Results for: Goldman Sachs

Pfizer Inc. (PFE) reported first-quarter earnings on Wednesday, beating consensus estimates. Adjusted earnings per share (EPS) came in at 82 cents, down 33% year-over-year but above the consensus of 54 cents. Sales declined 20% to $14.9 billion, but still exceeded the consensus forecast of $14.2 billion. The decline in revenue was attributed to lower sales of Comirnaty and Paxlovid, as well as a negative impact from foreign exchange. Despite the mixed results, analysts maintained positive ratings and price targets for Pfizer shares. Goldman Sachs reiterated its Buy rating with a price target of $31, while BMO Capital raised its target from $33 to $36 and maintained its Outperform rating. Bank of America Securities retained a Neutral rating with a price target of $35. Goldman Sachs noted that Pfizer’s shares outperformed after the earnings and interpreted the stronger-than-expected Paxlovid results as aligning with the company’s cautious optimism regarding the near-term outlook. The company’s key takeaways included strong performance from Padcev, Prevnar, and Vindaqel, while execution with Nurtec and Oxbryta remains a challenge. Goldman also highlighted Abrysvo’s potential as a catalyst in the future. BMO Capital highlighted Pfizer’s renewed focus on oncology, RSV, and hematology, suggesting that this could be the pivot investors have been waiting for. The firm expects margin improvement and guidance that reflects well-managed expectations with room for upside on the top and bottom lines. BofA Securities remained focused on Pfizer’s six new product launches and two label expansions, with growth currently stemming from Padcev’s label expansion. However, the firm is uncertain when other important products will experience significant changes in 2024 due to reimbursement and access challenges. Pfizer shares gained 2.15% to $27.77 in Thursday’s trading.

Goldman Sachs warns that rising bond yields could derail the stock market rally of 2024. The firm believes that when the 10-year Treasury yield crosses 5%, the correlation between bond yields and stocks turns negative, signaling a period of underperformance for equities. The benchmark 10-year yield has already climbed to 4.67% this year, indicating that the threshold may be approaching. Investors are currently in an “optimism phase” of the cycle, but Goldman cautions that the market is becoming increasingly sensitive to moves in bond yields.

Goldman Sachs analysts have set a $175 price target for Tesla, implying a potential 9.8% decline from its current value. The stock surged over 15% on Monday following the approval of its driver-assistance technology in China, but Goldman highlights the need for further localized improvements and regulatory navigation.

Amidst economists’ expectations of prolonged higher interest rates, Goldman Sachs recommends investors prioritize stocks with stable earnings growth that can withstand economic weakness. Consumer staples like PepsiCo and Colgate-Palmolive, along with industrial companies like Waste Management and Fastenal, are deemed well-suited for this environment.

In a recent note, Goldman Sachs analysts have upgraded the implied value of Blinkit, the quick commerce platform acquired by Zomato in 2022, to an impressive $13 billion. This valuation now exceeds Zomato’s core food delivery business, valued at Rs 98 per share. The upgrade stems from higher gross order value (GOV) estimates for Blinkit, which have exceeded expectations by approximately 50 percent over the past year. Despite being acquired for $568 million in 2022, Blinkit’s implied valuation has grown significantly to $13 billion, representing a six-fold increase year-over-year.

Analysts predict a robust growth trajectory for Blinkit, with a projected 53 percent CAGR in GOV between 2024 and 2027. This growth is expected to contribute to a 32 percent adjusted revenue CAGR for Zomato on a consolidated basis, making it one of the highest growth projections within Goldman Sachs’ food delivery and India internet coverage.

As Zomato continues to enhance profitability, particularly in the quick commerce segment, Goldman Sachs anticipates further potential for its valuation multiples to expand. The brokerage highlights that Zomato’s EBITDA margin is among the highest among global food delivery platforms, a trend expected to continue in the quick commerce business.

Consequently, Goldman Sachs has maintained a ‘buy’ recommendation on Zomato’s stock and increased the target price to Rs 240 from Rs 170. Out of 28 analysts covering Zomato, 24 recommend ‘buy’, while the remaining have a ‘hold’ rating. The brokerage believes that the market is still undervaluing Zomato’s growth and profit potential in the online grocery segment. Zomato’s shares were trading at Rs 185.55, up 2 percent, at 12 pm on April 26.

The release of Q1 GDP data has sparked market volatility, with the US dollar strengthening and equities weakening due to elevated inflation numbers. Goldman Sachs notes that growth was not as weak as initial estimates, however, government spending slowed more than anticipated. The pricing data in the PCE report caught the market off guard, with core PCE projections indicating a higher-than-expected rise of 0.48% compared to the consensus of 0.3%. Goldman Sachs remains cautious, forecasting a more modest increase of 0.33%. The PCE data is scheduled to be released on Friday.

Goldman Sachs has reaffirmed its Buy rating on Boeing (BA) shares, citing the company’s strong demand and long-term growth potential. Despite current production disruptions, Goldman Sachs believes Boeing will overcome these challenges and accelerate production to meet market demand. The aerospace giant’s recent performance has seen strong free cash flow, defense and services margins, providing confidence in its financial position. While uncertainties remain, Goldman Sachs emphasizes the enduring demand for Boeing’s aircraft and its undervaluation based on its potential. InvestingPro Insights further highlights Boeing’s scale and growth potential, but also acknowledges its profitability challenges and analysts’ downward earnings revisions.

In a recent note, Goldman Sachs has increased its Brent crude oil price forecasts for the second half of 2024 and 2025. The bank anticipates that the elevated geopolitical risk premium currently affecting oil prices will moderate in the coming months.

Lockheed Martin Corp (LMT) reported better-than-expected first-quarter financial results, driven by revenue growth and strong earnings. Despite the positive results, analysts have varying opinions on the company’s stock.

Shareholders of Goldman Sachs and Bank of America voted against proposals to divide the CEO and chairman roles at their respective banks. Proxy advisors and the Norwegian sovereign wealth fund had urged shareholders to support the moves, arguing for stronger corporate governance. Despite receiving increased support from last year, the proposals failed to gain a majority, with 33% of Goldman shareholders and 31% of BofA shareholders voting in favor. Goldman’s governance committee maintains that the current structure, including a strong lead independent director alongside the chairman-CEO role, is most effective. BofA shareholders also approved all management proposals, including on executive compensation, while rejecting all shareholder proposals.