Latest news with #AndresSheppard
Globe and Mail
9 hours ago
- Business
- Globe and Mail
Why PureCycle Technologies Was Racing Higher This Week
Experimental plastics recycling company PureCycle Technologies (NASDAQ: PCT) got a boost this week from a bullish note published by an analyst. By late Thursday evening, according to data compiled by S&P Global Market Intelligence, the company's shares were trading more than 18% higher week to date. A bull reiterates his buy recommendation The PureCycle bull is Cantor Fitzgerald's Andres Sheppard, who on Wednesday morning reiterated his overweight -- buy, in other words -- recommendation on the company's stock. He also maintained his $12-per-share price target. In Sheppard's view, according to reports, PureCycle is a fine long-term play as it leverages patented, exclusive technology for plastics recycling. It also boasts a first-mover advantage and sits in front of a large total addressable market. PureCycle is also actively demonstrating its offerings to the world in a series of customer trials, of which there are more than 30 at present, according to the analyst. A further slate of over 50 trials is pending. Finally, it recently booked its first revenue, moving it out of the experimental and into the commercial stage of its life. The ability to scale The Cantor Fitzgerald pundit also sounded a bullish note about PureCycle's future, pointing out that a facility currently in development in Georgia should add meaningful scale to its operations. That plant is expected to become operational in 2027. Given its unique angle on plastics recycling, PureCycle is certainly an intriguing investment. It's certainly worth a look, as we live in a world awash in plastic and good recycling solutions are welcome. I'd say this is a stock to keep an eye on. Should you invest $1,000 in PureCycle Technologies right now? Before you buy stock in PureCycle Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and PureCycle Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $875,479!* Now, it's worth noting Stock Advisor 's total average return is998% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Globe and Mail
3 days ago
- Automotive
- Globe and Mail
Tesla Inc: Analyst Update & Stock Analysis
Tesla Inc. (TSLA) (About (STA Research): Is a Canadian investment research company, consisting of Financial Professionals specializing in advanced stock research and analysis). Coverage Update Cantor Fitzgerald analyst, Andres Sheppard has reiterated the investment firm's 'Overweight' rating on Tesla Inc., maintaining a 12-month price target of $355.00. This reaffirmation reflects continued confidence in Tesla's long-term growth potential, driven by its leadership in the electric vehicle (EV) sector, ongoing advancements in battery technology, and expanding global production capacity. The Overweight rating suggests that Cantor believes Tesla shares are poised to outperform the broader market or sector average. The price target implies a substantial upside from current trading levels, signaling optimism around the company's ability to scale operations, improve margins, and capitalize on the accelerating global transition to clean energy transportation. Stock Forecast & Analysis As of June 17, 2025, Tesla is trading at $329.13, reflecting a 1.17% increase from the previous close. The stock has experienced a 37% rally since late April, bolstered by investor optimism surrounding Tesla's advancements in artificial intelligence and autonomous vehicle technology, particularly the anticipated launch of its robotaxi service in Austin, Texas, on June 22 Analyst sentiment on Tesla remains mixed, as the consensus rating is 'Hold,' with an average 12-month price target of $289, suggesting a potential downside of approximately 12% from the current trading price . The basis for the cautious approch, is that some analysts have concerns over regulatory issues and increased competition in the electric vehicle market sector. Financial Fundamentals Tesla has exhibited strong revenue growth over the past five years, with a compound annual growth rate (CAGR) of approximately 30%. While its gross margin has compressed to around 17–18% due to pricing cuts and higher input costs (down from previous highs above 25%), the company maintains solid profitability. Operating margins range between 9% and 11%, and net profit margins are approximately 7–10%, which are higher than those of most traditional automakers. Tesla's return on equity (ROE) is strong at around 18–20%, and return on assets (ROA) stands at about 10–12%. From a liquidity standpoint, Tesla is in a healthy position, with a current ratio of roughly 1.5× and a low debt-to-equity ratio of about 0.10×, indicating minimal reliance on leverage. Its interest coverage ratio is well above 20×, reflecting strong ability to meet its financial obligations. The company holds more than $25 billion in cash, providing ample operational and strategic flexibility. Tesla also generates solid free cash flow, currently estimated at $8–10 billion on a trailing 12-month basis. Capital expenditures are rising, reflecting continued investments in artificial intelligence infrastructure and new gigafactories. Its operating cash flow remains consistently positive and supports its growth plans. In terms of valuation, Tesla trades at a forward price-to-earnings (P/E) ratio of around 75× (2025 estimates), significantly higher than the auto industry average. Its EV/EBITDA multiple is also elevated, and the PEG ratio exceeds 2.0×, indicating that the stock is priced at a premium relative to its expected earnings growth. Outlook Tesla Inc. operates in the electric vehicle (EV), energy storage, and AI-powered autonomous technology sectors. It is widely recognized not only as a car manufacturer but also as a technology and energy innovation company. The company's strong brand, vertically integrated business model, extensive charging infrastructure, and first-mover advantage in self-driving technology have helped it establish a significant competitive edge. However, Tesla faces several structural and execution risks, including rising competition from legacy automakers and EV-focused companies such as BYD, Ford, and Volkswagen, as well as increased regulatory scrutiny and heavy reliance on the leadership and public perception of CEO Elon Musk. However, looking at the company's overall picture, Tesla shows robust financial health, strong margins, and efficient capital management, though its current valuation reflects high investor expectations for continued innovation and long-term growth, however the valuation is purely based on the basis that the company is actually a Artifical Intelligence play, according to Ark's Cathy Woods.
