All articles tagged with #ubs
Nike shares fell 4.3% to their lowest level since September 2014, wiping out over $200 billion in market value as investors doubt the depth and timing of a sustained turnaround; UBS data showing July declines in Nike and Jordan sneaker prices in secondary markets adds to concerns about brand momentum and suggests near-term revenue and margin pressure before any meaningful rebound.
Nike shares fell to their lowest since 2014, slipping about 4% and wiping out over $200 billion in market value from their 2021 peak as doubts about a turnaround grow. Weak direct-to-consumer sales and a fresh analyst downgrade weigh on sentiment, with UBS noting July secondary-market prices for Nike and Jordan footwear fell year over year, signaling softer brand momentum before a sustainable growth recovery is seen.
UBS analysts expect Nvidia to report a robust fiscal second quarter with an upbeat sales outlook, underpinned by solid AI-driven demand from data centers and continued leadership in AI accelerators.
UBS analysts say Micron Technology’s earnings outlook is strengthening due to higher memory pricing, signaling potential upside for MU amid a favorable memory pricing environment.
UBS argues Micron’s earnings power is set for a structural reset amid tight memory supply, noting Nvidia cut HBM content in its VR300 GPUs to 512GB from 768GB to stretch scarce memory. HBM premiums are widening, with 2027 industry HBM ASP seen up ~79% YoY and HBM4E potentially above $30/GB, while NAND demand remains healthy. UBS raises Micron’s 2026–2028 EPS to $74.13, $184.89 and $265.65 (well above consensus) and maintains a $1,625 target price, based on roughly 11x its predicted 2029 EPS of about $165.
UBS expects gold to climb to $5,000 per ounce in the first half of 2027, though near-term risks remain as Middle East tensions and inflation concerns influence markets. Spot gold hovered around $4,295/oz, having fallen about 23% from a January record. The Fed left rates at 3.50%–3.75%; UBS sees inflation moderating gradually, keeping rates on hold this year and resuming a easing cycle in 2027, with weakness toward $4,000/oz potentially a buying opportunity.
Markets drift higher in bond yields ahead of the Fed decision, with the 10-year at about 4.614%, the 2-year at 4.291%, and the 30-year near 5.1%; traders price roughly a 76% chance of a September rate hike, while energy prices rise on renewed U.S.-Iran tensions as UBS reports solid Q2 results and a buyback plan, with Europe and Asia opening mixed.
United Airlines is due to report Q2 after the bell, with UBS expecting EPS around $1.91 on 3% capacity growth and a 12.8% rise in unit revenue, while higher jet fuel costs remain the wildcard as prices have surged; management’s guidance on fuel recovery by Q4 and its fourth‑quarter capacity/revenue outlook will shape the full‑year EPS view.
UBS lifts its DRAM and NAND price forecasts amid ongoing memory-supply constraints, predicting DDR contract prices to rise 32% QoQ in Q3 and 18% QoQ in Q4, with NAND up 30% QoQ in Q3 and 12% QoQ in Q4. TrendForce likewise flags persistent shortages, while UBS notes demand growth outpaces supply (roughly 36% vs about 19% for DRAM in 2027), suggesting higher memory prices could persist and drive substantial industry revenue growth into the late 2020s (with price changes varying by product/brand).
Micron Technology (MU) surged roughly 19% after UBS raised its price target on AI-driven demand, signaling renewed investor optimism and helping lift tech stocks broadly.
UBS posted a Q1 net profit of $3 billion, up 80% year-on-year and above analysts’ estimates, with the CET1 capital ratio at 14.7% and a plan to buy back $3 billion in shares after having repurchased $900 million in the quarter; underlying pre-tax profit rose 54% to $3.9 billion.
Micron Technology and peers jumped on news of a U.S.-Iran cease-fire as UBS analysts forecast memory prices to stay elevated into late 2027. DDR memory rose about 95% and NAND up ~80% in Q1, with further Q2 gains of roughly 37% and 40% expected, supported by potential long-term supply agreements that could stabilize prices amid steady demand for AI infrastructure.
UBS analyst Timothy Arcuri raised Micron's price target from $510 to $535, citing a rare memory super-cycle fueled by AI data-center demand for high-bandwidth memory. MU jumped in pre-market trading, with the stock up around 7–11% at publication; Arcuri’s checks suggest DRAM/NAND prices are firming and could keep MU’s elevated valuation multiples longer than usual. The market remains bullish with a Strong Buy consensus and an average target near $543, and MU is up roughly 32% year-to-date as investors bet on memory-cycle tailwinds despite earlier margin pressures.
UBS's five-star analyst Timothy Arcuri reiterates Buy on NVDA, MU, and AMD, raises MU's target to 475, keeps NVDA at 245, and lowers AMD to 310, citing AI-driven demand and hyperscaler capex as catalysts; NVDA is seen as the near-term winner, MU benefits from memory shortages, and AMD retains long-term AI data-center potential.
U.S. stocks opened lower as the S&P 500 slipped below its 50-day moving average and a key Fibonacci level near 6,850, with the VIX above 20 as tech downside and sticky inflation pressure persist. UBS downgraded U.S. equities due to dollar risk and policy volatility. Premarket movers included Netflix, Block and Dollar Tree, with Netflix later jumping after backing away from Warner Bros. Discovery’s bid; Paramount Skydance meanwhile lifted its bid for Warner’s assets. OpenAI’s $110 billion funding round boosted its valuation, adding to Big Tech focus. The PPI rose 0.5% in January, while the 10-year yield dipped back under 4% ahead of the data release. Other headlines noted Block layoffs, a Live Nation upgrade, and fading AAII bullish sentiment.