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SOUTHWEST DROPS “BAGS FLY FREE”
Starting May 29, Southwest $LUV will charge $35 for the first checked bag and $45 for the second. Elite flyers and credit card holders still get bags free. The airline is also rolling out basic economy tickets with no changes or seat selection. https://t.co/xR2eLLjb1C
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SOUTHWEST DROPS “BAGS FLY FREE”
Starting May 29, Southwest $LUV will charge $35 for the first checked bag and $45 for the second. Elite flyers and credit card holders still get bags free. The airline is also rolling out basic economy tickets with no changes or seat selection. https://t.co/xR2eLLjb1C
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Wall St Engine
Barclays Downgrades $CRWV to Equalweight from Overweight, Raises PT to $100 from $70
Analyst comments: "As we discussed in our initiation, we believe an EV/EBIT multiple is, for the time being, likely the best way to model the company, though importantly using an EV that reflects the debt load CRWV will need to take on over the coming years. At current levels, CoreWeave is trading at a 41x EV/EBIT CY26 multiple (assuming ~$31.4 billion in gross debt in CY26), and while we expect growth to remain strong, we are not sure there are fundamental arguments to push this much higher, with the company trading at a healthy premium already to the rest of the space. We continue to like CRWV for its long-term opportunity and exposure to the generative AI theme, but given valuation and lacking a near-term catalyst, see limited upside in the near term from here. Hence, our downgrade to Equalweight. With this, we raise our price target to $100 (from $70) to account for the recent run in share price, which is based on a 40x CY26E EV/EBIT multiple (was 27x), CY26E EBIT estimate of $2.21 billion (was $2.52 billion), and 2026E net debt of $31.4 billion (was $28.4 billion)."
Analyst: Raimo Lenschow
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Barclays Downgrades $CRWV to Equalweight from Overweight, Raises PT to $100 from $70
Analyst comments: "As we discussed in our initiation, we believe an EV/EBIT multiple is, for the time being, likely the best way to model the company, though importantly using an EV that reflects the debt load CRWV will need to take on over the coming years. At current levels, CoreWeave is trading at a 41x EV/EBIT CY26 multiple (assuming ~$31.4 billion in gross debt in CY26), and while we expect growth to remain strong, we are not sure there are fundamental arguments to push this much higher, with the company trading at a healthy premium already to the rest of the space. We continue to like CRWV for its long-term opportunity and exposure to the generative AI theme, but given valuation and lacking a near-term catalyst, see limited upside in the near term from here. Hence, our downgrade to Equalweight. With this, we raise our price target to $100 (from $70) to account for the recent run in share price, which is based on a 40x CY26E EV/EBIT multiple (was 27x), CY26E EBIT estimate of $2.21 billion (was $2.52 billion), and 2026E net debt of $31.4 billion (was $28.4 billion)."
Analyst: Raimo Lenschow
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Truist Securities Upgrades $WING to Buy from Hold, Raises PT to $400 from $274
Analyst comments: "We are upgrading our rating on WING to a Buy, from Hold, and increasing our estimates and price target to $400, from $274. We have increased confidence that WING's same-store sales will trough in 2Q25 and accelerate in 2026, with the Truist Card Data pointing to improved trends in May, a potentially significant incremental sales lift with the 'Smart Kitchen' rollout, and ongoing sales drivers including marketing, digital, and menu innovation. We also expect sustained mid-teens new store development to support valuation expansion and see potential upside to WING's long-term development targets. Our target EV/EBITDA (2026E) multiple of 42x is supported by our 20-year DCF and is a discount to the approximately 45x three-year average."
Analyst: Jake Bartlett
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Truist Securities Upgrades $WING to Buy from Hold, Raises PT to $400 from $274
Analyst comments: "We are upgrading our rating on WING to a Buy, from Hold, and increasing our estimates and price target to $400, from $274. We have increased confidence that WING's same-store sales will trough in 2Q25 and accelerate in 2026, with the Truist Card Data pointing to improved trends in May, a potentially significant incremental sales lift with the 'Smart Kitchen' rollout, and ongoing sales drivers including marketing, digital, and menu innovation. We also expect sustained mid-teens new store development to support valuation expansion and see potential upside to WING's long-term development targets. Our target EV/EBITDA (2026E) multiple of 42x is supported by our 20-year DCF and is a discount to the approximately 45x three-year average."
