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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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MSCI ALL-COUNTRY WORLD INDEX RISES TO TOP FEBRUARY RECORD HIGH https://t.co/SXKEhJMMR3
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Wall St Engine
Morgan Stanley says Tesla’s $TSLA drone potential could turn it into a defense stock. Analyst Adam Jonas sees drones and urban air mobility as a $1T market by 2040, $9T by 2050. If Tesla grabs a slice, it could add $1,000 per share. With few U.S. rivals, Tesla may be a defense player in disguise.
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Morgan Stanley says Tesla’s $TSLA drone potential could turn it into a defense stock. Analyst Adam Jonas sees drones and urban air mobility as a $1T market by 2040, $9T by 2050. If Tesla grabs a slice, it could add $1,000 per share. With few U.S. rivals, Tesla may be a defense player in disguise.
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Wall St Engine
Citi Downgrades $CEG to Neutral from Buy, Raises PT to $318 from $232
Analyst comments: "On April 9, 2025, with the stock at $184.99, we upgraded Constellation Energy as there was little potential datacenter deal value priced into the stock. In this note, following the stock rally and the Meta deal announcement, we take a closer look at the valuation.
Our new price target of $318 now assumes a sum-of-the-parts (SOTP) approach where all existing nuclear plants with licenses expiring before 2045 (70% of the ~22GW fleet) could sign datacenter deals at approximately $80/MWh. Additionally, we assume existing power plants are worth a 1x higher EV/EBITDA multiple to reflect increased scarcity value.
Our consolidated EV/EBITDA and P/E multiple-based approaches also incorporate higher multiples to reflect the enhanced datacenter opportunity. The average of these three methods supports our revised price target of $318 per share."
Analyst: Ryan Levine
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Citi Downgrades $CEG to Neutral from Buy, Raises PT to $318 from $232
Analyst comments: "On April 9, 2025, with the stock at $184.99, we upgraded Constellation Energy as there was little potential datacenter deal value priced into the stock. In this note, following the stock rally and the Meta deal announcement, we take a closer look at the valuation.
Our new price target of $318 now assumes a sum-of-the-parts (SOTP) approach where all existing nuclear plants with licenses expiring before 2045 (70% of the ~22GW fleet) could sign datacenter deals at approximately $80/MWh. Additionally, we assume existing power plants are worth a 1x higher EV/EBITDA multiple to reflect increased scarcity value.
Our consolidated EV/EBITDA and P/E multiple-based approaches also incorporate higher multiples to reflect the enhanced datacenter opportunity. The average of these three methods supports our revised price target of $318 per share."
Analyst: Ryan Levine
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Wall St Engine
UBS Upgrades $SNOW to Buy from Neutral, Raises PT to $265 from $210
Analyst comments: "Our more positive view is rooted in: 1. Our recent Snowflake customer and partner checks are signaling a clear uptick in spending in their data stacks, in many cases because of the greater value associated with corporate data to drive AI application performance. As Snowflake argues, and we agree, enterprises increasingly need 'AI-ready' data such that Snowflake, Palantir and Databricks have emerged as AI beneficiaries. This is also evident in the efforts of SaaS firms Salesforce, ServiceNow, SAP and others to move into the data software space. 2. Competition with Databricks is proving to be more manageable (room for two, overall market is growing quickly enough) than we have believed. 3. Snowflake has executed better than we imagined on broadening out its data management portfolio, well beyond its core data warehouse product, positioning itself to grab more share of data wallets."
