8th July 2024

💬 ”People are always asking me where the outlook is good…But that’s the wrong question. The right question is ‘Where is the outlook most miserable?’” Legendary investor John Templeton

ANALYST STOCK TIPS
Lloyds named as top UK banking pick.

Tesla was upgraded to Buy from Hold by China Renaissance, who revised the price target to $282. Several factors contributed to this reevaluation, including the 'substantial expansion' of Tesla's energy storage business in Q2, improving fundamentals in car sales, and new initiatives such as Full-Self Driving, Robotaxi, and the company’s robotics segments.

Lloyds Bank was upgraded to Outperform status by Exane BNP with a £0.72 price target, representing a 22% upside over the current share price. It now ranks Lloyds as its top UK banking stock (taking the top spot from NatWest). They believe the majority of the Labour party will provide stability for UK equity investors, allowing Lloyds to refocus on operations rather than staying out of the headlines.

Nvidia received a rare downgrade from New Street Research analyst Pierre Ferragu. He believes the base case for Nvidia is already reflected in the share price, and a higher valuation 'will only materialize in a bull case, in which the outlook beyond 2025 increases materially,' a scenario they are not convinced will play out yet. However, the firm maintains that the 'quality of the franchise is nevertheless intact' and may consider buying Nvidia if the price drops. They view AMD and TSMC as the most attractive AI plays currently.

PRESS STOCK TIPS
Barron’s thinks Dell is good buy.

Dell might be known for laptops and PCs, but it is also a major player in servers. This line of business is set to get a boost from increased demand as “organisations demand the best AI kit to power their tech.”

A recovery in PC sales, an improvement in its storage business and an impending upswing in spending on tech hardware as companies refresh their devices were also mooted as reasons to take a look at the Dell.

30 SECOND NEWS
Vive la France.

• 🇫🇷 French bond markets and the CAC 40 (a benchmark French stock index) have had only a muted response to the elections so far. Many had feared negative impacts to France’s economy.

• 💸 Crypto hacking has doubled in the first half of 2024, now standing at $1.4 billion.

• 📈 US inflation data is out this Thursday. Economists expect it to drop from 3.3% to 3%. This will set the scene for whether the Fed will cut interest rates.

• 📺 Samsung’s stock is at a 3 year high thanks to AI and chip demand.