All articles tagged with #rbc capital markets
A RBC Capital Markets CIO survey of 100+ tech leaders shows enterprise AI budgets expanding into 2H 2026, with token costs mostly manageable; more than half say AI is already in production or will be within six months. OpenAI leads in usage (ChatGPT 57%) and performance (44%), while pricing shifts toward hybrid seat-usage models and 91% of respondents report creating entirely new AI budgets.
RBC Capital Markets researchers say oil is showing black-swan–like price dynamics unseen in other assets, which have moved in normal white-swan patterns. Oil’s price move is a seven-deviation event versus roughly 1–1.5 standard deviations for other assets. If energy-market volatility remains elevated, U.S. stocks could fall 5%–20%, with the risk of about a 20% drop possible; betting markets put roughly a 25% chance that Hormuz traffic normalizes by end-April. The takeaway is oil is driving the risk picture while stocks and other assets remain comparatively calm unless volatility worsens.
RBC Capital Markets raised Micron's price target to $525 from $425 while keeping an Outperform rating, arguing a memory super-cycle driven by AI/data-center demand; Micron shares rose about 5% as higher HBM/DDR content and pricing could bolster earnings through at least 2027.
RBC Capital Markets analyst Tom Narayan remains optimistic about Tesla's long-term prospects, citing the upcoming affordable car as a potential catalyst for growth. He emphasizes Elon Musk's long-term perspective and the significance of Tesla's autonomous driving and energy storage businesses. Despite differing views from other analysts, Narayan maintains a 'buy' rating on Tesla with a price target of $298. Meanwhile, Tesla's energy storage deployments and revenue have been growing significantly, and the company sees autonomous driving as a key driver of its market value.
Palantir's stock surged after winning a $178 million contract with the US Army to build AI-enabled ground stations, but RBC Capital Markets Analyst Rishi Jaluria remains skeptical, stating that the company is not a cutting-edge generative AI innovator and is overvalued compared to its fundamentals. He believes that the gap between the company's messaging and reality will eventually lead to a stock correction, despite the current hype.
RBC Capital Markets predicts that the S&P 500 will reach a new record high of 5,000 by the end of next year, joining other bullish forecasts for 2024. Strong investor sentiment and buoyant equity valuations are expected to drive the index to new heights. Despite relatively high Treasury yields, analysts believe they do not pose a threat to the appeal of equities. The forecast is based on five models that consider sentiment, valuation and earnings, the economy, politics, and the relationship between stocks and bonds. The US presidential election is seen as a potential source of uncertainty for the stock market in 2024.
Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, emphasizes the importance of incorporating history, politics, and market sentiment when building investment theses, rather than relying solely on quantitative models.
PacWest Bancorp shares fell 11% in premarket trading, leading other regional bank stocks lower, as the hard-hit sector resumed its decline. Investors have been unnerved by a rash of deposit outflows from banks and increasing concerns about general stability. Despite recent turmoil, some analysts remain positive about the sector, saying the tumbling stock prices have become disconnected from the companies’ fundamentals.
According to Lori Calvasina, head of US equity strategy at RBC Capital Markets, the stock market may be ignoring all signs of a recession, similar to the post-WWII era. Calvasina found that the 1945 recession was the only one with no market pullback. She listed the resemblance between the government war funding in 1945 to 2020's massive Covid relief and the Fed's rate hikes as a few examples. However, she also acknowledged that there are differences between the two time periods and noted that she isn't a believer of the bull case. Her S&P 500 year-end price target is 4,100.
Moderna's stock fell by 3.2% after an interim analysis of its messenger RNA-based flu vaccine showed that there weren't enough cases of influenza among participants to determine whether the vaccine met the goals of the study. However, there are promising signs that the vaccine is working, according to RBC Capital Markets analyst Luca Issi. Moderna is currently working on an updated version of the shot that could improve its effectiveness against strain B, and plans to begin a confirmatory study of that updated vaccine later this month.