Analyst: Karl Keirstead
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UBS Upgrades $SNOW to Buy from Neutral, Raises PT to $265 from $210
Analyst comments: "Our more positive view is rooted in: 1. Our recent Snowflake customer and partner checks are signaling a clear uptick in spending in their data stacks, in many cases because of the greater value associated with corporate data to drive AI application performance. As Snowflake argues, and we agree, enterprises increasingly need 'AI-ready' data such that Snowflake, Palantir and Databricks have emerged as AI beneficiaries. This is also evident in the efforts of SaaS firms Salesforce, ServiceNow, SAP and others to move into the data software space. 2. Competition with Databricks is proving to be more manageable (room for two, overall market is growing quickly enough) than we have believed. 3. Snowflake has executed better than we imagined on broadening out its data management portfolio, well beyond its core data warehouse product, positioning itself to grab more share of data wallets."
Analyst: Karl Keirstead
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Wall St Engine
RBC Capital Upgrades $NG to Outperform from Sector Perform, Raises PT to $7 from $5
Analyst comments: "The new partnership revives the Donlin project in our view, after progress had stalled under the NovaGold/Barrick joint venture. We see valuation upside in a bullish gold price environment over the next several years, starting with the resumption of work on an updated feasibility study. Donlin in Alaska remains a high-quality, long-life, large-scale deposit, but challenges remain ahead of any potential construction decision (2028+), and we think the new ownership structure should unlock valuation upside. Upgrade to Outperform, target up to $7 from $5."
Analyst: Michael Siperco
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RBC Capital Upgrades $NG to Outperform from Sector Perform, Raises PT to $7 from $5
Analyst comments: "The new partnership revives the Donlin project in our view, after progress had stalled under the NovaGold/Barrick joint venture. We see valuation upside in a bullish gold price environment over the next several years, starting with the resumption of work on an updated feasibility study. Donlin in Alaska remains a high-quality, long-life, large-scale deposit, but challenges remain ahead of any potential construction decision (2028+), and we think the new ownership structure should unlock valuation upside. Upgrade to Outperform, target up to $7 from $5."
Analyst: Michael Siperco
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Wall St Engine
Morgan Stanley says Tesla’s $TSLA drone potential could turn it into a defense stock. Analyst Adam Jonas sees drones and urban air mobility as a $1T market by 2040, $9T by 2050. If Tesla grabs a slice, it could add $1,000 per share.
h/t to @trader_53 https://t.co/l7IfFofgCE
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Morgan Stanley says Tesla’s $TSLA drone potential could turn it into a defense stock. Analyst Adam Jonas sees drones and urban air mobility as a $1T market by 2040, $9T by 2050. If Tesla grabs a slice, it could add $1,000 per share.
h/t to @trader_53 https://t.co/l7IfFofgCE
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Wall St Engine
Stifel Reiterates Buy on $DKNG, PT $53
Analyst comments: "We recently hosted DraftKings (CFO; IR) for a series of 1-on-1 investor meetings at our annual Stifel Cross Sector Insight Conference. Our key takeaways include: 1) the highly surprising second Illinois tax hike will likely lead to more aggressive mitigation and pass-through strategies across the industry, 2) concerns around handle deceleration focus on the wrong KPI, with total addressable market momentum intact, and 3) management is confident in their odds and modeling despite outcomes-related earnings misses, with growth in props and in-play helping organically hedge. We continue to recommend buying on three-month trailing weakness, as fears around market-wide handle deceleration discount the inverse impact from net gaming revenue-accretive structural hold expansion and lower promotions. Our confidence in TAM momentum is supported by user acquisition runway. Tactically, the legislative catalyst path skews negative through June 30, though DraftKings seems likely a share winner in MLB and other non-NFL/NBA sports, while iCasino share is re-accelerating quarter-to-date. Reiterate Buy and $53 target price."
