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JPMorgan's REIT Reshuffle: Ventas Stock Climbs, Cold Storage Giants Slip
Benzinga· 2025-06-23 17:24
JPMorgan analyst Michael W. Mueller announced several ratings changes during the firm’s quarterly CRE update webinar.The analyst upgraded Ventas Inc. VTR from Neutral to Overweight and raised the firm’s December 2025 price target to $72 from $70.Mueller cited robust internal and external growth, including double-digit same-store net operating income gains and a steady pace of acquisitions, as key drivers supporting a positive outlook for normalized FFO per share growth.The analyst noted that compared to pee ...
CarMax Beat Expectations, But Here's What Could Still Hold It Back
Benzinga· 2025-06-23 17:07
Core Viewpoint - CarMax reported strong first-quarter earnings, exceeding analyst expectations, which led RBC Capital to maintain an Outperform rating and raise the price target from $80 to $81 [1]. Financial Performance - CarMax's first-quarter earnings per share were $1.38, surpassing the consensus estimate of $1.21 [1]. - Quarterly sales reached $7.55 billion, exceeding the analyst consensus estimate of $7.47 billion [1]. - Retail used unit sales increased by 9.0%, while comparable store used unit sales grew by 8.1%, both outperforming expectations [2][3]. Operational Insights - The company experienced a sequential improvement in category demand and market share gains, with each month of the quarter showing positive results, particularly April [3]. - SG&A as a percentage of gross profit improved to 73.8%, a reduction of approximately 680 basis points, attributed to cost management efforts despite rising compensation costs [4]. - CarMax repurchased $200 million in shares during the quarter, a significant increase compared to previous trends [4][5]. Challenges and Risks - CAF income declined by 3.6% to $141.7 million, primarily due to increased loan loss provisions, reflecting seasonal sales patterns and credit quality concerns [6]. - The company anticipates net sales growth of 1.9% and 3.9% for 2025 and 2026, respectively, with adjusted EPS estimates of $3.88 and $4.52 [7].
HubSpot's Breeze AI Platform Could Add Millions In Revenue By 2027: Analyst
Benzinga· 2025-06-23 17:03
Core Viewpoint - Bank of America Securities analyst Brad Sills maintains a Buy rating on HubSpot, Inc. with a price forecast of $740, focusing on the potential of the Breeze AI platform despite not expecting material revenue until fiscal 2027 [1][2] Group 1: Breeze AI Platform - The modeling exercise for Breeze AI aims to demonstrate its potential to contribute to growth without requiring overly optimistic assumptions, leveraging HubSpot's existing customer base [2] - Breeze AI's most compelling use cases are in sales and marketing, similar to Salesforce CRM, with the potential for increased sales productivity and revenue uplift [3] - HubSpot's Breeze agents need to address more complex workflows to encourage adoption, as customers in the small to medium-sized business market are already utilizing third-party tools like ChatGPT for basic tasks [4] Group 2: Data and Automation - HubSpot manages over 200 million company and buyer profiles, which allows Breeze to perform meaningful workflow automation over time [5] - The acquisition of Frame AI enhances Breeze's capability to process large volumes of unstructured data [5] - HubSpot has expanded the use of credits for Customer Agents across various hubs, with Pro and Enterprise customers receiving a baseline credit package [6] Group 3: Revenue Projections - In a base case scenario for Customer Agents, Sills estimates revenue contributions of $30 million and $84 million for fiscal 2026 and 2027, respectively, translating to 1% and 2% points of growth [6] - Projected sales for fiscal 2025 are $3.04 billion, with an EPS of $9.33 [6] Group 4: Stock Performance - HubSpot's stock (HUBS) is currently up 1.08% at $540.26 [7]
Golden Cross Alert: Honeywell Nears A Bullish Breakout As Strategic Shakeup Gains Traction
Benzinga· 2025-06-23 17:01
Core Viewpoint - Honeywell International Inc. is approaching a Golden Cross, indicating a potential bullish trend shift in its stock performance, currently priced at $221.80, amidst a moderately bearish market backdrop [1][2]. Technical Indicators - The 50-day simple moving average (SMA) is at $215.17, nearing the 200-day average of $215.40, suggesting a bullish crossover is imminent [2]. - Short-term indicators like the eight-day SMA ($224.00) and 20-day SMA ($225.14) indicate some selling pressure, while longer-term indicators remain optimistic [2]. - The MACD is at 1.54, and the RSI is at 48.85, indicating growing buying interest and setting the stage for a potential technical breakout [3]. Strategic Developments - Honeywell is undergoing a significant portfolio restructuring, planning to split into three independent, publicly traded firms by mid-2026, focusing on Automation, Aerospace Technologies, and Energy Transition [4]. - The company has sold its Personal Protective Equipment business for over $1.3 billion, reflecting its commitment to streamline operations and enhance shareholder value [5]. Aerospace Innovations - Honeywell is expanding its partnership with NXP Semiconductors NV to advance autonomous flight technology, showcasing its Anthem avionics system at CES 2025 [6]. - The company has secured a new U.S. government contract for speech anonymization technology, emphasizing its focus on aviation safety and privacy [6]. Implications for Investors - The potential completion of the Golden Cross could signal that Honeywell's evolving business strategy is gaining market traction, suggesting a possible upward movement in stock performance after a period of stagnation [7]. - With a diversified portfolio aligned with high-growth megatrends and a clearer business structure on the horizon, the Golden Cross may signify the start of a new chapter in shareholder returns [8].
