Daniel Pinto, President and Chief Operating Officer of JPMorgan, stated at an event in Washington DC that the Federal Open Market Committee (FOMC) will not be cutting rates this year unless inflation falls.
Results for: JPMorgan
JPMorgan analyst Cory Carpenter has upgraded Roblox shares from Neutral to Overweight, raising the price target from $41 to $48. The analyst cited the company’s consistent bookings growth, expecting first-quarter bookings to reach $927 million with a 20% year-on-year increase. Benchmark and Stifel have also maintained their Buy ratings on the stock with price targets of $50 and $53, respectively.
Despite concerns about an air pocket in AI infrastructure development, JPMorgan analysts believe it’s premature to rotate out of artificial intelligence stocks. The recent decline in tech stock prices has led to a sell-off in AI-leveraged companies, but JPMorgan believes the long-term drivers of AI spending remain intact. The bank cautions against rotating into non-AI sectors based on hopes of a recovery, as current data and earnings reports do not yet support such a move.
JPMorgan analysts warn of risks to the US stock market, citing complacency in valuations, inflation, Fed rate hikes, and a rosy profit outlook. They note similarities to last summer’s market correction and highlight factors such as USD strength, rising bond yields, and market concentration adding to the tense backdrop. In contrast, the report sees opportunities in Japanese consumption-related stocks due to expected wage growth and increased personal consumption.