Bank of America Analyst Ratings
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Opening: US stocks opened slightly higher on Monday. This week the market focuses on Earnings Reports and economic data.
On the evening of April 28, Peking time, U.S. stocks opened slightly higher on Monday. Over 180 S&P component stocks, including Microsoft, Apple, Amazon, and Meta, will release their Earnings Reports this week. Important data such as non-farm employment and GDP will also be released this week. Investors continue to pay attention to the progress of trade negotiations. China has once again clarified that there are no negotiations or discussions on tariff issues between China and the U.S.
Morgan Stanley strategist Wilson: The weakness of the dollar will support US stocks outperforming Other global markets.
Michael Wilson of Morgan Stanley stated that a weaker dollar will support corporate earnings in the USA, helping American stocks outperform Other global markets. As many Wall Street strategists believe the era of American exceptionalism is coming to an end, Wilson uniquely believes that the USA remains a relatively good investment choice. He pointed out that the lower volatility of corporate earnings growth and the perception of higher quality among American companies are other reasons supporting this view. "We are still in the later stage of the cycle, where high-quality firms and large-cap stocks are expected to continue to perform well," he wrote in a report on Monday. Wilson expects
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Bank of America Securities: Raised HANSOH PHARMA's Target Price to 29 Hong Kong dollars and reiterated a "Buy" rating.
Bank of America Securities released a Research Report stating that HANSOH PHARMA (03692) saw a 76.9% surge in sales of almonertinib in the first two months of this year, driving strong sales performance for the company. As a result, the revenue forecasts for 2025, 2026, and 2027 have been raised by 1.9%, 2.5%, and 2.7% respectively, and the Target Price has been increased from HKD 24.8 to HKD 29. Due to its robust R&D capabilities and the expansion of indications for existing major products, the rating is reiterated as "Buy."
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Bank of America Securities: Downgraded Great Wall Motor's Target Price to 12.8 HKD as the first quarter performance was below expectations.
Bank of America Securities released a Research Report stating that Great Wall Motor (02333) plans to launch several new models this year to increase sales. Considering the first quarter performance, Bank of America adjusted the sales forecast for this year to 2027 down by 0.3% each, the gross margin forecast decreased by 2.5, 2.3, and 1.6 percentage points respectively, and the net income forecast was lowered by 15%, 10%, and 8% respectively. The bank lowered the Target Price for Great Wall Motor's H shares from HKD 14.6 to HKD 12.8, maintaining a "Neutral" rating. The company's sales in the first quarter decreased by 7% year-on-year to 40 billion yuan (same below), and sales volume also decreased by 7% year-on-year, mainly due to the period.
Trump's promise of "unprecedented prosperity" is still fresh in memory, yet the U.S. stock market has been left battered and bruised in his first 100 days in office.
Donald Trump promised that if he was elected President of the USA, he would lead Americans to unprecedented prosperity. However, judging by the performance of US stocks in the first 100 days of his presidency, this 'prosperity' is open to interpretation. The market's experience during this time can certainly be described as explosive, but it has not unfolded as investors expected. April 30 marks 100 days since Trump took office. Despite the recent increase, the S&P 500 Index has fallen about 8% since Trump's inauguration, which is set to become the worst performance of US stocks within the first 100 days of a president since Gerald Ford took over the White House in 1974.
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Analysis: What harm is there in being a "slowpoke"? Powell has his own calculations in mind.
In order to ensure that the price increases caused by tariffs do not spread to the entire economy, Powell was mocked by Trump as "Mr. Slowpoke". However, for this chairman of the Federal Reserve, being slow is better than making mistakes. Just a few months ago, Powell was guiding his colleagues and the economy towards a so-called "soft landing." However, the extensive tariffs introduced by Trump disrupted this outlook, and the market expects that US economic growth will slow down this year while inflation will rise. This prompted Federal Reserve officials to adjust their strategy, on one hand, maintaining stable interest rates to suppress inflation, while also preparing to lower interest rates when necessary to prevent a collapse in the labor market.
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Economists at Bank of America expect that the European Central Bank will implement more rate cuts, with interest rates projected to drop to 1.25% by the end of 2025.
Bank of America economists have become more dovish on European Central Bank policies, anticipating a 25 basis point rate cut in December, bringing the benchmark interest rate down to 1.25% this year. Bank of America expects three consecutive rate cuts by September, reducing the current rate from 2.25% to 1.5%, followed by another cut in December. The terminal rate forecast by Bank of America is now lower than the expectations reflected in the MMF, with the market anticipating two more 25 basis point cuts, and there is a 60% chance of an additional rate reduction, with deposit rates expected to drop to 1.5% by the end of the year. Recommended reading: European Central Bank Governing Council member Holzmann: US tariffs may suppress.