Analyst: Jake Bartlett
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Goldman Sachs Reiterates Buy Rating on $CRM, PT $340
Analyst comments: "We reiterate our Buy rating and $340 price target on Salesforce ahead of F1Q26 earnings (5/28). While artificial intelligence likely remains a focal point, we don’t anticipate material updates on Agentforce’s revenue contribution until Dreamforce (10/14). In the meantime, we look toward other strength points from Data Cloud and AI (>$900 million annual recurring revenue). Heading into earnings, we expect revenue +7%, current remaining performance obligations +10%, non-GAAP operating margin of 33%, and non-GAAP EPS of $2.56. We feel comfortable with these and for Salesforce to exit FY26 at similar net new revenue levels as FY24, where overhangs from an elevated investment period can be comparable to FY26’s perceived risks. We believe current guidance (+7–8% growth) and stock performance year-to-date (−17% vs. Nasdaq flat) has adequately accounted for: 1) Incremental pressure to Public Sector ($5.7 billion ARR in F4Q25) associated with DOGE, 2) Small/Medium Business and Create-and-Close execution, 3) CFO/COO transition. With broader software citing largely stable spending trends, we see Salesforce well-positioned to capture greater wallet share with the maturation of strategic long-term investments, coupled with emerging product momentum that could compound and support revenue re-acceleration. We further note F1Q cRPO growth is typically not a material forward indicator and see limited upside to Street expectations (10% YoY constant currency), whereas F2Q cRPO guidance will likely be a focal point. Despite modest incremental FX tailwind, we don't expect an upward revision to FY26 revenue. We continue to see Salesforce capable of delivering durable growth, 35%+ operating margin, and achieving $17–18 free cash flow per share in FY27, offering a compelling risk/reward at 17x EV/CY26 free cash flow (vs. peers' ~28x)."
Analyst: Kash Rangan
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Goldman Sachs Reiterates Buy Rating on $CRM, PT $340
Analyst comments: "We reiterate our Buy rating and $340 price target on Salesforce ahead of F1Q26 earnings (5/28). While artificial intelligence likely remains a focal point, we don’t anticipate material updates on Agentforce’s revenue contribution until Dreamforce (10/14). In the meantime, we look toward other strength points from Data Cloud and AI (>$900 million annual recurring revenue). Heading into earnings, we expect revenue +7%, current remaining performance obligations +10%, non-GAAP operating margin of 33%, and non-GAAP EPS of $2.56. We feel comfortable with these and for Salesforce to exit FY26 at similar net new revenue levels as FY24, where overhangs from an elevated investment period can be comparable to FY26’s perceived risks. We believe current guidance (+7–8% growth) and stock performance year-to-date (−17% vs. Nasdaq flat) has adequately accounted for: 1) Incremental pressure to Public Sector ($5.7 billion ARR in F4Q25) associated with DOGE, 2) Small/Medium Business and Create-and-Close execution, 3) CFO/COO transition. With broader software citing largely stable spending trends, we see Salesforce well-positioned to capture greater wallet share with the maturation of strategic long-term investments, coupled with emerging product momentum that could compound and support revenue re-acceleration. We further note F1Q cRPO growth is typically not a material forward indicator and see limited upside to Street expectations (10% YoY constant currency), whereas F2Q cRPO guidance will likely be a focal point. Despite modest incremental FX tailwind, we don't expect an upward revision to FY26 revenue. We continue to see Salesforce capable of delivering durable growth, 35%+ operating margin, and achieving $17–18 free cash flow per share in FY27, offering a compelling risk/reward at 17x EV/CY26 free cash flow (vs. peers' ~28x)."
Analyst: Kash Rangan
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Goldman Sachs Upgrades $CMI to Buy from Neutral, Raises PT to $431 from $410
Analyst comments: "We upgrade CMI to Buy from Neutral as we see (i) structurally higher Power Systems profitability (pricing structure beyond data center), (ii) derisked EPA 2027 expectations, and (iii) U.S. truck demand expectations that have been significantly reduced while used sleeper inventory levels are now down 30% year-over-year. CMI is trading at 16x our mid-cycle EPS estimate of $20.50 based on prior cycle performance, and 14x potential mid-cycle if the improved Power Systems margins are sustained longer-term. From an end market standpoint, we acknowledge our call could be early, as we expect production to bottom in 4Q25/1Q26 amid elevated new vocational truck inventories, but we believe CMI's Power Systems performance is a meaningful offset."