Analyst: Jeff Stantial
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Stifel Reiterates Buy on $DKNG, PT $53
Analyst comments: "We recently hosted DraftKings (CFO; IR) for a series of 1-on-1 investor meetings at our annual Stifel Cross Sector Insight Conference. Our key takeaways include: 1) the highly surprising second Illinois tax hike will likely lead to more aggressive mitigation and pass-through strategies across the industry, 2) concerns around handle deceleration focus on the wrong KPI, with total addressable market momentum intact, and 3) management is confident in their odds and modeling despite outcomes-related earnings misses, with growth in props and in-play helping organically hedge. We continue to recommend buying on three-month trailing weakness, as fears around market-wide handle deceleration discount the inverse impact from net gaming revenue-accretive structural hold expansion and lower promotions. Our confidence in TAM momentum is supported by user acquisition runway. Tactically, the legislative catalyst path skews negative through June 30, though DraftKings seems likely a share winner in MLB and other non-NFL/NBA sports, while iCasino share is re-accelerating quarter-to-date. Reiterate Buy and $53 target price."
Analyst: Jeff Stantial
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Wall St Engine
Needham Downgrades $AAPL to Hold from Buy
Analyst comments: "We downgrade Apple to Hold (from Buy), based on: Fundamentals—we lower estimates due to threats to Apple’s near-term revenue and EPS growth. Competition—every Big Tech competitor wants to erode Apple’s 15%–30% platform tax. Generative AI innovations also open the door for new hardware form factors that could threaten iOS devices. Valuation—as of June 2, 2025, Apple trades at a forward 2026 P/E of over 26x, which looks expensive on several metrics.
What would make us more positive: we believe that, for this stock to work, it must have the catalyst of an iPhone replacement cycle, which we do not foresee in the next 12 months. Until then, we believe that $170–$180 per share is a better entry level. Separately, if Apple decided to aggressively pursue an advertising revenue stream, we believe this could materially accelerate revenue and EPS growth."
Analyst: Laura Martin
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Needham Downgrades $AAPL to Hold from Buy
Analyst comments: "We downgrade Apple to Hold (from Buy), based on: Fundamentals—we lower estimates due to threats to Apple’s near-term revenue and EPS growth. Competition—every Big Tech competitor wants to erode Apple’s 15%–30% platform tax. Generative AI innovations also open the door for new hardware form factors that could threaten iOS devices. Valuation—as of June 2, 2025, Apple trades at a forward 2026 P/E of over 26x, which looks expensive on several metrics.
What would make us more positive: we believe that, for this stock to work, it must have the catalyst of an iPhone replacement cycle, which we do not foresee in the next 12 months. Until then, we believe that $170–$180 per share is a better entry level. Separately, if Apple decided to aggressively pursue an advertising revenue stream, we believe this could materially accelerate revenue and EPS growth."
Analyst: Laura Martin
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Hidden Value Gems
Congrats to those who stayed through with $MRL.L
I sold earlier unfortunately. https://t.co/Cwt6VVZRQq
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Congrats to those who stayed through with $MRL.L
I sold earlier unfortunately. https://t.co/Cwt6VVZRQq
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Wall St Engine
$DLTR | Dollar Tree Q1 Earnings Highlights
