KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
The S&P 500 (SP500) finished the week positively, bolstered by fresh economic data hinting at the easing of monetary policy. Market participants paid close attention to the Federal Reserve's monetary policy committee meeting and remarks from Fed chair Jerome Powell. For the week, the tech-heavy Nasdaq (COMP) climbed 1.7%, while the blue-chip Dow (DJI) gained 0.4%.
Spirit Airlines and Frontier: Uncertain Outlook
Raymond James downgraded both Spirit Airlines and Frontier Group Holdings to Underperform from Market Perform. The brokerage cited unclear market and product modifications, potential headwinds from softer consumer trends, the Paris Olympics, and pre-election corporate travel impacts as key reasons. Analyst Savanthi Syth highlighted weak fare trends as a challenge, noting that even legacy carriers like Delta Air Lines and United Airlines are starting to experience some turbulence.
Nvidia: Downgraded by New Street Research
Nvidia received a rare downgrade from New Street Research, lowered to Neutral from Buy with a 12-month price target of $135. Analyst Pierre Ferragu noted limited further upside unless there is significant improvement in the outlook beyond 2025. Despite this, Ferragu emphasized the quality of Nvidia's franchise and expressed willingness to buy again on prolonged weakness.
Atlassian and CrowdStrike: Mixed Analyst Sentiments
Piper Sandler upgraded Atlassian to Overweight from Neutral, raising the price target by $25 to $225. Analyst Rob Owens described the current valuation as an attractive entry point into one of the most durable companies in their coverage. Conversely, CrowdStrike was downgraded to Neutral from Overweight due to high valuation and less favorable risk-reward dynamics.
Home Builders: Downgrades on Softening Summer Activity
Citi downgraded home builders Lennar and D.R. Horton to Neutral from Buy, citing a slowdown in summer housing activities. The brokerage cut price targets for both companies, anticipating limited near-term catalysts until 2025.
NextEra Partners: Dividend Growth Concerns
NextEra Energy Partners was downgraded to Sector Perform from Outperform by RBC analyst Shelby Tucker. The price target was reduced from $38 to $30, with concerns over the sustainability of long-term 5%-8% dividend/unit growth amid insufficient growth from wind repowering.
PayPal: Upgraded on Profitable Growth Prospects
Susquehanna upgraded PayPal to Positive from Neutral, citing a focus on profitable growth and the recent dip in stock price. Analyst James Friedman set a price target of $71, highlighting consumer-facing improvements and a stronger value proposition for branded checkout.
Meta Platforms: Divergent Views on GenAI Monetization
Raymond James reiterated a Strong Buy rating on Meta Platforms, raising the price target to $600 from $550 due to bullish views on GenAI monetization. However, Needham maintained an Underperform rating, expressing concerns over Meta's investments in LLMs and the Metaverse, which could impact returns on invested capital.
Additional Analyst Actions
- Adobe: Mizuho added Adobe to its monthly top picks, citing underappreciated AI monetization potential.
- Tesla: Wells Fargo included Tesla in its Q3 Tactical Ideas List, predicting a near-term decline due to expected lower delivery growth.
- Incyte: BMO Capital Markets downgraded Incyte to Underperform from Market Perform, pointing to potential negative impacts from a $2B share buyback.
Overall, the week saw significant analyst actions across various sectors, reflecting both optimistic and cautious outlooks amid evolving market conditions.
Maybe time to sell NVIDIA?
ReplyDeleteYa. Probaly overpriced at this level. But a lot of people also missed the boat. I'm one of the those so I might be bias in my view here.
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