Analyst: Jerry Revich
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Goldman Sachs Upgrades $CMI to Buy from Neutral, Raises PT to $431 from $410
Analyst comments: "We upgrade CMI to Buy from Neutral as we see (i) structurally higher Power Systems profitability (pricing structure beyond data center), (ii) derisked EPA 2027 expectations, and (iii) U.S. truck demand expectations that have been significantly reduced while used sleeper inventory levels are now down 30% year-over-year. CMI is trading at 16x our mid-cycle EPS estimate of $20.50 based on prior cycle performance, and 14x potential mid-cycle if the improved Power Systems margins are sustained longer-term. From an end market standpoint, we acknowledge our call could be early, as we expect production to bottom in 4Q25/1Q26 amid elevated new vocational truck inventories, but we believe CMI's Power Systems performance is a meaningful offset."
Analyst: Jerry Revich
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Citi Reiterates Buy Rating on $TTD, Maintains PT at $82
Analyst comments: "We attended the Programmatic I/O conference last week, which while not perfect, was still incrementally positive for TTD. We also highlight key themes and data from Upfronts, which were generally positive for connected TV and The Trade Desk. In our view, if you’re waiting for Amazon DSP to impact TTD budgets in 2H25, you’ll be waiting longer than expected. Not to undermine Amazon’s strengths, but TTD has them too, and it seems like Amazon DSP dollars are coming from existing Amazon budgets, not from spend that was on, or was going to be on, TTD. Kokai feedback though shows there’s still things to work through for TTD. Macro feedback was mixed, with not much focus at the conference, and overall CTV trends continue to be positive. We saw another year of positive trends at Upfronts, with greater adoption of CTV as a portion of total TV spend, and of decisioned programmatic as a portion of CTV."
Analyst: Ygal Arounian
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Citi Reiterates Buy Rating on $TTD, Maintains PT at $82
Analyst comments: "We attended the Programmatic I/O conference last week, which while not perfect, was still incrementally positive for TTD. We also highlight key themes and data from Upfronts, which were generally positive for connected TV and The Trade Desk. In our view, if you’re waiting for Amazon DSP to impact TTD budgets in 2H25, you’ll be waiting longer than expected. Not to undermine Amazon’s strengths, but TTD has them too, and it seems like Amazon DSP dollars are coming from existing Amazon budgets, not from spend that was on, or was going to be on, TTD. Kokai feedback though shows there’s still things to work through for TTD. Macro feedback was mixed, with not much focus at the conference, and overall CTV trends continue to be positive. We saw another year of positive trends at Upfronts, with greater adoption of CTV as a portion of total TV spend, and of decisioned programmatic as a portion of CTV."
Analyst: Ygal Arounian
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JPMorgan Reiterates Overweight Rating on $MRVL, Maintains PT at $130
Analyst comments: "Marvell is set to report earnings Thursday, and we expect a continued volume ramp of its two large AI ASIC programs (Amazon Trainium 2 ASIC/Google Axion ARM CPU), strong demand for its 800G products, and the initial ramp of 1.6T optical DSPs. This is combined with a continued cyclical recovery in its enterprise and carrier segments. Overall, we expect April-quarter results (we estimate $1.875 billion, up 3% quarter-over-quarter) and July-quarter guidance (we expect $2.00 billion+, up 7% quarter-over-quarter) to be in line with JPMorgan and consensus estimates, with solid datacenter growth led by its AI ASIC ramps, growth in 800G/1.6T AI optical shipments, 400ZR shipments, and HDD/SSD controllers. The remainder of its business should also show sequential growth driven by cyclical improvements and new product cycles.