🔹 Adj. EPS: $1.26 (Est. $1.21) 🟢; +2.4% YoY
🔹 Revenue: $4.6B (Est. $4.72B) 🔴; +11.3% YoY
FY Guidance
🔹 Revenue: $18.5B–$19.1B (Est. $18.95B) 🟡
🔹 Adj. EPS: $5.15–$5.65 (Est. $5.21) 🟢
FY Guidance:
🔸 Same-store sales expected to grow 3%–5%
🔸 Assumes existing tariff levels remain unchanged
🔸 FY EPS will reflect full-year SG&A costs of Family Dollar support, but reimbursement will only be for H2 → ~$0.30–$0.35 drag on FY EPS
🔸 Second quarter EPS expected to be down 45–50% YoY due to timing of inputs, before re-acceleration in H2
Q1 Same-Store Sales (Dollar Tree Segment)
🔹 Same-Store Net Sales Growth: +5.4%
🔹 Traffic: +2.5%
🔹 Average Ticket: +2.8%
Other Key Metrics:
🔹 Adj Operating Income: $388M; +1.4% YoY
🔹 Gross Margin: 35.6%; +20bps YoY
🔹 Adj Operating Margin: 8.4%; -80bps YoY
🔹 Effective Tax Rate: 25.9% (vs. 24.6%)
🔹 Adjusted Effective Tax Rate: 26.1% (vs. 24.6%)
Strategic/Operational Metrics
🔹 New Stores Opened: 148
🔹 Stores Converted to Multi-Price Format: ~500
🔹 Operating Cash Flow (Continuing Ops): $379M
🔹 Free Cash Flow (Continuing Ops): $130M
🔹 Share Repurchases: $436.8M (5.9M shares); Additional $67.5M post quarter-end
🔹 Remaining Repurchase Authorization: $519.7M
🔹 Cash & Equivalents: $1.0B
🔹 No borrowings under revolvers or commercial paper at quarter-end
Family Dollar Sale (Discontinued Ops)
🔹 Agreed Sale Price: $1.007B
🔹 Expected Net Proceeds: ~$800M
🔹 Estimated Tax Benefit: ~$350M
🔹 Antitrust Approval: Received
🔹 Expected Close: Q2 FY2025
Management Commentary
🔸 CEO Mike Creedon:
"Our strong first quarter performance underscores the progress we’ve made against our strategic priorities... we see a meaningful opportunity to further elevate the value, convenience, and discovery that our customers depend on Dollar Tree to provide."
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$DLTR | Dollar Tree Q1 Earnings Highlights
🔹 Adj. EPS: $1.26 (Est. $1.21) 🟢; +2.4% YoY
🔹 Revenue: $4.6B (Est. $4.72B) 🔴; +11.3% YoY
FY Guidance
🔹 Revenue: $18.5B–$19.1B (Est. $18.95B) 🟡
🔹 Adj. EPS: $5.15–$5.65 (Est. $5.21) 🟢
FY Guidance:
🔸 Same-store sales expected to grow 3%–5%
🔸 Assumes existing tariff levels remain unchanged
🔸 FY EPS will reflect full-year SG&A costs of Family Dollar support, but reimbursement will only be for H2 → ~$0.30–$0.35 drag on FY EPS
🔸 Second quarter EPS expected to be down 45–50% YoY due to timing of inputs, before re-acceleration in H2
Q1 Same-Store Sales (Dollar Tree Segment)
🔹 Same-Store Net Sales Growth: +5.4%
🔹 Traffic: +2.5%
🔹 Average Ticket: +2.8%
Other Key Metrics:
🔹 Adj Operating Income: $388M; +1.4% YoY
🔹 Gross Margin: 35.6%; +20bps YoY
🔹 Adj Operating Margin: 8.4%; -80bps YoY
🔹 Effective Tax Rate: 25.9% (vs. 24.6%)
🔹 Adjusted Effective Tax Rate: 26.1% (vs. 24.6%)
Strategic/Operational Metrics
🔹 New Stores Opened: 148
🔹 Stores Converted to Multi-Price Format: ~500
🔹 Operating Cash Flow (Continuing Ops): $379M
🔹 Free Cash Flow (Continuing Ops): $130M
🔹 Share Repurchases: $436.8M (5.9M shares); Additional $67.5M post quarter-end
🔹 Remaining Repurchase Authorization: $519.7M
🔹 Cash & Equivalents: $1.0B
🔹 No borrowings under revolvers or commercial paper at quarter-end
Family Dollar Sale (Discontinued Ops)
🔹 Agreed Sale Price: $1.007B
🔹 Expected Net Proceeds: ~$800M
🔹 Estimated Tax Benefit: ~$350M
🔹 Antitrust Approval: Received
🔹 Expected Close: Q2 FY2025
Management Commentary
🔸 CEO Mike Creedon:
"Our strong first quarter performance underscores the progress we’ve made against our strategic priorities... we see a meaningful opportunity to further elevate the value, convenience, and discovery that our customers depend on Dollar Tree to provide."
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