Tag Archives: technology

Tesla Price Target Cut On Model 3; Monsanto Hiked; Best Buy Not A Buy

RBC Capital lowered its price target on Tesla ( TSLA ), Jefferies upped its price target on Monsanto ( MON ) on views that Germany’s Bayer will sweeten its $62 billion takeover offer, and Best Buy ( BBY ) was downgraded by Citigroup and Deutsche Bank. Tesla RBC Capital trimmed its price target on Tesla to 242 from 252. The electric automaker last week announced a $2 billion stock offering that will be used to fund a production ramp-up for the Model 3. RBC Capital forecast a fresh $1 billion equity raise in 2017 and lowered its estimate for Model 3 shipments. “We were always below Tesla’s vehicle delivery targets of 500,000 by 2018 and 1 million by 2020, but after speaking with industry contacts and reconsidering our model, we are tempering our delivery forecast to account for a slower Model 3 ramp,” said the RBC Capital report. Tesla shares rose 0.9% to 219.90 in early afternoon action on the stock market today . Monsanto Jefferies upped its price target on Monsanto to 132. “We believe a higher-than-$130-per-share transaction is highly likely, with details emerging by August,” Jefferies said in the report. Monsanto on Tuesday rejected a $122-per-share cash offer from Bayer ( BAYRY ), but signaled it might be open to a higher price. Late Tuesday, Bayer issued a statement sounding hopeful that a deal could be reached. “To date, activist pressure has been limited. If a deal falters, we would expect (a) step-up in pressure for Monsanto to do more with its balance sheet,” said Jefferies. Monsanto stock rallied 2.5% intraday. Bayer fell fractionally. Best Buy Best Buy, which on Tuesday forecast current-quarter profit below views and said its CFO was leaving, was downgraded to neutral by Citigroup and Deutsche Bank. Citigroup cited a lack of hot new consumer electronics products. Virtual reality will not take off until 2017, said Citigroup. “Categories with no secular threats — home improvement and auto parts — are performing better and are more predictable,” Citigroup said. Best Buy shares rebounded 3.6% after tumbling 7.4% on Tuesday. Fleetmatics Pacific Crest Securities upgraded Fleetmatics ( FLTX ) to overweight with a price target of 54. Shares in the mobile fleet management software provider are down 20% in 2016 after surging 43% last year. “With plenty of solid runway for growth, rising (customer turnover) now better understood, a positively received management transition and a conservative earnings outlook for the year, we turn more positive on FLTX,” said the Pacific Crest report. Fleetmatics stock rose 2.4% intraday. In other analyst moves, Needham upgraded Workday ( WDAY ) to buy and raised its price target to 85 from 80. Workday rose 1% to 77.69 intraday.

Apple, Tesla Self-Driving Cars May Kill Off Consumer Auto Insurance

If Apple ( AAPL ), Tesla Motors ( TSLA ), Alphabet ‘s ( GOOGL ) Google and others succeed in making self-driving cars prevalent by 2040 and ride-hailing startups Uber and Lyft prosper, auto insurance may no longer be needed by many U.S. consumers, says S&P Global Market Intelligence. S&P released five reports this week analyzing the push into self-driving electric cars by Google, Tesla, China’s Baidu ( BIDU ) and others. While the business models of traditional automakers such as General Motors ( GM ) and Ford ( F ) will undergo big changes, the impact of self-driving cars on the $137 billion auto insurance industry and companies like Allstate ( ALL ) could be monumental, says S&P. “The advent of a totally driverless car threatens the core auto insurance liability business model,” said one S&P report. “A shift to driverless cars would theoretically shift the legal liability away from the driver, since the incidence of crashes would likely be reduced, and the liability in a crash would shift from human error to product liability, potentially reducing or removing the need for auto liability insurance.” Here are five other takeaways from S&P’s deep dive into self-driving cars and ride-sharing alliances. Noting Apple’s $1 billion investment in China’s ride-hailing leader Didi Chuxing, which has an alliance with Lyft, S&P said ride-hailing apps may eventually summon autonomous cars. Uber, the leader in ride-sharing, is losing money, says S&P. Both Uber and Lyft face “competitive markets and issues related to how to classify their drivers and operate within federal laws and local rules.” While Apple has not officially announced plans, it seems to be gearing up in automotive technology. “Multiple hires made since the beginning of last year, including former Tesla employees, indicate an interest,” S&P said. “We also note substantial increases in R&D and capex over the past few years.” General Motors, which in early 2016 invested $500 million in Lyft, intends to integrate autonomous driving technology from Cruise Automation once it completes its planned $1 billion purchase of that company. Lyft drivers are a potential customer base for GM’s upcoming Bolt electric vehicle, says S&P. Radio service providers such as iHeart Communications, formerly Clear Channel, will likely face intensifying rivalries versus Sirius XM Radio ( SIRI ) and Pandora Media ( P ), as well as Apple CarPlay and Google’s Android Auto. RELATED: Apple Gets Lift From China Ride-Hailing Service Investment Toyota Joins Apple, GM In Finding Ride-Hailing Partners Meet Uber’s Self-Driving Car, As Autonomous Race Heats Up .

Alibaba Faces SEC Accounting Probe Of Singles Day, More

Alibaba ( BABA ) disclosed Wednesday that the Securities and Exchange Commission has been probing whether its accounting into its Singles Day e-commerce event and various consolidation practices violate U.S. securities laws. Shares of the e-commerce giant fell 3.9% to 77.96 in morning trade on the stock market today , undercutting the 50-day moving average where Alibaba has found support in recent days. IBD’s Take: How healthy is Alibaba’s stock, and how does it compare vs. key rivals such as Amazon? Find out at IBD Stock Checkup Alibaba reported the SEC probe in an SEC filing. Here is the key passage. “Earlier this year, the U.S. Securities and Exchange Commission, or SEC, informed us that it was initiating an investigation into whether there have been any violations of the federal securities laws. The SEC has requested that we voluntarily provide it with documents and information relating to, among other things: our consolidation policies and practices (including our accounting for Cainiao Network as an equity method investee), our policies and practices applicable to related party transactions in general, and our reporting of operating data from Singles Day. We are voluntarily disclosing this SEC request for information and cooperating with the SEC and, through our legal counsel, have been providing the SEC with requested documents and information. The SEC advised us that the initiation of a request for information should not be construed as an indication by the SEC or its staff that any violation of the federal securities laws has occurred. This matter is ongoing, and, as with any regulatory proceeding, we cannot predict when it will be concluded.” Singles Day — Nov. 11 — has become the world’s largest e-commerce event, far above Cyber Monday or the new Amazon ( AMZN ) Prime Day last year. Alibaba had $13.7 billion in sales in last year’s event, with JD.com ( JD ) and other Chinese retailers also taking part. Separately, Alibaba, Baidu ( BIDU ), Tencent ( TCEHY ) and other Chinese Internet companies should should see continued strong growth in online-to-offline spending, Moody’s says. Moody’s sees Baidu, Alibaba and Tencent, sometimes referred to as “BAT,” should deliver 15%-30% revenue growth over the next 12-18 months, partly due to O2O efforts that have increased customer engagement and monetization. Alibaba, Baidu and Tencent have spent billions of dollars on O2O-related initiatives in recent years. “For all three companies, we expect that their investments will remain high, as they establish or acquire end-to-end logistics capabilities,” Moody’s said.