Globe and Mail
3 days ago
- Business
- Globe and Mail
Cantor Downgrades Joby Aviation Stock (JOBY) Due to Lack of Near-Term Upside
Cantor Fitzgerald downgraded electric vertical takeoff and landing (eVTOL) aircraft maker Joby Aviation (JOBY) to Hold from Buy with a price target of $9 due to a lack of near-term upside in the stock. While JOBY stock plunged about 8% on Thursday due to the rating downgrade, it has rallied 26.5% over the past month. As a result, the stock is up 9.1% year-to-date, thanks to a favorable executive order signed by U.S. President Donald Trump and the announcement of new deals. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Indeed, the executive order would direct the Transportation Department to develop a program to accelerate eVTOL operations in the U.S., which is expected to benefit players like Joby Aviation and Archer Aviation (ACHR). This comes after Joby Aviation signed a Memorandum of Understanding (MoU) earlier this month with Abdul Latif Jameel to explore establishing a distribution agreement in Saudi Arabia for the company's electric aircraft. The agreement involves the potential delivery of up to 200 Joby aircraft and related services that are valued at about $1 billion. Cantor Moves to the Sidelines on JOBY Stock Interestingly, Cantor analyst Andres Sheppard admitted that Joby Aviation remains one of the best-positioned companies in the eVTOL sector, given its partnerships with Toyota (TM), Delta Air Lines (DAL), and the U.S. Department of Defense. However, the 4-star analyst finds JOBY stocks' valuation to be stretched, following a 60% rally over the past three months and an almost 90% gain in the past year. 'We don't see current levels as a good entry point for investors,' said Sheppard. The analyst noted that while Joby Aviation has solid liquidity, it also has one of the highest cash burn rates in the sector. In fact, the company ended Q1 2025 with about $1.3 billion in total liquidity, including Toyota's $250 million funding, but expects to spend between $500 million and $540 million in 2025. Additionally, Sheppard cautioned about delays in U.S. certification and doesn't expect Joby Aviation to secure full FAA Type Certification until at least the second half of 2026. Finally, Sheppard pointed out persistent uncertainty around the company's unit economics, such as pricing and deployment costs of its air taxi service. Is Joby Stock a Good Buy? Wall Street has a Moderate Buy consensus rating on Joby Aviation stock based on three Buys, three Holds, and one Sell recommendation. Furthermore, the average JOBY stock price target of $8.86 indicates that the stock is trading close to fair value. See more JOBY analyst ratings Disclaimer & Disclosure Report an Issue
Globe and Mail
7 days ago
- Business
- Globe and Mail
Why Shares of Archer Aviation Took Flight This Week
Since last Friday, shares of the electric vertical take-off and landing (eVTOL) aircraft company Archer Aviation (NYSE: ACHR) traded about 15% higher, as of the close of trading on Thursday. The company conducted more successful testing, received positive sentiment from Wall Street, and President Donald Trump's administration issued executive orders that could benefit Archer. More progress on testing Cantor Fitzgerald issued a research note earlier this week, maintaining its overweight rating on the stock and issuing a $13 price target. Analyst Andres Sheppard said the company recently conducted a successful piloted test of its Midnight aircraft. The Midnight reached a cruising speed of 125 miles per hour and an altitude of over 1,500 feet. Archer also announced Thursday that it recently completed a piloted transition flight. The company describes this flight as one that "occurs when the aircraft takes off vertically like a helicopter, accelerates forward, transitions from thrust-borne to wing-borne flight like an airplane with tilt propellers forward, before decelerating and landing vertically." On Wednesday, the Trump administration also issued several executive orders on drones, flying cars, and supersonics. Specifically, one order creates a pilot program to test eVTOLs for air taxis, cargo, and defense logistics. For Archer to eventually set up air taxis for commercial use, it will need regulators to sign off, so the Trump administration's support is a good sign. Compelling and expensive Archer has shown tremendous promise. Not only has its Midnight aircraft achieved many regulatory and operational milestones, but the company has also secured contracts with the Department of Defense through its partnership with Anduril. If commercial air taxis becomes a massive new sector, Archer will likely be one of the few companies that can quickly gobble up market share. However, the company is not yet profitable and already trades at a $6.4 billion market cap, making it tough to go all in just yet. I would start with a smaller, speculative position and build it as Archer achieves regulatory milestones and other big accomplishments. Should you invest $1,000 in Archer Aviation right now? Before you buy stock in Archer Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Archer Aviation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $875,479!* Now, it's worth noting Stock Advisor 's total average return is998% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
News.com.au
06-06-2025
- Automotive
- News.com.au
What's next for Tesla after the Trump-Musk public spat?
Tesla shares plunged yesterday amid Elon Musk's feud with President Trump. MarketWatch's James Rogers and Cantor Fitzgerald's Andres Sheppard look at fundamentals, such as Tesla's earnings report and the coming robotaxi launch, to gauge what's next.
