Stocks in Focus
In August, the US economy added 142,000 nonfarm payroll jobs, falling short of the 165,000 jobs expected by economists. The unemployment rate decreased to 4.2% from 4.3% in July. Job additions in August were an improvement over the revised 89,000 added in July. However, revisions to previous labor reports revealed that the economy had added 86,000 fewer jobs than initially reported for June and July.
Here are the Stocks Currently in Focus:
Brookfield Asset Management (BAM:CA) (BAM):
Brookfield Asset Management is a major asset management firm traded on the Toronto Stock Exchange (TSX). The company has a market capitalization of approximately CAD 22.89 billion. TD Securities has just reiterated a “Buy” rating to Brookfield Asset Management’s stock, indicating a positive outlook. The analyst maintained the 12 month target forecast of CAD 67.50 per share.
Broadcom (AVGO):
Broadcom Inc. forecasted fourth-quarter revenue slightly below Wall Street expectations due to weak spending in its broadband segment, despite a surge in orders for AI chips. The company anticipates revenue of about $14 billion, short of the $14.04 billion analysts predicted. Broadband revenue dropped 49%, and non-AI networking revenue fell 41%, though AI segments showed strong performance. Broadcom reported a $1.88 billion loss compared to a $3.30 billion profit the previous year but increased its annual AI revenue forecast to $12 billion from $11 billion, reflecting strong demand for its AI-related products.
Salesforce (CRM):
Salesforce Inc. announced plans to acquire Own Company, a data protection and management solutions provider, for $1.9 billion in cash. The acquisition aims to boost Salesforce’s data security and privacy offerings. The company expects the deal to contribute positively to free cash flow starting in the second year after its anticipated completion in Q4 of fiscal 2025. Salesforce’s fiscal year 2025 forecast and capital return program will remain unaffected by the acquisition.
Toyota Motor Corp. (TM)
Toyota Motor Corp has reduced its 2026 electric vehicle production target by a third, from 1.5 million to 1 million units, amid declining EV sales momentum. Despite this cut, Toyota maintains its goal to produce 1.5 million EVs annually by 2026 and 3.5 million by 2030, describing these figures as benchmarks rather than strict targets. Additionally, Japan will offer up to $2.4 billion in subsidies to boost electric vehicle battery production, supporting Toyota and other major companies to strengthen the battery supply chain.
Robinhood Markets (HOOD)
Barclays upgraded Robinhood’s stock rating from “Equal Weight” to “Overweight” (or “Buy”), reflecting a more favorable outlook on the company’s performance. Along with the upgrade, Barclays raised its target price for Robinhood’s shares from $18 to $20. This change suggests that Barclays expects Robinhood’s stock to outperform its previous valuation and sees potential for higher returns. The upgrade likely reflects improved confidence in Robinhood’s business prospects or recent positive developments affecting the company.