Recall that the team reaffirmed its April-quarter revenue outlook in early May. Since then, we believe accelerated compute demand remains strong, as indicated during earnings season from cloud and hyperscaler capex spending and AI infrastructure beneficiaries (e.g., MTSI, ALAB). On custom ASICs, the team continues its production ramp at Amazon with the Trainium 2 AI XPU ASIC, and as we recently highlighted, we believe Marvell’s Trainium 3 (3nm) program at AWS is progressing well and is on track to ramp in calendar year 2026 in high volumes. We also believe Marvell’s Microsoft AI ASIC MAIA Gen 2 (3nm) program is on track for a CY26 ramp, and Marvell has already won the Gen 3 MAIA (2nm/3nm chiplet – 3DSOIC) program, with production planned for a CY27/28 ramp.
Within the optical business, 800G PAM4 optical DSP orders and shipments remain solid, with an increasing ramp of next-gen 1.6T DSP into the second half of the year. Overall, we estimate the team will drive $4 billion in total AI ASICs and networking revenues this year. In the cyclical business, demand from enterprise networking (Cisco) remains healthy, and demand in carrier infrastructure is stabilizing. In automotive, the divestiture of the auto business, expected to close in CY25 ($225–$250 million revenue in FY26), is a revenue headwind but should be accretive to earnings by $0.05–$0.10, assuming proceeds are used for share repurchases.
More importantly, we see the team’s custom datacenter and AI ASIC pipeline continuing to expand (SmartNIC/DPU ASIC chips, HBM4 base die controller ASICs, eSSD controller ASICs, follow-on AI accelerator ASIC wins). We maintain our Overweight rating, as we see the team’s AI ASIC, optical, cloud, and storage segments continuing to drive solid growth while cyclical 5G and enterprise businesses recover."
Analyst: Harlan Sur
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JPMorgan Reiterates Overweight Rating on $MRVL, Maintains PT at $130
Analyst comments: "Marvell is set to report earnings Thursday, and we expect a continued volume ramp of its two large AI ASIC programs (Amazon Trainium 2 ASIC/Google Axion ARM CPU), strong demand for its 800G products, and the initial ramp of 1.6T optical DSPs. This is combined with a continued cyclical recovery in its enterprise and carrier segments. Overall, we expect April-quarter results (we estimate $1.875 billion, up 3% quarter-over-quarter) and July-quarter guidance (we expect $2.00 billion+, up 7% quarter-over-quarter) to be in line with JPMorgan and consensus estimates, with solid datacenter growth led by its AI ASIC ramps, growth in 800G/1.6T AI optical shipments, 400ZR shipments, and HDD/SSD controllers. The remainder of its business should also show sequential growth driven by cyclical improvements and new product cycles.
Recall that the team reaffirmed its April-quarter revenue outlook in early May. Since then, we believe accelerated compute demand remains strong, as indicated during earnings season from cloud and hyperscaler capex spending and AI infrastructure beneficiaries (e.g., MTSI, ALAB). On custom ASICs, the team continues its production ramp at Amazon with the Trainium 2 AI XPU ASIC, and as we recently highlighted, we believe Marvell’s Trainium 3 (3nm) program at AWS is progressing well and is on track to ramp in calendar year 2026 in high volumes. We also believe Marvell’s Microsoft AI ASIC MAIA Gen 2 (3nm) program is on track for a CY26 ramp, and Marvell has already won the Gen 3 MAIA (2nm/3nm chiplet – 3DSOIC) program, with production planned for a CY27/28 ramp.
Within the optical business, 800G PAM4 optical DSP orders and shipments remain solid, with an increasing ramp of next-gen 1.6T DSP into the second half of the year. Overall, we estimate the team will drive $4 billion in total AI ASICs and networking revenues this year. In the cyclical business, demand from enterprise networking (Cisco) remains healthy, and demand in carrier infrastructure is stabilizing. In automotive, the divestiture of the auto business, expected to close in CY25 ($225–$250 million revenue in FY26), is a revenue headwind but should be accretive to earnings by $0.05–$0.10, assuming proceeds are used for share repurchases.
More importantly, we see the team’s custom datacenter and AI ASIC pipeline continuing to expand (SmartNIC/DPU ASIC chips, HBM4 base die controller ASICs, eSSD controller ASICs, follow-on AI accelerator ASIC wins). We maintain our Overweight rating, as we see the team’s AI ASIC, optical, cloud, and storage segments continuing to drive solid growth while cyclical 5G and enterprise businesses recover."
