⁠Wall St Engine
GOLDMAN: FED LIFTING WELLS ASSET CAP COULD BOOST EPS 14–19%

With the key constraint gone, Goldman sees upside from deposit growth and cost cuts. ROTCE could climb to 16.5–17.3% in 2026. $WFC might also issue preferreds to unlock more return-accretive capacity. https://t.co/hIYRGPONpu

FEDERAL RESERVE LIFTS $WFC ASSET CAP RESTRICTION

The Fed just removed the asset growth restriction it placed on Wells Fargo back in 2018. After reviewing the bank’s governance and risk management improvements, plus third-party assessments, regulators say the conditions for lifting the cap have been met. Other parts of the 2018 enforcement order still remain. - Wall St Engine
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⁠Wall St Engine
CDC VACCINE EXPERT RESIGNS: Dr. Lakshmi Panagiotakopoulos has stepped down from her Covid vaccine advisory role and is leaving the CDC, per Reuters. In an email to colleagues, she said she’s “no longer able to help the most vulnerable.”
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⁠Wall St Engine
HSBC Upgrades $ERJ to Buy from Hold, Raises PT to $57 from $45

Analyst comments: "With an all-time high backlog of USD 26.4 billion at the end of Q1, Embraer offers strong revenue generation in the coming quarters, supported by accelerated efforts to remove output bottlenecks and spread production more evenly over quarters. We expect 2025 to be marked by strong deliveries of executive jets (+28% year-over-year in Q1 2025) and defense products (KC-390 and A-29 Super Tucanos). A solid delivery performance is likely for Q2 2025, as the company has 9 aircraft ready to sell (finished goods), equating to 20% of total Q2 2024 deliveries. The Paris Air Show in mid-June may bring fresh headlines in terms of new firm orders, and EVE is at a critical point with its first full-scale prototype flight test pending (scheduled for mid-2025), a potential positive catalyst if successful."

Analyst: Cenk Orcan
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⁠Wall St Engine
RT @elonmusk: @AutismCapital It more than defeats all the cost savings achieved by the @DOGE team at great personal cost and risk
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⁠Wall St Engine
Trump: I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!! https://t.co/TXHkZ4lHRD
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⁠Wall St Engine
Elon Musk: Immense level of overspending will drive America into Debt Slavery https://t.co/pRhrRvHfYw
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⁠Wall St Engine
TRUMP: THE UNITED STATES HAD THE BEST MAY IN 30 YEARS. MAKE AMERICA GREAT AGAIN!!! https://t.co/NExYS4jGfZ
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⁠Capital Employed
Very interesting listen.

Anexo Group $ANX.L is probably a once in a generation opportunity -- the sort of cigar butt that a young Warren Buffett would have loved. We invited @IggyOnInvesting to explain why the stock is such a compelling long candidate 💰

Watch the full interview: https://t.co/WngXPkqVy0 - Event Driven Daily
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⁠Wall St Engine
Canaccord Genuity Downgrades $CRWD to Hold from Buy, Raises PT to $475 from $420

Analyst comments: "While we're encouraged by some early expansionary proof points within the Flex customer base and view CrowdStrike's business operations since the July 19th incident as nothing short of remarkable, we simply view risk/reward as more balanced at these levels with shares trading near 21x CY2026 sales and 70x CY2026 free cash flow for a ~20% top-line grower nearing a terminal free cash flow margin profile (we are modeling slightly above 30% in CY2026).

That is to say, we applaud CrowdStrike's success but think further upside to our model could be increasingly difficult to achieve with second-half net-new annual recurring revenue already contemplating a material ramp as well as a top-line year-over-year acceleration in CY2026.

CrowdStrike reported solid Q1 results to kick off FY2026, with ARR growing 22% year-over-year to $4.44 billion and net-new ARR of $212 million, slightly above seasonal expectations. The company announced a new $1 billion share repurchase program, signaling confidence in long-term growth and cash generation.

Margins came in below the prior-year comp (non-GAAP operating margin at 18% vs. 23% in Q1 FY2025), and EPS declined to $0.73 from $0.79. However, management raised full-year EPS guidance to $3.44–$3.56 (from $3.39–$3.51). Commentary remains anchored to a 27% free cash flow margin in Q4, with expectations of exceeding 30% in FY2027.

Shares are down ~6% in aftermarket trading despite solid guidance, after a strong recent run (+28% last 3 months, +43% YTD). While management remains optimistic for second-half acceleration, we believe the bar has risen. We are downgrading to Hold while raising our price target to $475 (from $420), reflecting 20x EV/sales and 68x EV/FCF on our CY2026 estimates. We continue to value CrowdStrike at a premium to cybersecurity peers given its strong execution, high ARR visibility, and category leadership."

Analyst: Kingsley Crane
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⁠Wall St Engine
KOSPI HITS BULL MARKET TERRITORY:

South Korea’s Kospi rose 2.5% Wednesday, now up over 20% since April lows, after Lee Jae-myung’s election win. Gains led by holding firms and brokers on hopes of higher shareholder returns. Won rose 0.5%. 10Y yields climbed on fiscal expansion risks.
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⁠Wall St Engine
AI startup Manus just launched a text-to-video tool that turns written prompts into full video stories in minutes. It’s rolling out to paying users now, with free access coming later. Manus is jumping into a crowded field with rivals like OpenAI’s Sora, Runway, and Google. https://t.co/aVLT0kUCPX
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⁠Wall St Engine
👀 $TSLA

Interest payments already consume 25% of all government revenue.

If the massive deficit spending continues, there will only be money for interest payments and nothing else! No social security, no medical, no defense … nothing. - Elon Musk
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⁠Wall St Engine
Windsurf says Anthropic is cutting off most of its direct access to Claude 3.7 and 3.5 models, with little notice. Windsurf now has to rely on third-party compute or user-supplied API keys, which may cause short-term slowdowns. This comes after being left out of Claude 4 access
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⁠Wall St Engine
MSCI ALL-COUNTRY WORLD INDEX RISES TO TOP FEBRUARY RECORD HIGH https://t.co/SXKEhJMMR3
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