The Club on Friday is updating five price targets for stocks in the portfolio to reflect recent developments at the companies and broader macroeconomic trends. We’re also adding a new stock to the bullpen, while reiterating our support for Morgan Stanley amid the recent upheaval in the banking sector. Meta We’re increasing our price target on Meta Platforms (META) to $220 per share, from $195. This new target represents about 18-times 2024 earnings estimates. Over the last two months, analysts have steadily increased their earnings estimates on Meta, and the stock has appreciated alongside those revisions to above our previous target. Since Jan. 31, the day before Meta announced fourth-quarter results , the consensus earnings-per-share (EPS) estimate for 2023 has moved up about 24%, to $10, from $8.08 per share. For 2024, the consensus EPS estimate has risen 2%, to $12.39, from $10.14 a share. The driving forces behind those analyst revisions are the company’s emphasis on improving efficiency through a second round of layoffs , controlling its costs by reducing its 2023 expenses outlook and, most recently, signs of so-called green shoots at its advertising business for its family of applications. That’s a result of the continued monetization of its Reels short-form video offering on Facebook and Instagram, along with the easing of ad-targeting headwinds. The two fundamental ingredients that drive higher stock prices are earnings and the valuation multiple investors are willing to pay for those earnings. Generally, higher earnings are our preference of the two. Sometimes multiple expansion is just a great fool theory. In essence, you are buying a stock because you think someone else will pay more for it in the future. But when earnings are up, it’s because the value of the company is increasing. With estimates pushing higher, we think the rally in META still has more room to run, prompting us to raise our price target. Nvidia We’re increasing our price target on Nvidia (NVDA) to $300 per share, from $240. This new target puts Nvidia’s valuation at a pricey 67-times the consensus EPS estimate for next year. But the chipmaker is uniquely worthy of such a premium because it is the unrivaled leader in accelerated computing and artificial intelligence (AI), which is finally at an inflection point after having what CEO Jensen Huang called its “iPhone moment.” Nvidia has previously said generative AI — which includes applications like OpenAI’s ChatGPT — has a total addressable market of $600 billion split between hardware and software. Indeed, with the channel inventory correction in gaming largely behind Nvidia and new orders for its H100 graphics processing unit (GPU) accelerating to support generative AI, it’s likely that earnings estimates this year are too low. Energy We’re reducing our price targets on Coterra Energy (CTRA), Devon Energy (DVN), and Pioneer Natural Resources (PXD) to reflect the lower prices of both oil and natural gas. For all three names, we are lowering our price targets to the consensus price, according to FactSet. That means reducing Devon Energy to $68 per share from $82, Coterra Energy to $30 per share from $40, and Pioneer to $259 per share from $300. We’re also downgrading Devon to a 3 rating , meaning we’ll look to sell shares into strength — part of a broader move to consolidate our energy holdings and free up space in the portfolio. Our rationale behind keeping Pioneer is its higher dividend yield of 11.8%, compared with Devon’s 7.6% yield. With Coterra, we support its shift to focus on share repurchases over paying out a variable dividend. Favoring buybacks over dividends make more sense to us, with the stock down more than 30% from last year’s high. Bullpen The newest addition to our bullpen is Foot Locker (FL). The sneakers and athletic-wear retailer plays a large role in the $80 billion sneaker market, which has been growing at a mid-single digit clip thanks to three big tailwinds, according to the company. The first is mass casualization, whereby hybrid work and new norms of wearing sneakers with dress clothes have boosted sneaker sales. The second is traditional and new performance sneaker brands becoming fashion statements. And the third tailwind is the rise of sneakers as a vehicle of individual expression. In the 2021 Piper Sandler Spring Teen Survey, 25% of teens identified as a “sneakerhead” or a sneaker enthusiast that is likely to own multiple pairs. But the rising tide of sneakers hasn’t lifted all ships. Foot Locker has struggled over the past few years because it was mostly thought of as a reseller of Nike (NKE), which has shifted gears to double down on its own direct-to-consumer business. Foot Locker has also been a victim of the shift to shopping on ecommerce platforms, given its large presence in malls. Foot Locker needed a change. And in September, the company appointed retail industry veteran