Connect with us

Investment

Top analysts say buy stocks like Nike & Nividia

Published

on

Top analysts say buy stocks like Nike & Nividia


A silhouette of a woman wearing a protective face shield and a protective face mask is seen near to a Nike logo at a shopping mall.

Ajeng Dinar Ulfiana | Reuters

Investors made it through another volatile week, as the three major indexes notched gains for the period.

For now, markets seem to be shaking off the fears that have brought shares down in the first place, but the actual concerns haven’t dissipated. The war in Ukraine continues to roil Eastern Europe. Inflation is still hot, and rising fuel prices are denting consumers’ finances. 

Tumultuous times require investors to look past headlines and focus on companies with sound fundamentals. Wall Street’s pros are highlighting the companies they believe have long-term potential, according to Tipranks, which tracks the best-performing analysts.

Here are five names to follow this week.

Riot Blockchain  

Bitcoin values have largely held on over the last month, as have its heavily-associated publicly traded mining companies, like Riot Blockchain (RIOT). 

Although the miner has been affected by bitcoin’s stagnating price over the last quarter, the company has continued to build out its infrastructure and is enhancing its vertically integrated capacities.  

Recently, Darren Aftahi of Roth Capital Partners noted RIOT’s accelerating machine-deployment rate, as well as its latest land purchases as reasons to expect future growth.  

Aftahi rated the stock a buy, and he assigned a price target of $46.  

The analyst acknowledged Riot Blockchain’s underperformance over its last quarter’s earnings. However, he sees its lower revenues as a direct result of the lack of deployment in December. Regardless, he writes that this was but a “speed bump” and that the company should be ramping deployment and its mining operations as RIOT’s infrastructure projects come online.  

Moreover, Aftahi expects the recently acquired infrastructure hardware provider ESS Metron to boost RIOT’s vertical integration. He added that it could “add materially to total revenue given its trialing nine-month revenue.” It will provide “priority access to infrastructure components at cheaper prices” to Riot Blockchain, the anlayst said.  

On TipRanks, Aftahi is ranked as No. 378 out of almost 8,000 expert analysts. He has been successful when rating stocks 38% of the time, and he has returned an average of 32.1% on each one.  

Cloudflare  

Russia’s war on Ukraine has spurred Western entities to begin shoring up their cybersecurity in anticipation of a pick-up in hacking activity. 

The highly competitive space of cybersecurity has several high-growth names ready for liftoff, including web infrastructure company Cloudflare (NET). The firm has been accumulating new customers.  

Shaul Eyal of Cowen wrote that “through its end-to-end scalable cloud native platform, NET stands ready to disrupt the networking, security, and telco markets.” These industries represent a calculated total addressable market of about $100 billion, and NET appears poised for taking considerable market share. (See Cloudflare Estimated Monthly Visits on TipRanks) 

Eyal rated the stock a buy and declared a price target of $250. He stated that this was the highest valuation in regard to a company’s expected FY23 revenues in all his cybersecurity coverage.  

Investors increasingly view the DDoS mitigation software firm has a major player in its field. Cloudflare has been producing about half of its revenues from large enterprise customers, and is “ready to take on names such as AWS,” according to Eyal.  

In regard to sanctions levied on Russian markets, the analyst wrote that NET has a marginal exposure to losses there. Moreover, he commended the company for providing pro bono services to critical infrastructure like hospitals, energy, and water utilities in need.  

Out of nearly 8,000 professionals in TipRanks database, Eyal ranks as No. 14. He has been correct 76% of the time when picking stocks, and maintains an average return of 56.3% across his ratings.  

Nike  

Over the last two years, the retail industry has been plagued by lockdowns, supply-side and logistical constraints, and now runaway inflationary pressures weighing on consumer behavior. However, Nike (NKE) recently beat Wall Street consensus estimates on revenue and earnings per share. The company is also shifting its wholesale business to better adapt to new consumer trends.  

