Global stocks declined on September 6 due to concerns about slowing growth in China and Europe, leading to uncertainty about the overall economic outlook. Simultaneously, the dollar strengthened as investors assessed the potential for Federal Reserve interest rate changes. MSCI's worldwide stock index dropped by 0.1% as of 0845 GMT. European stocks extended their losses for the sixth consecutive session, driven by worries of a global economic slowdown and rising oil prices. The pan-European STOXX 600 index hit a one-week low, down 0.8% by 0845 GMT. In Asia, the Hang Seng Index closed 150 points lower, and China's CSI300 Index fell 0.22% amid expectations of a slower decline in China's exports for August. Chinese investor sentiment also wavered due to a private-sector survey indicating a sluggish pace of service activity in August. Concerns lingered about potential developments in China's property market, increased food and energy prices, and discussions on further oil production cuts, all of which could impact equity sentiment. Manufacturing activity in Germany, Britain, and the eurozone declined, and their service sectors entered contraction territory, adding to the pessimistic sentiment. Corporate bond issuance surged as the U.S. returned from the Labor Day holiday, putting pressure on U.S. Treasury yields. U.S. 10-year Treasury yields fluctuated, while the dollar reached a six-month high against a basket of currencies. Additionally, the Institute for Supply Management (ISM) is set to release U.S. services PMI data on Wednesday.
Investors are evaluating recent signals regarding potential U.S. interest rate hikes. Federal Reserve Governor Christopher Waller has expressed a cautious approach to raising interest rates, emphasizing that recent data reveals a sustained decrease in inflation. Waller conveyed that there is no compelling reason to take immediate action and that the central bank can exercise patience while observing economic indicators. In an interview with CNBC on Tuesday, Waller indicated his inclination to maintain the status quo by keeping interest rates unchanged during the upcoming central bank meeting. He stressed the importance of relying on concrete data before making significant monetary policy decisions, suggesting that there is no rush to implement rate hikes. Waller's measured stance is grounded in the belief that the available evidence does not warrant any urgent adjustments to interest rates. This perspective underscores the Federal Reserve's commitment to data-driven decision-making, allowing them to make informed choices that align with the broader economic landscape. It implies that the central bank will closely monitor economic developments and trends before taking decisive action regarding interest rates.
The recent resurgence of the US dollar is causing Asian currencies to plummet to levels not seen in several months, reported Bloomberg. This development has prompted authorities in both Japan and China to intensify their efforts to protect and stabilize their struggling exchange rates. In Japan, there has been a heightened concern regarding the rapid depreciation of the yen. The country issued its most robust warning in weeks to address this issue, signaling its readiness to respond to speculative activities in the foreign exchange market. This move underscores Japan's commitment to preventing excessive declines in its currency and maintaining stability. On the other hand, China has taken notable steps to defend its currency, the yuan. The country's central bank issued its most assertive guidance by setting the daily reference rate for the yuan, a managed currency. This action was taken as the yuan was trending towards levels not witnessed since 2007. The move demonstrates China's determination to counteract depreciation pressures on the yuan and ensure its exchange rate remains within acceptable parameters. Japan and China's actions reflect their concerns about the impact of a strengthening US dollar on their respective currencies. They are taking proactive measures to protect the competitiveness of their exports and maintain financial stability in their economies. These moves highlight the delicate balance that central banks and policymakers in Asia must strike as they navigate the challenges posed by currency fluctuations in the global economic landscape.
On the stock market front, analysts are bullish on pharma stocks such as Akero Therapeutics, Inc. (NASDAQ:AKRO), Biogen Inc. (NASDAQ:BIIB) and ORIC Pharmaceuticals, Inc. (NASDAQ:ORIC). Check out the complete article to see the details of these upward revisions in price targets.
Wall Street Analysts See Upside Potential for 10 Stocks with Rising Price Targets
On September 5, Zebra Technologies Corporation (NASDAQ:ZBRA) received a significant boost in its price target from TD Cowen. At that time, ZBRA was trading at $273.25, with a slight 1.0% decrease in its value. However, the outlook for Zebra Technologies Corporation (NASDAQ:ZBRA) took a decidedly optimistic turn as TD Cowen increased its price target range from $270.00 to $290.00. This upward adjustment in the price target not only signifies TD Cowen's bullish perspective on Zebra Technologies Corporation (NASDAQ:ZBRA) but also suggests a strong vote of confidence in the company's performance potential. It implies that TD Cowen anticipates Zebra Technologies Corporation (NASDAQ:ZBRA) could maintain its outperforming status and potentially see a substantial increase in its stock value.
Similar to the way analysts have raised their price targets for Akero Therapeutics, Inc. (NASDAQ:AKRO), Biogen Inc. (NASDAQ:BIIB), and ORIC Pharmaceuticals, Inc. (NASDAQ:ORIC), Zebra Technologies Corporation (NASDAQ:ZBRA) is yet another stock for which analysts have boosted their price projections.
