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Tesla's corporate governance problems could undermine the automaker's competitive advantage by hindering its ability to invest long term and pursue breakout technologies, according to Daiwa Capital Markets. Analyst Jairam Nathan downgraded Tesla to neutral from outperform and slashed his price target for the automaker by about 20% to $195, which still implies nearly 8% upside from Monday's close of $181.06. The Wall Street Journal reported Saturday that Musk had used illegal drugs with some board members. "For instance, any Board reshuffle could slow decision-making and shorten investment time horizons," Nathan wrote. Daiwa is maintaining its earnings forecast of $3.10 per share for 2024 and $4.25 per share for 2025 based on 13% to 16% delivery volume growth.
Persons: Jairam Nathan, Tesla, Nathan, Elon Musk's Organizations: Daiwa, Markets, Street Locations: Delaware
He also said that Flywire trading at a discount of about 25% is "unwarranted given the company's strong competitive position and organic revenue growth trajectory." "These risks along with a tough demand setting is likely to remove any support for the stock price." — Alex Harring 5:29 a.m.: BTIG moves to sidelines on McDonald's after earnings BTIG has a different taste in its mouth about McDonald's following earnings. The bank upgraded the delivery giant to buy from neutral and hiked its price target to $175 from $160. "We expect management to deliver a strong cost reduction program to support margin expansion and attractive EPS growth despite facing a backdrop of muted revenue growth," analyst Thomas Wadewitz wrote.
Persons: Flywire, Nate Svensson, That's, Svensson, — Alex Harring, Gross, Manav Gupta, Gupta, Jairam Nathan, Nathan, Tesla, Li, Edison Yu, Yu, Piper Sandler, Arvind Ramnani, Chegg, Ramnani, Alex Harring, Tyler Radke, Palantir, Radke, BTIG, Peter Saleh, Saleh, McDonald's, Thomas Wadewitz, Wadewitz, Fred Imbert Organizations: CNBC, Parcel Service, Deutsche Bank, UBS, Leadership, Li Auto, KraneShares CSI China Internet, Citi, Wall, Revenue, UPS Locations: Tuesday's premarket, Monday's, U.S, Israel
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailElon Musk needs to 'show us the money' when it comes to the cybertruck: AnalystFrancisco Bido of Integrated Alpha and Jairam Nathan of Daiwa Capital Markets America discuss Tesla's stock sell-off after the company announced Q3 earnings.
Persons: Francisco, Jairam Nathan Organizations: Elon, Integrated Alpha, Daiwa, Markets
Investors dump Lyft on signs Uber is snatching market share
  + stars: | 2022-11-08 | by ( ) www.reuters.com   time to read: +2 min
[1/2] A sign marks a rendezvous location for Lyft and Uber users at San Diego State University in San Diego, California, U.S., May 13, 2020. REUTERS/Mike BlakeNov 8 (Reuters) - Lyft Inc (LYFT.O) shares sank 20% on Tuesday on signs that competition from bigger rival Uber (UBER.N) was stalling user growth and eating into the market share of the ride-hailing firm. When rideshare ground to a halt during lockdowns, long-time market leader Uber's delivery business had given it an edge over pureplay Lyft. read more"While we think Lyft will remain the second-largest ridehailing platform in the U.S., we are now assuming Uber will slightly increase its market share over Lyft during the next few years," Morningstar analyst Ali Mogharabi said. Lyft lost market share to Uber in the third quarter, disappointing investorsHowever, a cost-cutting drive should help ease some of the pressure and help boost Lyft's profitability, according to Daiwa Capital Markets analyst Jairam Nathan.
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