Tesla Shares Charge on Upgrade, Disney Lacks Near-Term Catalysts, and 3 More Hot Stocks
Tesla Motors (NASDAQ:TSLA): A bullish note from Deutsche Bank has set shares of Tesla racing nearly 8 percent in trading. The bank said, “based on conversations with [management] and monitoring information available on Tesla owners’ blogs, we believe that the company is on-track to modestly outperform Q3 margin expectations, that demand has continued to grow in the US and Europe.” Recent price hikes on options have also had little to no effect on Model S demand, while 22 percent of the company’s float remains shorted. The bank has a $200 price target on Tesla shares.
Walt Disney Co. (NYSE:DIS): Morgan Stanley dropped its rating on Disney to Equal-weight based on concerns that the company lacks near-term catalysts. Given that there are no Pixar movies scheduled for release next year, due to a delay in the studio’s launch schedule, Morgan Stanley’s downgrade could lead others down the same road.
PetroChina Co. (NYSE:PTR): Wison, a major supplier to PetroChina, revealed that Chinese authorities seized its records and froze some of its bank accounts as a part of “an unspecified investigation,” which conveniently coincides with a probe into PetroChina for corruption.
Petroleo Brasileiro S.A. (NYSE:PBR): Speculations of U.S. spying have pushed PetroBras to commit around $9.6 billion in data security over the next five years, according to the Financial Times. PetroBras President Maria das Graças Foster said that the move was “personally approved by the board of directors” and will include measures designed to keep the transfer of information related to seismic studies off the internet.
Dr Pepper Snapple Group (NYSE:DPS): “We see potential for top-line disappointment based on broad-based weakness in US non-alcoholic ready to drink beverages,” said Goldman Sachs analyst Judy Hong in the firm’s downgrade of the drink giant to Sell from Neutral. “Higher spending behind the TEN platform is eating into cost savings while providing minimal sales lift; and valuation is likely to further compress given weakening fundamentals.”