Much like the case with Akero Therapeutics, Inc. (NASDAQ:AKRO), Biogen Inc. (NASDAQ:BIIB), and ORIC Pharmaceuticals, Inc. (NASDAQ:ORIC), analysts have recently increased their price forecasts for Fox Corporation (NASDAQ:FOXA). On September 5, investors and analysts turned their attention to Fox Corporation (NASDAQ:FOXA) as Rosenblatt Securities made a significant move. Rosenblatt Securities decided to revise its price target for the company. The adjustment garnered significant attention, shifting the target price from its previous $33.00 to a fresh high of $34.00. This update signifies an impressive 8% upward potential from the current market price of Fox Corporation (NASDAQ:FOXA) stock, which stands at $31.43. While the "Neutral" rating for Fox Corporation (NASDAQ:FOXA) remained unchanged, this boost in the price target by Rosenblatt Securities suggests a mildly more positive perspective on the company's stock. It implies that analysts at Rosenblatt see potential for Fox Corporation (NASDAQ:FOXA) to experience some growth in its stock value. This adjustment serves as a valuable piece of information for investors, offering insights into market sentiment and expectations regarding Fox Corporation (NASDAQ:FOXA) performance.
Morgan Stanley, on Septmeber 5, made a noteworthy adjustment regarding Eli Lilly and Company (NYSE:LLY). The latest available information shows that Eli Lilly and Company (NYSE:LLY) stock was trading at $558.03. Morgan Stanley decided to raise its price target for the company, elevating it from the prior range of $617.00 to an even more optimistic range of $640.00. This alteration signifies a 15% upside potential for Eli Lilly and Company (NYSE:LLY) stock from its current share price of $558.03. Importantly, Morgan Stanley has retained its "Overweight" rating for Eli Lilly and Company (NYSE:LLY).
This adjustment comes after conducting an exclusive survey among U.S. physicians specializing in Alzheimer's treatment, leading the firm to revise its estimate for Eli Lilly and Company (NYSE:LLY). The analyst believes that the 2024 consensus estimates for Leqembi are now seen as "attainable." With Leqembi receiving full approval in July and anticipated FDA approval for donanemab in Q4, Morgan Stanley expects a relatively modest initial launch, followed by a significant uptick in prescriptions for Alzheimer's medications over the next 12 months in the United States. This increase is anticipated as healthcare centers establish the necessary protocols for prescribing these medications.
Morgan Stanley's decision to bolster the price target suggests a continued bullish stance on Eli Lilly and Company (NYSE:LLY). The adjustment indicates their belief in the potential for Eli Lilly and Company (NYSE:LLY) stock to maintain its "Overweight" status and experience growth, potentially reaching the new target of $640.00. This development offers investors valuable insights into the market sentiment and expectations surrounding Eli Lilly and Company (NYSE:LLY).
On September 5, Robert W. Baird made a significant update regarding Broadcom Inc. (NASDAQ:AVGO). Robert W. Baird decided to increase its price target for the company, raising it from the previous range of $900.00 to an even more optimistic range of $1,000.00. This adjustment represents a 15% upside potential for Broadcom Inc. (NASDAQ:AVGO) stock compared to its current market price of $872.17. Robert W. Baird has maintained its "Outperform" rating for AVGO.
According to the firm, recent checks in the industry suggest a significant uptick in Broadcom's custom ASIC business, with expectations of over 2 million units for the next year. This projection is more than 2.5 times higher than the firm's initial unit estimate for the current year. The growth in Broadcom's semiconductor business is primarily driven by investments in Generative AI, and AI-related revenue has now surpassed the $1 billion mark, as noted by the analyst.
Here is what Aristotle Atlantic Partners has to say about Broadcom Inc. (NASDAQ:AVGO) in its Q2 2023 investor letter:
“Broadcom contributed to outperformance, as the company is seen as a key beneficiary of the investment in generative Artificial Intelligence (AI) and Large Language Models (LLM). The company’s Application-Specific Integrated Circuit (ASIC) chips are being custom-built for customers to use in their data centers for accelerated computing. Broadcom’s networking chipsets are also expected to see increased levels of demand, as customers increase investments to enable the high-speed data transfer required by advanced AI training and inference. The company also announced a new multi-year supplier relationship with Apple, the company’s largest customer.”
On September 5, Argus significantly adjusted its outlook for MongoDB, Inc. (NASDAQ:MDB). In demonstrating their confidence in the company's potential, Argus decided to raise their price target for MongoDB, Inc. (NASDAQ:MDB). The adjustment involved an increase in the price target from $435.00 to a more bullish target of $484.00. This alteration signifies a 23% upside potential for mong stock compared to its current market price of $394.13. Argus has not wavered in its "Buy" rating for MongoDB, Inc. (NASDAQ:MDB).
Argus's decision to elevate the price target underscores their ongoing conviction in MongoDB, Inc. (NASDAQ:MDB) performance and future prospects. This adjustment signifies their belief that MongoDB, Inc. (NASDAQ:MDB) stock not only justifies its existing "Buy" rating but also possesses the potential to reach the newly set target of $484.00.
ClearBridge Investments made the following comment about MongoDB, Inc. (NASDAQ:MDB) in its Q3 2022 investor letter:
“We made limited changes to the portfolio in the third quarter. New buys included embryonic positions in several rapid growers — MongoDB, Inc. (NASDAQ:MDB) and Clear Secure (YOU) — whose valuations have come in quite dramatically. MongoDB is a company we followed for many years before its 2017 IPO. The stock looks very attractive trading at a third of its recent peak in November 2021. The company’s database software is growing rapidly and taking share in a $50 billion plus global market.”
