Here are several calls in the market you probably missed during this busy week.
The Bond King Rings the Alarm
DoubleLine Capital founder and CEO Jeffrey Gundlach was in good spirits and top investing form when Yahoo Finance (video above) met him at his snazzy new industrial-themed office in Tampa, Florida, this week for am exclusive sit-down.
Gundlach struck a note of caution on the economic outlook (he sees a hard landing) but also rang the alarm bell to call attention to one market risk not many are thinking about yet.
“I don’t know if it’s a risk for this year … but I think China taking over Taiwan is a very significant risk,” he said. “They [China] love the fact I’m sure that we are destroying a lot of our munitions in defense of Ukraine, which obviously depletes our ability to arm Taiwan. So they’d love us to blow up all our stuff in Ukraine. That balloon coming over, there’s a lot of odd things going on that one should think that the risk of a greater escalation of hostilities is the odds on case.”
Here’s what else Gundlach told us.
Nvidia Hype Forces the Hand of Goldman Sachs
A Yahoo Finance user favorite ticker — Nvidia (NVDA) — saw shares explode some 14% on Thursday. The move wasn’t because the computing giant had an amazing fourth quarter — in fact, sales plunged 21% amid the broader tech demand pullback, as Yahoo Finance’s Julie Hyman and Brad Smith broke down in a new “After the Call” segment.
An upbeat, AI-filled earnings call caused Goldman Sachs analyst Toshiya Hari to upgrade his rating on Nvidia’s stock to buy from hold. Hari’s new 12-month price target on Nvidia: $275, which assumes about 17% upside from current levels.
Said Hari in his upgrade note: “In hindsight, we acknowledge that our decision to remain on the sidelines in anticipation of a pullback in the company’s fundamentals was wrong. Looking ahead, while we recognize that the stock has meaningfully outperformed the group year to date, we are upgrading the stock from neutral to buy with an updated 12-month price target of $275, as we believe the combination of positive estimate revisions and a potential expansion in the stock’s multiple — consistent with historical recovery phases — will drive continued outperformance in the stock.”
For more Nvidia analysis from the Yahoo Finance team, head here.
Here Comes a Big Day for Tesla … and Maybe Deutsche Bank
Yahoo Finance’s Pras Subramanian will be paying close attention to Tesla’s investor day on March 1, where the Elon Musk-led EV maker is expected to release various software updates (among other new initiatives). Knowing the unpredictable Musk, he could very well provide an update on quarter-to-date demand.
One never knows with Elon.
But what Deutsche Bank analyst Emmanuel Rosner thinks he knows is a big move higher in Tesla’s stock due to info stemming from the investor day.
“We believe [the investor day] has the potential to help the stock keep rerating higher,” Rosner said in a client note.
He added: “We expect the company to introduce Master Plan 3 and present the main drivers of its longer-term growth strategy, and in particular its 3rd generation vehicle platform which could support multiple future vehicles and segments at a lower price point. We also anticipate updates on its FSD [full self-driving] software V11, hardware HW4, Cybertruck/Semi production, project Highland refresh of Model 3, and ramp-up of the energy storage business. To support its volume and cost targets, we think Tesla will speak about the role of in-house battery manufacturing technology, capacity expansion, and actions to secure raw materials.”
Rosner lifted his price target on Tesla’s stock to $250 from $220, which predicts roughly 24% upside from current levels. Of course, Rosner is all in with a buy rating on the stock.