Nio Inc's - ADR (NYSE: NIO) June rally has prompted an analyst at Goldman Sachs to move to a cautious stance.The Nio Analyst: Fei Fang downgraded Nio from Buy to Neutral and hiked the price target from $6.40 to $7. The Nio Thesis Nio shares have advanced over 50% since Goldman's June 3 upgrade versus a mere 3% gain by the MSCI China Index, Feng said in a Wednesday downgrade note. (See the analyst's track record here.)Since the upgrade, Nio has completed an 82.8-million-ADS offering, including the green shoe option, at $5.95 per ADS, raising net proceeds of $475 million, the analyst said.This was about 77% higher than Goldman's estimated inflow, which the sell-side firm said removes the liquidity risks between now and the electric vehicle manufacturer's expected break-even point in 2022. Luxury car penetration in China is accelerating at a faster-than-expected rate in 2020, Fang said. Goldman has increased its...
COVID-19 and the ensuing economic shutdowns have changed the rules of the investing game. Amid this unprecendented market shakeup, investors must navigate unfamiliar territory, with the old saws not necessarily as reliable as they were before. According to Bank of America, one of these investing playbook staples is the often-repeated phrase, “sell in May and go away.” Even though the S&P 500’s charge forward had reached somewhat of a standstill, this week has seen the index post a two-day winning streak, and the firm thinks there’s still plenty of room for a summer rally.“...seasonality favors a summer rally as contrarian bullish Farrell Sentiment and futures positioning across large speculators, leveraged funds and asset managers suggest that the pain trade remains higher and equities continue to climb a perpetual wall of worry,” Bank of America strategists wrote. “The second best 3-month period of the year for the S&P 500 going back to...
Shares in Dell Technologies (DELL) spiked 14% in pre-market trading on a report that the PC maker is mulling a spinoff of its roughly $50 billion stake in cloud computing software maker VMware Inc. (VMW)The stock surged to $55.90 in pre-market trading. Meanwhile, VMware shares rose 8.8% to $162.39.Dell is exploring the possibility of divesting the stake or taking other steps that could include buying the rest of the cloud-software giant, the Wall Street Journal reported. The companies are working with outside advisers on a number of scenarios.However, the report also stated that the evaluation deliberations are at an early stage and that no decision is imminent adding that any move is "unlikely" before 2021.Dell’s 81% stake in VMware has been valued at $50 billion, while the PC maker’s own market capitalization stood at $36 billion as of Tuesday.Commenting on the report, five-star analyst Daniel Ives at Wedbush, said that the...
The U.S. National Highway Traffic Safety Administration (NHTSA) said Tuesday it had opened an investigation into 63,000 Tesla Model S cars after reports of media control unit failures that led to loss of the use of a touchscreen. The complaints said the media control unit failures allegedly fails prematurely due to memory wear-out. NHTSA said Tesla used the same unit in 159,000 2012-2018 Model S and 2016-2018 Model X vehicles built by Tesla through early-2018....