These Analysts Increase Their Forecasts On CarMax After Upbeat Q1 Results
Benzinga· 2025-06-23 16:27
Financial Performance - CarMax reported earnings per share of $1.38, exceeding the analyst consensus estimate of $1.21 [1] - Quarterly sales reached $7.55 billion, surpassing the analyst consensus estimate of $7.47 billion [1] Business Expansion - The company opened two new stand-alone reconditioning/auction centers in El Mirage, Arizona, and Midlothian, Texas [2] Management Commentary - CEO Bill Nash highlighted the fourth consecutive quarter of positive retail comps and double-digit year-over-year earnings per share growth, emphasizing the strength of the company's earnings growth model [3] - Nash noted the importance of the omni-channel experience and the integration of associates, stores, technology, and digital capabilities in enhancing customer experience [3] Analyst Ratings and Price Targets - Truist Securities maintained a Hold rating and raised the price target from $72 to $74 [6] - RBC Capital maintained an Outperform rating and increased the price target from $80 to $81 [6] - Needham reiterated a Buy rating with a price target of $92 [6]
Disney's 'Elio' Posts Worst Pixar Opening: Here's Why Media Giant Likely Isn't Worried
Benzinga· 2025-06-23 16:26
Core Insights - The latest Pixar film "Elio" has underperformed at the box office, grossing $21 million domestically during its opening weekend, marking the worst opening for a Pixar film in modern history [1][2] - The film's total worldwide gross for the opening weekend was $35 million, including $14 million from international markets [2] - "Elio" is the only Pixar film scheduled for release in 2025, which may negatively impact Disney's comparable sales against the successful 2024 film "Inside Out 2," which grossed $1.69 billion worldwide [2] Box Office Performance - "Elio" ranked third at the box office, behind "28 Years Later" and "How to Train Your Dragon," which grossed $37 million in its second weekend, contributing to a total of $160.4 million domestically [1][3] - Five of the top ten grossing films in 2025 are kid-friendly, with "A Minecraft Movie" leading at $423.9 million and Disney's live-action "Lilo & Stitch" at $386.7 million [4][5] Future Outlook - Despite the disappointing opening of "Elio," Disney has a strong lineup of upcoming films, including "The Fantastic Four: First Steps," "Tron: Ares," "Zootopia 2," and "Avatar: Fire and Ash," which could bolster box office performance in the second half of 2025 [8][9] - Disney has already surpassed $1 billion at the domestic box office year-to-date in 2025 and aims to reach the $2 billion milestone for the second time since 2019 [7][8] Stock Performance - Disney's stock was trading down 1.07% at $116.37, with a year-to-date increase of 5.7% and a 14.8% rise over the last year [10]
Accenture Analysts Slash Their Forecasts After Q3 Earnings
Benzinga· 2025-06-23 16:15
Core Insights - Accenture Plc reported better-than-expected third-quarter earnings with earnings per share of $3.49, surpassing the analyst consensus estimate of $3.31 [1] - The company achieved sales of $17.7 billion, slightly exceeding the analyst consensus estimate of $17.30 billion, with an 8% increase in U.S. dollars and a 7% increase in local currency [1] Financial Performance - The company narrowed its fiscal year 2025 revenue growth outlook to 6%-7% in local currency, up from a prior range of 5%-7% [2] - Accenture forecasts diluted earnings for 2025 to be between $12.77 and $12.89 per share, compared to the previous estimate of $12.55 to $12.79, and above the consensus of $12.75 [2] Market Reaction - Following the earnings announcement, Accenture shares rose by 1.4% to trade at $289.35 [3] - Analysts adjusted their price targets for Accenture after the earnings report, with BMO Capital lowering the target from $355 to $325, Barclays from $390 to $360, and Guggenheim from $360 to $335 [5]
Major Escalation In Middle East Tensions Places Crosshairs On Direxion's Palantir-Focused Bull And Bear Funds
Benzinga· 2025-06-23 16:14