This year, the shoe and athletic equipment manufacturer is experiencing demand that outstrips its supply and inventory. Nike also has been expanding its partnerships in Chinese markets, as noted by Robert Drbul of Guggenheim in his recent report. (See Nike Stock Charts on TipRanks) 

Drbul rated the stock a buy, and he declared a price target of $195.  

The analyst elaborated that the progress in China “will lead it into a new era of marketplace transformation.” Additionally, despite the declining year-over-year revenues in that market, Drbul said that “Nike has the most innovative brand, platforms, and product line” to succeed there.  

In general, retail has been looking encouragingly strong at the current juncture in time. Drbul said that Nike’s industry-leading position should provide it with enough leverage to out-invest and out-innovate its peers.  

While short-term operational challenges remain, Drbul expects them to subside in the long term and for Nike to emerge from them stronger, and more valuable, than before.  

Drbul ranks as No. 111 out of almost 8,000 analysts on TipRanks. He has been correct when picking stocks 68% of the time, and he has achieved an average return per rating of 27.9%.  

Adobe  

Adobe (ADBE) recently reported its quarterly earnings results to a mixed reception. However, despite its soft guidance and slowing business trends, the company remains an industry behemoth.  

Reporting on the stock’s standing is Brian Schwartz of Oppenheimer, who noted that the company’s decent performance could pick up as the year progresses, due in part to digital media price increases. Moreover, the software firm is experiencing healthy demand and promising annual recurring revenue metrics.  

Schwartz rated the stock a buy, and he provided a price target of $560.  

The analyst wrote that Adobe “stands out from almost any group as the pioneering trailblazer of digital creative and marketing tools and services.” Additionally, he noted that the firm has adapted itself into a “verifiable cloud platform success story as it rides atop multiple product pillars of substantial scale, profits, and growth trajectory.” 

Out of almost 8,000 analysts on TipRanks, Schwartz is ranked No. 20. His success rate stands at 71%, and he has returned an average of 50.8% on each rating.  

Nvidia  

Nvidia (NVDA) has been projected to be one of the major benefactors of both the metaverse and the overall transformation to the cloud, and its valuation has reflected that.  

Now that the stock has come down from its lofty prices of last November, the company appears far more attractive. This is the case even though its shares recently rebounded

Nvidia recently hosted its investor day conference, at which its management highlighted the massive $1 trillion total addressable market from which the company intends to capture. NVDA has been announcing and releasing innovative products from its pipeline.

Vijay Rakesh of Mizuho Securities noted this in his recent report, adding that “NVDA’s new networking portfolio supports its focus towards providing a full end-to-end Data Center stack.” This stack includes “software, GPU, Grace GPU, Bluefield DPU (via Mellanox), and Switch,” Rakesh added. 

The analyst rated the stock a buy, and he calculated a price target of $345.  

Furthermore, the company has also been making considerable gains in the advanced driver-assistance systems market, wherein its penetration is expected to increase from about 10% to 50% in the next eight years. Rakesh argues that this total addressable market could be worth up to $300 billion, and represents a considerable growth driver looking forward. (See Nvidia Hedge Fund Activity on TipRanks) 

Out of almost 8,000 expert analysts, Rakesh ranks as No. 33. He has been accurate when picking stocks 71% of the time, and he has returned an average of 47.9% when doing so. 



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Investment

Sushiswap developers propose to divert 100% of fees generated to Sushi’s multisig

Published

on

Sushiswap developers propose to divert 100% of fees generated to Sushi’s multisig


  • Sushiswap developers have submitted a new governance proposal to the community.

  • The proposal seeks to divert 100% of fees generated on the platform to Sushi’s multisig.

  • The funds would be used for Sushi’s multisig for a year or until new tokenomics are implemented.

