Company Notes


July 16, 2024

WDC: Valuation Should Help with FQ4 Expectations Game

By Steven Fox

We reiterate our Outperform and $100 target on the shares of Western Digital (WDC; $77.22) ahead of its FQ4 (Jun) results and outlook, which are scheduled for Wednesday, July 31st (after market). Most importantly, we…

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July 16, 2024

STX: Trends Should Look Fresh, Albeit Against Stale Consensus

By Steven Fox

We think underlying fundamentals behind Seagate’s (STX; $109.10; E/W) positive FQ4 (Jun) guidance update last month should comfortably support our and Street’s F2025E (Jun) forecasts, especially when it comes to gross margins, when it reports…

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July 8, 2024

LCID: Some Healthy Delivery Upside

By Steven Fox

This morning, Lucid Group (LCID; $3.03; E/W) announced it delivered 2,394 vehicles (+22% QoQ and +71% YoY), while producing 2,110 vehicles (+22% QoQ and -3% YoY) during Q2. By comparison, our model called for Q2…

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July 8, 2024

HYZN: Focusing Further on North America

By Steven Fox

This morning, Hyzon Motors (HYZN; $0.34) announced it plans to cease operations in Australia and the Netherlands, while noting it remains focused on “core” North American Class 8 and refuse fuel cell electric vehicle (FCEV)…

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July 8, 2024

GLW: Raises Q2E Guide on Big AI-Related Momentum

By Steven Fox

We raise our above consensus 2024/2025E EPS for Corning (GLW; $38.44; O/P) from $2.00/2.33 to $2.07/2.40 on the back of this morning’s positive Q2 guidance update. By comparison, we note that the Street was only…

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July 2, 2024

MBLY: Some More Favorable Roadmap Data Points

By Steven Fox

The shares of Mobileye (MBLY; $27.89; O/P) have again dramatically reversed course in recent weeks and are -14% since 6/10 (vs. +3% for the S&P 500). We think the Street remains concerned with MBLY’s competitive…

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July 2, 2024

NXT: A Sunnier Story Than Street Appreciates

By Steven Fox

We believe the 24% decline in the shares of Nextracker (NXT; $46.12; O/P) since mid-June presents a major buying opportunity for investors. This should especially prove the case at 14X our C2025E EPS and 9X…

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June 27, 2024

MU: More Proof Points of Robust EPS Power

By Steven Fox

We raise our F2024/F2025E (Aug) EPS for Micron (MU; $142.36; O/P) from $0.90/$8.45 to a more than reasonable $1.20/$8.75, especially when it comes to pricing power and sales mix, after the company produced a solid…

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June 26, 2024

MU: First Look at FQ3 (May) Results and Outlook

By Steven Fox

Micron Technology (MU; $142.36; O/P) reported FQ3 (May) non-GAAP EPS of $0.62, which beat our consensus matching $0.48 on higher-than-expected sales ($6,811mm vs. our $6,625mm and consensus of $6,669mm). Recall, Micron called for FQ3 sales…

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June 26, 2024

APTV: Fundamental Concerns Reach New Heights

By Steven Fox

The shares of Aptiv (APTV; $66.02; O/P) have been extremely volatile YTD, including big swings between the mid-$80’s and a bottom ~$70, which was firmly punctured today on questions about the company’s software veracity (10-15%…

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June 25, 2024

UBER: Expanding Its Efforts on Multiple Fronts

By Steven Fox

We think a wide range of recent news flow out of Uber Technologies (UBER; $70.35; O/P) generally supports the idea that the company can continue to generate healthy operating leverage, led by its Mobility offering…

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June 25, 2024

UBER: Shows Further Commitment to Autonomous Tech

By Steven Fox

This morning, Aurora Innovation (AUR; $2.48; NR) and Uber Technologies’ (UBER; $71.79; O/P) Freight division announced an expansion of its three-year commercial pilot with the launch of Premier Autonomy, which is a newly formed program…

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June 25, 2024

CART: Recent News to Consider

By Steven Fox

We think recent news flow out of Maplebear, doing business as Instacart (CART; $32.00; E/W), provides further support for longer term operating leverage available to the company from its high-margin advertising business, albeit in the…

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June 25, 2024

DASH: More Moves on Alcohol Front

By Steven Fox

DoorDash (DASH; $110.70; E/W) recently disclosed it expanded on-demand alcohol delivery services with the addition of several grocers and liquor stores, including brands under the Ahold Delhaize banner, as it also introduced a new suite…

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June 25, 2024

HYZN: Considering More Strategic Options

By Steven Fox

Last night, Hyzon Motors (HYZN; $0.36) announced it has started realigning the company’s strategic priorities to better focus on “core” North American Class 8 and refuse fuel cell electric vehicle (FCEV) platforms after a comprehensive…

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