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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHertz shares downgraded because of EV costs and these other factors, says Jefferies' Stephanie MooreStephanie Moore, Jefferies equity analyst, joins CNBC's "The Exchange" to discuss Hertz shares and headwinds facing the electric car industry.
Persons: Jefferies, Stephanie Moore Stephanie Moore Organizations: Hertz
Jefferies says it's "all revved up" on car rental company Hertz . The firm initiated coverage on Hertz with a buy rating and a $24 price target, implying shares jumping 30% from Monday's close. We see structural benefits from a maintenance and pricing perspective related to [a] higher mix of EVs," Moore said. In this blue sky scenario, we see the potential for another $1bn+ in EBITDA opportunity at 20-30+% margins," the analyst added. Hertz shares were up 1.4% Wednesday before the bell.
Persons: Jefferies, it's, Stephanie Moore, Moore, Hertz, — CNBC's Michael Bloom Organizations: Hertz, EV Locations: Monday's
Ryan Collerd | Bloomberg | Getty ImagesArtificial intelligence is likely to shake up the transportation industry — transforming how supply chains are managed and reducing the number of jobs carried out by people, according to analysts and industry insiders. Sidewalk robots, self-driving trucks and customer service bots are on their way, along with generative AI that can predict disruptions or explain why sales forecasts may have been missed, according to industry executives. "AI may be able to totally (or nearly) remove all human touchpoints in the supply chain including 'back office' tasks," Morgan Stanley 's analysts led by Ravi Shanker stated in a research note last month. AI is the latest one of these potentially transformative technologies to emerge – and perhaps the most powerful to-date," the analysts added. This is a theme picked up by analysts at investment firm Jefferies, who made multiple predictions about the effect that generative AI will have on transportation and logistics.
Persons: Morgan Stanley, Ryan Collerd, Ravi Shanker, Morgan, Jefferies, Stephanie Moore, Navneet Kapoor, Kapoor, Maersk, Igor Rikalo Organizations: Hershey Co, Bloomberg, Getty, EV, Trucking, Logistics, CNBC, Maersk, o9 Solutions Maersk Locations: U.S, Russia, Ukraine
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Investors scrambling to find a home for their money amid this year's market turmoil may want to look at midcap stocks. The S & P Midcap 400 is down 15% year to date, outperforming the large cap S & P 500's 20% drop in that time. Midcap stocks are also outpacing the large- and small-cap names for the quarter. The S & P Midcap 400 index has jumped more than 9% in the fourth quarter, while the S & P 500 and Russell 2000 are up 8% and 5%, respectively. Midcap stocks are typically those with a market cap ranging between $2 billion and $10 billion.
Wall Street is underappreciating this waste management leader with strong pricing power even if a recession hits, Jefferies said. Analyst Stephanie Moore assumed coverage of Waste Management , upgrading the stock to buy from hold. Over the next few years, Moore expects Waste Management to expand margins by 180 basis points as it benefits from elevated inflation and leverages investments in automation. Shares of Waste Management have held up better than the broader market this year, falling just 2.5%. As recession fears mount, Moore said Waste Management is a defensive play to ride out the headwinds, noting that during nine of the last 11 market corrections, waste companies outperformed the S & P 500.
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