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Citi (NYSE:C)’s price cuts are attracting a great deal of attention, especially given the recent $6. 4 trillion global stock market crisis.
The bank expects global GDP expansion to fall to 2. 2% in 2024 and then rise to 2. 8% in 2025 as a component of its “slow then grow” thesis for 2024; Citi predicts the United States will lead the global resurgence, even if the economy slows.
As for the stock market, Citigroup forecasts that corporate profits will increase by 4% in 2024 and 8% in 2025. The bank also suggests that the Federal Reserve will most likely end interest rate hikes and reduce them in 2024. as inflation decreases to approach 2. 5. % at the end of the year. In these circumstances, Citigroup promotes a balanced and diversified portfolio.
Even if you want to continue investing in those stocks, following Citi’s latest price cuts doesn’t hurt.
Even with new product launches and physically powerful vehicle sales, Citi cut its worth estimate on Nio (NYSE: NIO), the Chinese electric automobile maker, from $10. 40 to $8. 50, bringing up decrease profit margins leading to prospective net losses via 2026. a “buy” recommendation, as there is upside prospective if Nio overcomes those hurdles.
Nio has had a combined performance, with ongoing problems offset by moderate standards. In the third consecutive month in which it exceeded 20,000, Nio delivered 20,498 cars in July 2024, totaling 8,534 cars and 11,964 electric SUVs. This year, the company produced 107,924 cars, a growth of 44%.
Nio inventory is down 50% so far this year, even with deliveries, due to growing competition in the electric vehicle sector, especially from Chinese competition like BYD, and economic issues such as weak domestic demand in China and geopolitical problems that affect the electricity sector. vehicle sector.
Analysts rate Nio a “moderate buy” with an average price target of $6. 52 and a likely 67% upside.
Following unsatisfactory first-quarter financial reports, Citi lowered its price target on Polaris (NYSE:P II); Sales are down 20% year-over-year and profits compared to percentage have dropped significantly. Given the current difficulties in the recreational sector, Citi is wary of Polaris’ prospects.
On a positive note, Polaris honored its 70th anniversary by introducing a new collection of limited-edition snowmobiles.
Additionally, Polaris revealed its 2025 off-road vehicle lineup, featuring updates to well-known models like the RANGER, GENERAL and RZR. New colors, complex generation and improved features such as the RIDE COMMAND+ formula, which provides vehicle protection and greater connectivity, characterize those improvements. In particular, the RANGER series now offers the new Extreme Duty Ranger XD 1500, which combines the mobility of a UTV with rugged features.
Polaris is a “moderate buy” across 11 ratings, with a 1% upside outlook. However, with a 34% drop, the lack of a truly broad upside outlook reflects the fact that many analysts are looking at Citi’s inventory and overall weakness in the recreational sector. sector.
Reflecting AMC’s (NYSE: AMC) stock split, APE unit conversion and industry challenges, Citi notably lowered its AMC value forecast from $15. 50 to $4. 75.
Weak movie programming and Hollywood cause AMC to lose cash in the second quarter of 2024, with profit falling to $367 million from $488 million in the year-ago quarter.
Compared to the Nasdaq hundred and the S
Top food and beverage features on AMC have recently boosted weekend earnings as well-attended occasions like the debuts of Deadpool and Wolverine boosted revenue. By dining at the movies and attracting movie theaters, AMC hopes to generate customer-friendly spending.
Although AMC is rated a “Moderate Sell” with a 7% downside and a $4. 80 value target, the opposite is detrimental given its mythical cachet as a meme stock. This means that if you trade daily, be careful when considering AMC among Citi’s value targets.
As of the date of publication, Faizan Farooque did not hold (directly or indirectly) any position in the securities discussed in this article. The perspectives expressed in this article are those of the author, subject to InvestorPlace. com’s publication rules.
As of the date of publication, the at-fault editor did not hold (or occupy) any position in the securities discussed in this article.
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