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After weaker-than-expected quarterly results from luxury electric vehicle maker Lucid , analysts are now turning their attention to rival Rivian . Analysts polled by FactSet are forecasting an adjusted loss of $1.43 per share on $1.1 billion in revenue. Still, analysts remain bullish on Rivian ahead of its earnings release. Meanwhile, Morgan Stanley's Adam Jonas reiterated an overweight rating on Rivian in a July 7 note, accompanied by a $24 per share price target. Elsewhere, DA Davidson's Michael Shlisky is neutral on Rivian after an upgrade from underperform July 5, with an $18 per share price target that equates to about 26% downside.
Persons: Rivian, Needham's Chris Pierce, Pierce, Morgan Stanley's Adam Jonas, Jonas, Vijay Rakesh, Rakesh, Michael Shlisky, Mercedes EQB, Shlisky, — CNBC's Michael Bloom Organizations: FactSet, Wall, EV, Mizuho Securities
There are new signs of a resilient housing market and a home renovation rebirth with potentially bullish implications for three of our Club names. Shares of Stanley Black & Decker (SWK) and Caterpillar (CAT), whose tools and machinery are used in homebuilding, have been on the upswing in recent weeks. "There are a lot of projects that go on top of residential construction that require mining materials, which Caterpillar is a big player in." Discounter retailer TJX should also reap the benefits of a resilient housing market as new and existing homeowners seek to furnish their homes with high-quality branded goods at a discount. (Jim Cramer's Charitable Trust is long SWK, CAT, TJX.
Persons: Stanley Black, Decker, Brett Linzey, Stanley, Michael Shlisky, Davidson, It's, Shlisky, Stuart Millar, Miller, Lennar, Jim Cramer's, Jim Cramer, Jim, David Paul Morris Organizations: Caterpillar, TJX, Commerce Department, Conference Board, Mizuho Securities, JPMorgan, Caterpillar's, Industries, D.A, Consumers, U.S, CNBC, Bloomberg, Getty Locations: homebuilding, North America, Lennar, TJX, Maxx, Emeryville , California
The company looked set to add nearly $800 million to its market valuation, based on premarket stock prices, after it reiterated its annual production forecast and beat quarterly revenue estimates. Davidson, who was among the 10 analysts that lowered their price target on a stock that has declined 25% this year. Reuters GraphicsNonetheless, the company is expected to benefit from a pullback in commodity prices and easing supply chain issues. "As sagging EV commodity prices, technology improvements, and supply chain loosening positively impact operations, we see a logical path to positive gross margins next year," Canaccord Genuity analysts said. Reporting by Akash Sriram in Bengaluru; Editing by Saumyadeb ChakrabartyOur Standards: The Thomson Reuters Trust Principles.
Custom Truck One Source , a provider of specialty trucks and custom equipment, has secular tailwinds that could help the stock even if the broader economy slides, DA Davidson said. Analyst Michael Shlisky initiated coverage of the stock at a buy. Shlisky's $12 price target implies the stock could rally 69% from where it closed Wednesday. Meanwhile, he said telecommunications, which is Custom Truck's second most-important sector, also has a long tailwind coming for similar reasons. While Shlisky said the stock is more levered than peers, he said it's not outrageously high to begin with and expects a downward trajectory.
John Deere's Chief Technology Officer Jahmy Hindman told CNBC the world's largest agriculture equipment player is in the process of finalizing a satellite partner. As to when satellites will become in use, Hindman said Deere is "right at the cusp" of solving the connectivity problem for farmers. With more money in the bank, farmers are expected to continue spending on agriculture equipment, where John Deere remains a leader. Gabelli Funds has been a longtime investor in the agriculture equipment maker and remains bullish. The big wild card: the ongoing war in Ukraine which has sent agriculture prices skyrocketing.
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