Analyst: Harlan Sur
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$SONY TO SPIN OFF FINANCE ARM:
Sony will present its growth plan Thursday for Sony Financial Group, which includes banking and insurance, ahead of its Sept 29 direct listing. Sony plans to distribute over 80% of shares to investors, keeping just under 20%. The move separates capital-heavy finance from asset-efficient businesses like entertainment and chips. It's the first tax-free spin-off under Japan’s 2023 rules and the first direct listing in 20+ years. Sony expects flat profits this year after a ¥100B hit from Trump tariffs but is investing ¥3.5T through FY2026 in capex and deals to grow IP and its entertainment empire.
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$SONY TO SPIN OFF FINANCE ARM:
Sony will present its growth plan Thursday for Sony Financial Group, which includes banking and insurance, ahead of its Sept 29 direct listing. Sony plans to distribute over 80% of shares to investors, keeping just under 20%. The move separates capital-heavy finance from asset-efficient businesses like entertainment and chips. It's the first tax-free spin-off under Japan’s 2023 rules and the first direct listing in 20+ years. Sony expects flat profits this year after a ¥100B hit from Trump tariffs but is investing ¥3.5T through FY2026 in capex and deals to grow IP and its entertainment empire.
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$PEP JOINS FORMULA 1 AS OFFICIAL PARTNER:
PepsiCo signs a multi-year deal with F1 through 2030. Sting becomes the Official Energy Drink of F1, while Gatorade will sponsor F1 Sprint events starting at Spa.
https://t.co/1oE1bJxpdl
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$PEP JOINS FORMULA 1 AS OFFICIAL PARTNER:
PepsiCo signs a multi-year deal with F1 through 2030. Sting becomes the Official Energy Drink of F1, while Gatorade will sponsor F1 Sprint events starting at Spa.
https://t.co/1oE1bJxpdl
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Institutional exposure to tech remains light, with $7T still parked in cash funds. Additionally, CTAs and vol control funds are neutral and have plenty of room to add risk https://t.co/pOdaY9YLNx
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Institutional exposure to tech remains light, with $7T still parked in cash funds. Additionally, CTAs and vol control funds are neutral and have plenty of room to add risk https://t.co/pOdaY9YLNx
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UBS REITERATES NEUTRAL RATING ON $RIVN, PT $13
Analyst comments: "In this report, we focus on Rivian-specific trends from our 2025 UBS Evidence Lab Global EV survey results. While an increasing number of U.S. consumers are aware of the Rivian brand, overall awareness remains low (13% vs. 10% last year). Further, only ~5% of BEV owners/buyers indicated they would consider purchasing a Rivian (up from 4.5% last year). For reference, we estimate Rivian's 2024 U.S. BEV share (excluding vans) was ~3%. The survey indicates that consumers still want more EV choices and alternatives, which may be positive for Rivian. In fact, of those who would consider buying a Tesla, ~30% are more likely to consider purchasing a Rivian (up from 26% last year).
However, overall U.S. interest in EVs has declined, and given potential pushout of EPA requirements and repeal of the California waiver, the EV inflection may be further out than expected. The removal of the California waiver may also limit Rivian's ability to generate and sell ZEV credits. Slower EV growth is likely exacerbated by a lack of affordable options—only ~35% of respondents believed EVs are affordable vs. internal combustion engine vehicles. Rivian's R1S SUV starts at $75,900 while the R1T pickup starts at $69,900. The average vehicle price in the U.S. is currently $47,900, while the average BEV (including tax credits) is $57,400.
The potential removal of consumer clean vehicle tax credits (CVC), including the 'leasing loophole,' could further limit EV adoption. In 2024, we estimate that ~59% of Rivian R1s were leased. While not all demand would be destroyed if CVCs are removed, we believe it would still be a headwind. These are key reasons why the R2 model launch is so critical to the equity story. R2 remains on track for 2026 with a starting price of ~$45,000.
Near-term, especially if U.S. policies move away from an EV focus, continued cost reductions on the R1 and increased manufacturing efficiencies are key. We remain Neutral rated on Rivian given a likely tougher near-term EV environment, but we do see potential for a positive longer-term outlook, particularly as we get closer to the R2 launch and gain more clarity on the potential ramp."