Mary Dillon, the former CEO of Ulta Beauty (ULTA), as its new CEO. On Monday, Dillon unveiled Foot Locker’s new “Lace Up” strategy, in conjunction with its fourth-quarter results and Investor Day event, while stopping by “Mad Money” to talk with Jim Cramer. Dillon is hitting the reset button in 2023 in order to put the business on a path towards sustainable growth. To do this, management plans to diversify its brand mix to offer more sneaker choices to become less beholden to Nike; optimize its store footprint by exiting 400 underperforming stores; launch new store concepts; and accelerate investments in technology and its loyalty program. But all these actions will come at a price, with management expecting 2023 earnings to be down 30%. We don’t want to make light of how big this haircut to earnings will be, but as Foot Locker’s growth initiatives and cost savings programs play out, it should quickly return to growth in 2024. And in the years after that, management’s financial targets look very robust. In 2024 through 2026, management expects annual sales growth of 5% to 6%, with comparable sales growth of 3% to 4%, and earnings before interest and taxes (EBIT) margins reaching 8.5% to 9% by the end of 2026. For comparison, EBIT margins are expected to be 5.7% in 2023. After including share buybacks every year, Foot Locker sees its adjusted EPS growing by a low-to-mid-twenties percentage rate annually from 2024 to 2026. For a stock that currently trades at about 11-times earnings, this isn’t growth at a reasonable price, it’s growth at a very cheap price. Of course, a price-to-earnings multiple that low implies some skepticism around Foot Locker’s ability to make good on its goals. Turnarounds are never easy and the company continues to face headwinds from Nike and its traditional mall presence. So it’s now up to Dillon to deliver. But if she can do for Foot Locker what she achieved at Ulta Beauty, Footlocker’s shares can go much higher. And in the interim, the company’s current 4% dividend yield represents a solid payment to hold us over. Morgan Stanley We continue to see great value in the Morgan Stanley (MS) franchise but haven’t added to our position because we already own so much and can’t meaningfully improve our cost basis while the stock is in the $80s-per-share range. We would like to see it go a little lower, with a dividend yield closer to 4%, as we await a resolution to the troubles at First Republic Bank (FRC). Despite the challenges facing regional and community banks, Morgan Stanley should still emerge as a net winner from the ongoing turmoil. Along with other big banks, Morgan Stanley committed $2.5 billion of uninsured deposits to First Republic Bank, in a likely sign that MS saw inflows since the collapse of Silicon Valley Bank two weeks sparked the current uncertainty. Furthermore, Morgan Stanley’s business model is driven by wealth-and-asset-management fees and is less reliant on collecting deposits and issuing loans. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
An employee arranges a sneaker display at a Foot Locker Inc. store inside the South Park Mall in Strongsville, Ohio.
Luke Sharrett | Bloomberg | Getty Images
The Club on Friday is updating five price targets for stocks in the portfolio to reflect recent developments at the companies and broader macroeconomic trends. We’re also adding a new stock to the bullpen, while reiterating our support for Morgan Stanley amid the recent upheaval in the banking sector.
Capable of delivering up to 1,200 kW of power to get electric commercial trucks back on the road in minutes, the new ABB MCS1200 Megawatt Charging System is part of an ecosystem of electric vehicle supply equipment (EVSE) that ABB’s bringing to this year’s ACT Expo.
ABB E-mobility is using the annual clean trucking conference to showcase the expansion of its EVSE portfolio with three all-new charger families: the field-upgradable A200/300 All-in-One chargers, the MCS1200 Megawatt Charging System for heavy-duty vehicles shown (above), and the ChargeDock Dispenser for flexible depot charging.
The company said its new product platform was built by applying a computer system-style domain separation to charger design, fundamentally improving subsystem development and creating a clear path forward for site and system expansion. In other words, ABB is selling a system with both future-proofing and enhanced dependability baked in.
“We have built a system by logically separating a charger into four distinct subsystems … each functioning as an independent subsystem,” explains Michael Halbherr, CEO of ABB E-mobility. “Unlike conventional chargers, where a user interface failure can disable the entire system, our architecture ensures charging continues even if the screen or payment system encounters issues. Moreover, we can improve each subsystem at its own pace without having to change the entire system.”