Group 1: U.S. Involvement in Israel-Iran Conflict - The U.S. has launched attacks on key Iranian nuclear sites, marking a significant escalation in the Israel-Iran conflict [1] - This military involvement raises concerns about commercial activity in the Strait of Hormuz, a vital waterway for global oil trade [2] - The potential for retaliation from Iran could lead to increased demand for defense stocks, particularly benefiting companies like Palantir Technologies Inc. [2] Group 2: Palantir Technologies Inc. (PLTR) Overview - Palantir's core product, Gotham, is utilized by government institutions for counterterrorism analysis, which may see increased sales due to heightened military activity [3] - The stock is currently trading at a high valuation of nearly 600 times trailing 12-month earnings, indicating a premium that assumes flawless execution [4] - Over 50% of Palantir's revenue comes from U.S. government contracts, making the company vulnerable to budget constraints and political changes [5] Group 3: Investment Vehicles Related to PLTR - Direxion offers ETFs focused on Palantir, including the PLTU, which aims for 200% of PLTR's daily performance, and the PLTD, which seeks the inverse performance [6][7] - The PLTU ETF has performed well, increasing by 132% since the beginning of the year, while the PLTD ETF has lost over 59% of its value [10][13] - Both ETFs provide a mechanism for retail investors to speculate on PLTR's performance without engaging in more complex derivatives trading [8]
UnitedHealth, CVS Among Major Insurers To Fast-Track Prior Authorizations: Will It Cut Profits Even More?
Benzinga· 2025-06-23 16:07
Group 1 - Major U.S. health insurers, including CVS Health, UnitedHealth Group, and Elevance Health, have agreed to measures to expedite patient care and reduce paperwork for providers [1][2] - The changes will affect commercial insurance and some Medicare and Medicaid plans, potentially benefiting 257 million Americans [2] - Insurers recognize that these changes may increase patient care usage, impacting profits, but are deemed necessary for healthcare system improvement [2] Group 2 - Healthcare stocks are underperforming the broader market, with the Healthcare Select Sector SPDR Fund trading at its lowest relative value to the S&P 500 in over a decade, reflecting a 40% drop from 2015 levels [3] - Historical trends indicate that significant undervaluation in healthcare often leads to strong rebounds, as seen after downturns in 2001 and 2008 [4] - Analysts remain optimistic, with 59 out of 60 healthcare companies in the XLV having 12-month price targets above current prices, indicating an average expected upside of 17% [4] Group 3 - A common standard for electronic prior authorization requests is set to be established by 2027, aiming for at least 80% of requests to receive real-time responses [5] - The number of services requiring prior authorization is expected to be reduced by 2026, streamlining processes to alleviate the administrative burden on healthcare providers [5]
AST SpaceMobile Stock Downgraded, Rocket Lab Prepares Electron Launch: Space Stock Countdown
Benzinga· 2025-06-23 15:40
Group 1: AST SpaceMobile Inc. (ASTS) - AST SpaceMobile shares were downgraded by Scotiabank analyst Andres Coello from Sector Outperform to Sector Perform with a price target of $45.40 [1] - The stock has experienced a significant rise of over 90% in the past month and is set to join the Russell 1000 Index on June 27 [2] Group 2: Rocket Lab Corp. (RKLB) - Rocket Lab announced two new Electron missions for a confidential commercial customer, with the first launch scheduled for Tuesday [2] - The stock has increased by more than 23% over the past five days, continuing its upward trend [2] Group 3: Voyager Technologies, Inc. (VOYG) - Voyager Technologies shares have declined by 20% since its IPO on June 11, starting at $69.75 per share and trading at $44.73 on Monday [3] Group 4: Lockheed Martin Corp. (LMT) - Lockheed Martin shares are trending higher due to increased geopolitical tensions following U.S. attacks on Iranian targets [3] - The company proposed an air-defense system to British government officials, aligning with President Donald Trump's Golden Dome initiative [4]