week in a decade

Tesla Inc. stock extended its rally on Friday, pushing weekly gains to nearly 35%, as investors cheered the EV maker’s earnings and top executive Elon Musk’s assurances that demand is not a problem at Tesla.

Tesla shares were on pace for their highest close since Dec. 9, when they closed at $179.05. The stock also extended its winning streak to a sixth day, up 41% in that span.

The weekly gains are on track for the best since the week ended May 10, 2013 when the stock rose 40.7%.

Tesla on Wednesday reported mixed quarterly results, with revenue slightly below Wall Street expectations, but Wall Street has focused on the optimism in Tesla’s production outlook for 2023.

Chief Executive Elon Musk also said he wanted to put the “concern to rest” that Tesla is going through demand problems. January orders are stronger than ever, and demand far outstrips Tesla’s rate of production.

Read also: Tesla stock soars as analysts say latest results may quiet the bears for now

Tesla earlier this month cut prices for its EVs in the U.S. and Europe by as much as 20% depending on region and model, but Musk said that the price cuts would broaden Tesla vehicles’ appeal to buyers.

Other well-received news on Wednesday included the announcement that a “next generation” vehicle platform is in the wings, with details at the Tesla investor day on March 1, and that production of the Cybertruck, Tesla’s electric pickup, is on track for later this year and for volume production in 2024.

Don’t miss: ‘Poker move’ or wake-up call? Wall Street weighs in on Tesla’s price cuts

On Friday, Morgan Stanley’s Adam Jonas added his voice to those thinking the price cuts, far from being a sign of trouble for the EV maker, may have ushered a new era in EVs and a “great deflation.”

“While it’s still early days following the Tesla price cuts, we believe history will reflect upon this time as the moment when changes in design, manufacturing technology, and scale enabled profound deflation in the price of EVs,” Jonas said.

Changes in industry composition and market share may take years to play out, “but we believe the EV forecasts and manufacturing plans of competing EV players (startup and legacy) may potentially need to be fundamentally reconceived,” he said.

Deflation “transformed the automotive competitive landscape,” and prices fell even more sharply after Ford Motor Co. introduced its Model T and revamped its assembly line, Jonas said.

Tesla shares still have to catch up to the broader market, however. The shares are down about 35% in the last 12 months, compared with losses of around 5% for the S&P 500 index.

RIDE – An analyst just dropped his price target on Lordstown Motors stock to $1

Wall Street remains worried about Lordstown Motors Corp. ‘s cash burn and production risks, with one analyst slashing his price target on the electric-vehicle maker’s stock to $1 and warning that the electric truck maker could run out of cash by year’s end.

Lordstown RIDE late Wednesday reported a wider quarterly loss than analysts expected, but the stock rallied as investors cheered the company’s promise to start “limited production” of its Endurance electric pickup truck by next month. The stock rose again on Thursday, chipping away at weekly losses of around 2%.

The electric-vehicle maker in June added a “going concern” warning to regulatory filings, following the departure of top executives and doubts over its order book, with the company clarifying that orders were not binding.

Without additional capital, the company runs out of cash by year-end, RBC analyst Joseph Spak said in his note Thursday. It does have a $400 million line of credit and thus “some flexibility” and presented some options, “but we can’t recommend investors get involved until a clearer strategic and financial picture emerge,” he said.

Spak slashed his price target on the shares to $1, from $5, representing a downside of more than 80% from Thursday’s prices. He also significantly lowered his sales forecast to a peak of 7,500 in 2025, from a previous forecast of sales peaking in the mid-40,000 by that year.

“Management needs to issue new roadmap that will come, with time. But until then, we’d stay away,” he said.

Lordstown said Wednesday the commercial deliveries of its Endurance pickup truck were pushed back to the second quarter of 2022, meaning the company would miss a first-mover advantage as both Ford Motors Co.

and General Motors Co.

will have launched electric pickups by then, Spak said.

Emmanuel Rosner at Deutsche Bank also lowered his price target on Lordstown following earnings, to $7 from $8, echoing some similar concerns about the company’s ability to execute its plans.

The “imminent start of production in September and what appears to be a defined path toward ramping volumes afterwards” was encouraging, he said.