Analyst: Joseph Spak
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UBS REITERATES NEUTRAL RATING ON $RIVN, PT $13
Analyst comments: "In this report, we focus on Rivian-specific trends from our 2025 UBS Evidence Lab Global EV survey results. While an increasing number of U.S. consumers are aware of the Rivian brand, overall awareness remains low (13% vs. 10% last year). Further, only ~5% of BEV owners/buyers indicated they would consider purchasing a Rivian (up from 4.5% last year). For reference, we estimate Rivian's 2024 U.S. BEV share (excluding vans) was ~3%. The survey indicates that consumers still want more EV choices and alternatives, which may be positive for Rivian. In fact, of those who would consider buying a Tesla, ~30% are more likely to consider purchasing a Rivian (up from 26% last year).
However, overall U.S. interest in EVs has declined, and given potential pushout of EPA requirements and repeal of the California waiver, the EV inflection may be further out than expected. The removal of the California waiver may also limit Rivian's ability to generate and sell ZEV credits. Slower EV growth is likely exacerbated by a lack of affordable options—only ~35% of respondents believed EVs are affordable vs. internal combustion engine vehicles. Rivian's R1S SUV starts at $75,900 while the R1T pickup starts at $69,900. The average vehicle price in the U.S. is currently $47,900, while the average BEV (including tax credits) is $57,400.
The potential removal of consumer clean vehicle tax credits (CVC), including the 'leasing loophole,' could further limit EV adoption. In 2024, we estimate that ~59% of Rivian R1s were leased. While not all demand would be destroyed if CVCs are removed, we believe it would still be a headwind. These are key reasons why the R2 model launch is so critical to the equity story. R2 remains on track for 2026 with a starting price of ~$45,000.
Near-term, especially if U.S. policies move away from an EV focus, continued cost reductions on the R1 and increased manufacturing efficiencies are key. We remain Neutral rated on Rivian given a likely tougher near-term EV environment, but we do see potential for a positive longer-term outlook, particularly as we get closer to the R2 launch and gain more clarity on the potential ramp."
Analyst: Joseph Spak
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UBS Reiterates Sell Rating on $TSLA, Maintains PT at $190
Analyst comments: "Survey shows declining interest in EVs and the Tesla brand around the world. In this report, we focus on Tesla-specific trends from the 9th wave of the UBS Evidence Lab Global EV Adoption Outlook Consumer Survey. Overall, the theme of this survey is declining Tesla interest in the three major regions of the world: the U.S., China, and Europe, though the reasons vary by region. In the U.S., we see Tesla saturation (~48% U.S. BEV share), a limited vehicle lineup, and affordability as concerns. In China, there is intense competition, and Tesla is no longer seen as the technology leader. In Europe, we believe there may have been brand damage from Elon Musk's political involvement.
Overall, we remain cautious on Tesla stock. While we understand the enthusiasm over robo-taxis and humanoid robots, the automotive business faces mounting challenges and a source of earnings and cash flow may be at risk with the potential removal of the California waiver. Musk has indicated the value of Tesla lies in autonomous vehicles and humanoid robots. This may be true, but given the deteriorating outlook for the auto business, the implied valuation assigned to these ventures already appears quite robust."
Analyst: Joseph Spak
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UBS Reiterates Sell Rating on $TSLA, Maintains PT at $190
Analyst comments: "Survey shows declining interest in EVs and the Tesla brand around the world. In this report, we focus on Tesla-specific trends from the 9th wave of the UBS Evidence Lab Global EV Adoption Outlook Consumer Survey. Overall, the theme of this survey is declining Tesla interest in the three major regions of the world: the U.S., China, and Europe, though the reasons vary by region. In the U.S., we see Tesla saturation (~48% U.S. BEV share), a limited vehicle lineup, and affordability as concerns. In China, there is intense competition, and Tesla is no longer seen as the technology leader. In Europe, we believe there may have been brand damage from Elon Musk's political involvement.
Overall, we remain cautious on Tesla stock. While we understand the enthusiasm over robo-taxis and humanoid robots, the automotive business faces mounting challenges and a source of earnings and cash flow may be at risk with the potential removal of the California waiver. Musk has indicated the value of Tesla lies in autonomous vehicles and humanoid robots. This may be true, but given the deteriorating outlook for the auto business, the implied valuation assigned to these ventures already appears quite robust."