Sushiswap developers want to divert trading fees

Developers of the decentralised finance (DeFi) protocol, Sushiswap, have submitted a new proposal to the community. According to the proposal, 100% of the fees generated on the platform would be diverted to Sushi’s multisig for one year or until new tokenomics are implemented.

This latest cryptocurrency news comes as Sushiswap is currently facing a significant deficit in its treasury. The deficit threatens the protocol’s long-term operational viability. 

In his proposal, the Head Chef, Jared Gray, said;

“After reviewing expenditures, it’s clear that a significant deficit in the Treasury threatens Sushi’s operational viability, requiring an immediate remedy. In my original proposal, Sushi operated with an annual runway of 9M USD. However, after my detailed review, we reduced that requirement to 5M USD. We made the reduction possible by renegotiating infrastructure contracts, scaling back underperforming or superfluous dependencies, and instituting a budget freeze on non-critical personnel and infrastructure.”

Despite reducing the project’s annual runway requirement from $9 million to $5 million, the treasury still provides for only about 18 months of runway.

The developers are now proposing to set up Kanpai, a fee-diversion protocol. The proposal, if accepted, will lead to 100% of fees diverted to the Treasury multisig for one year or until the project’s new token distribution and reward schemes become active. 

Sushiswap’s fee-diversion solution is temporary

The developers pointed out that the proposal is a temporary solution to a long-term problem. The proposal was put in place because new tokenomics will take time to implement

The Head Chef said;

“Kanpai is a temporary solution to a long-term problem, and a new tokenomics proposal is on the horizon, which will help address the long-term value proposition of Sushi for stakeholders. Sushi must implement a holistic token model that allows the rebuilding of the Treasury and delivers value for all stakeholders while reducing the fiscal liability carried solely by the protocol.”

In addition to Kanpai, the Sushi team said it increased its funding by securing several multi-million dollar partner deals. 

However, the developers added that relying on business development deals is only part of a successful business model to secure Sushi’s future. In October, asset management firm GoldenTree invested $5.2 million in Sushiswap.



Source link

Continue Reading

Investment

Europe’s McGuinness pushes for global rules after FTX collapse

Published

on

Europe's McGuinness pushes for global rules after FTX collapse


Mairead McGuinness, financial services commissioner for the European Union spoke to CNBC in Brussels.

Bloomberg | Bloomberg | Getty Images

BRUSSELS — Some market players are purposely avoiding regulation in the crypto space, the EU’s top regulator told CNBC as she called for a global approach to protect retail investors.

The European Union agreed in June on the Markets in Crypto-Assets (MiCA) regulation. This is meant to reduce risks for consumers buying crypto assets. In essence, the rules mean providers would become liable if they lose investors’ crypto-assets, but the regulation is only due to start 12 months from now.

“It will not come into effect for a year, but I think it’s already having an effect,” Mairead McGuinness, European commissioner for financial services, told CNBC Tuesday.

She said that firms in the crypto industry that want to be part of the regulated system — and therefore have the seal of approval from a regulatory authority — are “already acting in a way that our legislation is pointing.”

However, she added that some crypto players are choosing to, and are fundamentally against, stricter rules.

“Some of those who were involved in crypto, from the very outset, were doing it because they didn’t want to be part of the regulated, managed system. They want it to be separate from and in parallel to it. That’s a very dangerous path,” she said.

Recent crises in the crypto world have clearly exposed the risks for consumers. The recent collapse of FTX, an exchange once valued at more than $30 billion, and the crash of supposed “stablecoin” terraUSD both highlighted the risks associated with these assets.

U.S. interest

The European Union has been stepping up rules in this space and has pushed for a global approach. In meetings last month, McGuinness discussed crypto regulation with her U.S. counterparts.

“What I found in the U.S. is huge interest in what we were doing here, and the markets and crypto assets legislation. And I believe there will be developments there,” she said.

In the wake of the downfall of FTX, some U.S. policymakers urged the Treasury to do more to tackle the risks for investors. The U.S. Treasury was not immediately available for comment when contacted by CNBC.