“Overall, though, we continue to see considerable risk and uncertainty towards a
volume ramp-up. Nearest term, Lordstown is in need of additional capital,” he said.

“But more fundamentally, the company is still facing considerable operational risk as it works to validate its proprietary hub-motor technology, generate fleet customer demand, manufacture and sell its trucks profitably despite rising costs and low scale, in an increasingly competitive market,” Rosner said.

There’s also risk that demand for the Endurance may not be as high as the company believes, he said. During the call with analysts after results, Lordstown did not disclose its order book. Without that and with EV pickup competition from Ford around the quarter, it’s hard to estimate demand for the Endurance, he said.

Lordstown shares have lost more than 70% so far this year, contrasting with gains of around 18% for the S&P 500 index.

AMZN – to require warehouse workers to wear masks again Inc.

will require warehouse and logistics workers to mask up again beginning on Monday, regardless of vaccination status. The company called the move a response to “the concerning spread of new COVID-19 variants in the U.S.” plus guidance from public-health and its own medical experts. The company on Thursday pushed back the date its office workers will have to return to offices until early January, four months later than it planned. Amazon has not yet required employees to be vaccinated, unlike other tech giants such as Google parent Alphabet Inc.


and Facebook Inc.
An spokesperson said the online retailer is “monitoring the situation closely and will continue to follow local government guidance and work closely with leading medical healthcare professionals, gathering their advice and recommendations as we go forward to ensure our buildings are optimized for the safety of our teams.” shares were flat in the extended session Friday after ending the regular trading day down 0.9%.

TSLA – Tesla's ‘noisy quarter' gets mixed reviews from Wall Street

Tesla Inc.’s record quarter earned some praise among investors, but the stock fell on Tuesday on a mix of concern for the near-term prospects for the Silicon Valley electric-car maker and less appetite for tech and tech-related names.


late Monday reported a profit of more than $1 billion and sales that beat expectations, but also delayed the launch of its commercial truck, the Semi, and said that the chip shortage continued to curb its production.

The stock fell more than 3% in midday trading, the third straight time that the shares traded lower on the first trading day after earnings. That further eroded Tesla stock’s performance this year, down 10%. That contrasts with gains of around 17% for the S&P 500 index

in the same period.

Tesla reported “strong” margins for the April-June period but it was a “noisy quarter,” Jeffrey Osborne with Cowen said in a note Tuesday. Moreover, guidance for 2021 “and comments about next continue to be vague,” he said, keeping his equivalent of a hold rating on Tesla stock.

News that Chief Executive Elon Musk would be unlikely to be at future Tesla earnings calls was “odd,” Osborne said, adding that on the late Monday’s call Musk took only 16 minutes of questions from Wall Street analysts and spent most of the hourlong call answering “softballs from retail and institutional investors.”

See also: Elon Musk says Tesla will open up ‘Supercharger’ stations to other EVs

Emmanuel Rosner at Deutsche Bank, who has a buy rating on Tesla, said that the “particularly strong” results were even more impressive considering that Tesla only saw a small benefit from “large” price increases in the U.S. for some of its vehicles late in the quarter, “pointing additional margin upside in 2H.”

“Mid-term, we continue to believe Tesla’s impressive trajectory for its battery
technology, capacity and especially cost could help accelerate the world’s shift to
electric vehicles and extend Tesla’s EV lead considerably,” Rosner said.

John Murphy with B. of A. Securities struck a more cautious tone. Despite the beat, “competition is fierce and heating up,” he said. “(Tesla’s) operating environment is shifting from that of a vacuum to an increasingly crowded space.”

Related: Aurora to go public in SPAC deal, promises autonomous vehicle by 2023

The quarterly beat was “very much helped by positive pricing dynamics and good execution,” and Murphy raised his price target on the stock to $800 from $750, which represents an upside around 26% from Tuesday’s prices. He kept B. of A.’s neutral rating on the stock.

Joseph Spak at RBC Capital also raised his price target on Tesla shares, to $745 from $718, and kept the equivalent of a hold rating on the stock. Spak also praised the EV maker’s margins, but highlighted worries about its new battery format.