Goldman Sachs Group Inc. (GS) exceeded third-quarter earnings estimates, driven by strong client demand and a growing deal backlog. J.P. Morgan analyst Kian Abouhossein believes the results signal strength in core franchises and anticipates outperformance for GS shares. The analyst also expects modest EPS upgrades for 2024.
Foot Locker’s stock took a significant dive after the company reported a mixed second-quarter earnings report. While sales slightly exceeded expectations, the company posted a loss per share, causing investors to react negatively. Despite this, J.P. Morgan analyst Matthew Boss remains optimistic, citing improvements in same-store sales, gross margins, and customer loyalty driven by strategic initiatives.
MP Materials (NYSE: MP) shares fell 2.4% on Wednesday after J.P. Morgan downgraded the company to Neutral from Buy, citing weaker long-term NdPr pricing. The downgrade comes as NdPr prices have fallen to levels not seen since November 2020, prompting MP Materials to slow down the ramp-up of its Stage 2 production. J.P. Morgan analysts believe that while Stage 3 could start contributing to EBITDA later this year, large-scale magnet production is still a call option at this point. The analysts also see shipment, EBITDA, and free cash flow risk all weighted to the downside in the near term, although they expect MP Materials to drive improving financial performance over the mid-term.