Analyst: Joseph Spak
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JPMORGAN: 'REITERATING THE TACTICAL BULLISH VIEW'
"The $SPX fell 2.6% last week, trimming the MTD gain to 4.2% and pushing the YTD return back into negative territory, -1.3%. On the week, SPX outperformed, SPW and RTY while trailing NDX; the US underperformed most major International DM markets and well as the EM index as the dollar (DXY) fell another 2%. Headwinds in the US were created by bond volatility surrounding the US fiscal situation in an otherwise quiet macro data week. While the 10Y yield only rose 3.4bps on the week, it traded in a 20bp range as the MOVE index increased 4.4%. With the SPX less than 6% from ATHs, is the next 300 points up or down? We think higher; we had flagged pullback risk and believe that we experienced that last week. Key part of the tactical bullish hypothesis remains (i) stable macro data; (ii) positive earnings; and (iii) a further de-escalation of the trade war. NVDA earnings loom large as a catalyst with US/EU escalated and de-escalated over the course of the weekend."
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JPMORGAN: 'REITERATING THE TACTICAL BULLISH VIEW'
"The $SPX fell 2.6% last week, trimming the MTD gain to 4.2% and pushing the YTD return back into negative territory, -1.3%. On the week, SPX outperformed, SPW and RTY while trailing NDX; the US underperformed most major International DM markets and well as the EM index as the dollar (DXY) fell another 2%. Headwinds in the US were created by bond volatility surrounding the US fiscal situation in an otherwise quiet macro data week. While the 10Y yield only rose 3.4bps on the week, it traded in a 20bp range as the MOVE index increased 4.4%. With the SPX less than 6% from ATHs, is the next 300 points up or down? We think higher; we had flagged pullback risk and believe that we experienced that last week. Key part of the tactical bullish hypothesis remains (i) stable macro data; (ii) positive earnings; and (iii) a further de-escalation of the trade war. NVDA earnings loom large as a catalyst with US/EU escalated and de-escalated over the course of the weekend."
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Wall St Engine
WeRide $WRD is scaling into Saudi Arabia, launching Robotaxi trials on Uber and deploying Robobuses and Robosweepers across Riyadh and AlUla. Backed by Vision 2030, the move supports Saudi’s smart city push. Full rollout expected by late 2025, following similar launches in Abu Dhabi and Dubai.
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WeRide $WRD is scaling into Saudi Arabia, launching Robotaxi trials on Uber and deploying Robobuses and Robosweepers across Riyadh and AlUla. Backed by Vision 2030, the move supports Saudi’s smart city push. Full rollout expected by late 2025, following similar launches in Abu Dhabi and Dubai.
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Wall St Engine
Jefferies Upgrades $LUV to Hold from Underperform, Raises PT to $33 from $24
Analyst comments: "We met with CEO & Vice Chair Bob Jordan and CFO Tom Doxey on our Dallas Bus Tour. Key takeaways: (1) $1.8 billion of initiatives to drive EBIT—$1 billion from revenue management (yield, service cuts, distribution), $370 million in cost reductions, and $400 million from bags, basic fares, and loyalty programs; (2) 26% ELR seats maximizes revenue per square foot and maintains scarcity; (3) two-thirds of managers beat on Q1 costs; (4) unlocking trapped earnings in the order book with maintenance certainty via long-term service agreements; and (5) continued evaluation of product and network. We upgrade to Hold on the trajectory of these initiatives."
Analyst: Julian Dumoulin-Smith
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Jefferies Upgrades $LUV to Hold from Underperform, Raises PT to $33 from $24
Analyst comments: "We met with CEO & Vice Chair Bob Jordan and CFO Tom Doxey on our Dallas Bus Tour. Key takeaways: (1) $1.8 billion of initiatives to drive EBIT—$1 billion from revenue management (yield, service cuts, distribution), $370 million in cost reductions, and $400 million from bags, basic fares, and loyalty programs; (2) 26% ELR seats maximizes revenue per square foot and maintains scarcity; (3) two-thirds of managers beat on Q1 costs; (4) unlocking trapped earnings in the order book with maintenance certainty via long-term service agreements; and (5) continued evaluation of product and network. We upgrade to Hold on the trajectory of these initiatives."
Analyst: Julian Dumoulin-Smith
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