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The parts of ABB’s new EVSE portfolio that have been made public so far have already been recognized for design excellence, with the A400 winning the iF Gold Award and both the A400 and C50 receiving Red Dot Design Awards.
New ABB chargers seem pretty, good
ABB’s good-looking family; via ABB.
ABB says the systemic separation of its EVSE enhances both reliability and quality, while making deployed chargers easier to diagnose and repair, in less time. Each of the chargers’ subsystems can be tested, diagnosed, and replaced independently, allowing for quick on-site repairs and update cycles tailored to the speed of each systems’ innovation. The result is 99% uptime and a more future-proof product.
“The EV charging landscape is evolving beyond point products for specific use cases,” continued Halbherr. “By implementing this modular approach with the majority of our R&D focused on modular platforms rather than one-off products … it reduces supply chain risks, while accelerating development cycles and enabling deeper collaboration with critical suppliers.”
Key markets ABB is chasing
HVC 360 Charge Dock Dispenser depot deployment; via ABB.
PUBLIC CHARGING – with the award winning A400 being the optimal fit for high power charging from highway corridors to urban locations, the latest additions to the A-Series All-in-One chargers offer a field-upgradable architecture allowing operators to start with the A200 (200kW) with the option to upgrade to 300kW or 400kW as demand grows. This approach offers scalability and protects customer investment, leading to Total Cost of Ownership (TCO) savings over 10 years.
PUBLIC TRANSIT AND FLEET – the new Charge Dock Dispenser – in combination with the already in market available HVC 360 – simplifies depot charging with a versatile solution that supports pantograph-, roof-, and pedestal charging options with up to 360kW of shared power and 150m/490 ft installation flexibility between cabinet and dispensers. The dispenser maintains up to 500A output.
HEAVY TRUCKS – building the matching charging infrastructure for commercial vehicles and fleets represents a critical innovation frontier on our journey to electrify transportation. Following extensive collaboration with industry-leading truck OEMs, the MCS1200 Megawatt Charging System delivers up to 1,200kW of continuous power — 20% more energy transfer than 1MW systems — providing heavy-duty vehicles with purpose-built single-outlet design for the energy they need during mandatory driver breaks. To support other use cases, such as CCS truck charging, a dual CCS and MCS option will also be available.
ABB says that the result of its new approach are chargers that offer 99% plus uptime — a crucial statistic for commercial charging operations and a key factor to ensuring customer satisfaction. The new ABB E-mobility EVSE product family will be on display for the first time at the Advanced Clean Transportation Expo (ACT Expo) in Anaheim, California next week, then again at Power2Drive in Munich, Germany, from May 7-9.
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Along with Tennessee Tech, Tennessee-based ultralight aircraft company Whisper Aero has secured a $500,000 grant to help advance the company’s innovative electric jet motor concept off the drawing board and onto the testing phase.
Earlier this month, the Tennessee Department of Economic and Community Development (TNECD) announced plans to award $500,000 to Tennessee Tech and Whisper Aero through the Transportation Network Growth Opportunity (TNGO) initiative.
“We look forward to using these award dollars to place students in internships working directly with Whisper Aero leaders,” said Tennessee Tech President Phil Oldham. “By learning from an electric propulsion innovator like Whisper Aero, our students will gain invaluable perspective and can take what they have learned in the classroom and apply it right here in Tennessee.”
The grant will see a Whisper Aero glider fitted with a pair of the company’s eQ250 electric-powered jet “propulsors” for UltraQuiet flight. Tennessee Tech faculty and students will carry out copper-bird ground testing to ensure the safe integration of engines, batteries, and controllers, and kickstart Tennessee Tech’s new Crossville Mobility Incubator.
Whisper Aero’s main claim to fame is its innovative UltraQuiet WhisperDrive (above). It’s effectively an electrically spun ducted fan jet engine that uses a large number of stiff composite fan blades inside a lightweight, acoustically treated duct. With so many blades, the Whisper Aero propulsor can push more air than a conventional prop while spinning much more slowly. As such, the “blade passage frequency” moves up to more than 16,000 Hz – outside the range of most human hearing but not, supposedly, high enough to freak out the beagles.