In the U.K., officials are reportedly working on a new plan to regulate crypto as well.

“We have seen events, let me put it like that, in this crypto space. Which maybe is a wake-up call for those who thought that investments would only increase in value,” McGuinness said.

She added that crypto is like climate change, in that it needed a global approach.



Source link

Continue Reading

Investment

New crypto wallet designed by iPod creator Tony Fadell

Published

on

New crypto wallet designed by iPod creator Tony Fadell


The creator of the iPod, Tony Fadell, designed a new hardware wallet for people to store their cryptocurrency.

The product, created by French crypto asset security firm Ledger, launched at the company’s annual Ledger Op3n event Tuesday. Its launch comes at a time when trust in centralized crypto platforms is fading as a result of the collapse of Sam Bankman-Fried’s FTX.

It’s called Ledger Stax and resembles a small smartphone or credit card reader. Measuring 85 millimeters long and 54 millimeters wide, it’s roughly the same size as a credit card. It is also about 45 grams, weighing less than an iPhone. Users can deposit or exchange a range of tokens, including bitcoin, ether, cardano, solana and nonfungible tokens, or NFTs.

The Ledger Stax sports a black-and-white E-ink display, similar to that of Amazon’s Kindle e-readers. It also includes magnets, so that multiple devices can be stacked on top of each other, like a pile of books or cash — hence the name Stax. Users can connect it to their laptop through a USB cable or their phone via Bluetooth.

“Many Ledger owners have multiple devices, some store their NFTs, some store different crypto, some have multiple because they have different clients that they store for,” Fadell told CNBC in an interview.

The display also has a spine that curves around the edge, “so you can see what’s on each one, just like an old CD or cassette tape or book,” he said.

The iPod for crypto?

Initially, Fadell turned down working with the Ledger team on Stax. “This was not something I wanted to do,” he said. “When they first approached me I’m like, ‘I don’t want to do it. No thank you.’ I was interested in crypto, I had crypto at the time but I’ve basically got a lot of other things to do.”

The Ledger Stax is the latest hardware crypto wallet from French startup Ledger. It’s roughly the same size as a credit card and sports an E-ink display.

What is DeFi, and could it upend finance as we know it?

Ian Rogers, Ledger’s chief experience officer and a former executive at Apple and LVMH, said he’s confident about the mass market potential.

“There’s no question about the need for security and there’s no question that we lead increasingly online lives,” he told CNBC. “Instagram, Nike, Starbucks, Amazon — many companies are finding real life use cases for digital assets. And so I think that we will grow with that.”

Not your keys, not your crypto

After the recent collapse of FTX into insolvency, crypto holders have sought alternative means of storing their digital assets. One is via cold storage, where a user’s private key — the code they need to access their account — is kept on a device that’s not connected to the internet.

Since these wallets are offline, they’re less susceptible to hacks or failures. Ledger says that, to date, none of its devices have been hacked.

Ledger has seen a boost in sales as a result of fears around the contagion from the FTX collapse. Last week, BlockFi, a crypto lender, entered bankruptcy after revealing Alameda Research, Bankman-Fried’s trading firm, defaulted on $680 million worth of loans from the company.

November “will be our all-time high biggest month ever,” Pascal Gauthier, Ledger’s CEO, told CNBC. “All the news that you’ve seen since the beginning of the year, from Celsius all the way to FTX, has really pushed a lot of users towards self custody.”

Ledger has sold more than 5 million devices to date.

However, a sharp downturn in digital asset prices could spell trouble for the company with retail investors becoming more wary. Only 21% of Americans feel comfortable investing in cryptocurrency, according to Bankrate’s September survey. That’s down from 35% in 2021.

The Ledger Stax will compete with a slew of consumer gadgets this holiday shopping season, including Apple’s new iPhone 14, at a time when budgets are being constrained by rising inflation.



Source link

Continue Reading

Trending