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Tredu Team | Insights

UBS Upgrades Public Service Enterprise Group to Buy, Expects Big Upside from Nuclear Contracts

UBS Upgrades Public Service Enterprise Group to Buy, Expects Big Upside from Nuclear Contracts

UBS upgraded Public Service Enterprise Group (NYSE:PEG) to Buy from Neutral and raised its price target to $97 from $86, citing strong utility fundamentals and significant hidden value potential tied to PEG’s nuclear portfolio. The analysts highlighted PEG’s ability to grow EPS at a solid 6.5–7.0% annually without needing to issue equity over its five-year plan, underscoring a stable financial foundation. A key upside catalyst is the possibility of securing a nuclear power purchase agreement (PPA) for about one-third of PEG’s nuclear output at ~$84/MWhr, similar to recent market deals, which UBS values at roughly $7 per share—implying full contracting upside could exceed $20 per share. UBS noted that while investors remain focused on New Jersey policy uncertainties and timing of a potential PPA announcement, there is clear market appetite for baseload nuclear assets. The firm expects PEG’s nuclear assets to ultimately unlock meaningful shareholder value, paralleling successes seen at peers like Constellation Energy (CEG) and Talen Energy (TLN). Factoring in this potential value realization, UBS sees PEG’s 2027 EPS reaching $4.20, representing an attractive discount to current forecasts, and positioning shares for significant re-rating as nuclear contracts materialize.

Tredu Team | Insights

Raymond James Upgrades U.S. Bancorp to Strong Buy, Sees Profitability Surge Driving Re-Rating

Raymond James Upgrades U.S. Bancorp to Strong Buy, Sees Profitability Surge Driving Re-Rating

Raymond James upgraded U.S. Bancorp (NYSE:USB) to Strong Buy from Outperform and raised its price target to $57 from $51, citing growing confidence that the bank will achieve its medium-term profitability goals. The analysts pointed to expected positive operating leverage of over 200 basis points this year and more than 150 basis points in 2026 as key drivers of margin expansion and earnings growth. Such improvements, Raymond James argues, should help shift investor sentiment from skepticism to optimism, transforming USB’s current “show me” narrative into a compelling growth story. With shares still trading at a discount relative to peers, the firm sees a unique buying opportunity, believing that reaching these profitability milestones could catalyze a re-rating of the stock and deliver significant upside for investors.

Tredu Team | Insights

William Blair Downgrades Tesla, Shares Down 7%

William Blair Downgrades Tesla, Shares Down 7%

William Blair downgraded Tesla (NASDAQ:TSLA) to Market Perform from Outperform, warning that a combination of policy changes and declining regulatory credits pose significant risks to both demand and profitability. The company’s shares fell over 7% intra-day today. The analysts noted that while the removal of the $7,500 EV tax credit under the “Big Beautiful Bill” was anticipated and already a concern for Tesla’s demand outlook, the unexpected elimination of corporate average fuel economy (CAFE) fines creates an additional and more direct threat to Tesla’s bottom line. The firm estimates over $2 billion in annual profits tied to regulatory credit sales could now be at risk. Unlike the tax credit, which affects consumer demand, the loss of regulatory credit revenue is expected to translate directly into lower profitability, forcing analysts across the Street to reset earnings models. William Blair believes these combined headwinds will weigh heavily on Tesla shares, prompting the downgrade to Market Perform as the stock’s risk/reward profile deteriorates.

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