The Whisper Aero ultralight is effectively an Aériane Swift3 glider fitted with a pair of Whisper’s eQ250 propulsors, each capable of up to 80 lbs. of thrust. The Ultralight has a wingspan of over 40 ft with a maximum L/D of 35:1 and can be stressed to a design loading of +6/-4g, making it capable of some pretty impressive acrobatic feats.
The Swift3 glider is designed for a low speed, low power cruising speed of 45–55 knots with “just” 6.5 hp. Power-off glides from a few hundred feet showed a low sink rate, and a climb rate of 1,250 ft/min with full self-launching power (in other words: the Whisper glider doesn’t have to be towed by a launch vehicle, like a conventional ultralight glider).
Quiet cool
Dual WhisperDrive fans deliver ~160 lbf of thrust; via Whisper Aero.
Range under full power is about 109 miles with current battery tech, but it’s expected that range under the latest EPiC 2.0 energy batteries would rise to nearly 170 miles.
Nathan Millecam, CEO of Electric Power System, said, “EPiC 2.0’s leap in energy density and thermal performance has enabled a significant increase in range, a clear validation of our next-gen cell technology. We are impressed by what the Whisper team continues to achieve in advancing electric aviation.”
The press release concludes explaining that flight tests are expected to show that the Whisper Aero glider can be flown, “a few hundred feet away from neighborhoods without any disturbances, while carrying a 220 lbs. payload with full range,” which is all kind of ominous in today’s political climate, but still pretty neat from a purely tech perspective.
With support from TNECD’s Transportation Network Growth Opportunity (TNGO) initiative, Tennessee Tech University and Whisper Aero are partnering to advance next-generation propulsion technology in the aerospace industry. This collaboration will enhance aerospace research and workforce development, ensuring Tennessee remains a leader in cutting-edge mobility solutions.
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A Tesla Cybertruck owner believed Elon Musk’s claims that the Cybertruck would be able to “act as a boat” and “cross rivers”, and he got his $100,000 stuck because of it.
Elon Musk has often made claims about how Tesla vehicles could float and briefly serve as a boat in the past.
We have never been taken too seriously because Tesla’s warranty states something different about taking the vehicle into water.
However, the CEO doubled down on the claim specifically for the Cybertruck.
Cybertruck will be waterproof enough to serve briefly as a boat, so it can cross rivers, lakes and even seas that aren’t too choppy.
The CEO added that the goal is for a Cybertruck to be able to cross the water between SpaceX’s Starbase and South Padre Island in Texas, which is about 360 meters (1,100 feet).
We have been taking the Cybertruck more seriously with water because we learned that Tesla built a ‘wade mode’ for the truck to be able to go into the water. Tesla says the mode increases the ride height to the max and temporarily “pressurizes the battery pack.”
The problem is that it is activated through the off-roading mode, which is not covered under Tesla’s warranty – so we are taking everything with a grain of salt.
Whenever Tesla’s warranty contradicts what Musk says, it is better to follow to the warranty.
A Tesla Cybertruck owner in Truckee, California, appears not to have received this sage advice since they activated the wade mode and attempted to get into the water.
The Cybertruck owner quickly got stuck. The local California Highway Patrol (CHP) shared some pictures of the aftermath (via Facebook):
CHP Truckee helped with the recovery and commented on the incident:
Cybertruck activated “Wade Mode”… and waded a bit too far… We’re all for testing boundaries… but maybe not the waterline. Remember folks, “Wade Mode” isn’t “Submarine Mode.” If your plans include exploring the great outdoors, make sure to know your limits and the terrain.
There’s no detail on the damage to the Cybertruck, if any.
At the risk of stating the obvious, this is clearly more of a user error than a Cybertruck problem.
I think the verdict is clear: Cybertruck is far from the best electric pickup truck for off-roading.
However, in general, you shouldn’t expect a truck to get out of water on a muddy bank.
I think a lot of Cybertruck owners are new to trucking and off-roading, and they are making the truck look worse than it is at off-roading.
If you want to take your Cybertruck off-road, I recommend to first go with an off-roading guide that can help avoid some simple mistakes like this.
Also, in general, don’t take Elon Musk’s claims at face value when he says that Tesla vehicles can do something that sounds like an exaggeration. It probably is an exaggeration.
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