General Motors (GM) announced that it has collaborated with Goldman Sachs and Mastercard to roll out a co-branded reward-based credit card.
The automaker said Goldman Sachs will be the issuing bank for the credit card, which is planned to be launched in September. Meanwhile, Mastercard (MA) will remain the network provider of the cards.
Chuck Thomson, GM's general manager of retail sales and marketing support said, “We chose to partner with Goldman Sachs (GS) because of their proven ability to innovate.”
Last week, GM announced that it will roll out EV delivery vehicles under its new business unit named BrightDrop. Its first product, an electric pallet called EP1, will hit the Street in early 2021. (See GM stock analysis on TipRanks)
Following the announcement, Argus analyst Bill Selesky upgraded GM stock to Buy from Hold with a target price of $56 (12.1% upside potential). Selesky expects GM to benefit from its expansion into the electric and autonomous vehicle market.
Overall, the consensus among analysts is a Strong Buy based on 13 Buys and 1 Hold. The average analyst price target of $53.50 implies upside potential of about 7.1% to current levels. GM stock has gained about 44% in one year.
From TipRanks’ Smart Score system, the stock scores a “Perfect 10”, indicating that the stock has a strong chance of beating market expectations.
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FedEx will levy a new surcharge on shipments for residential delivery by its large customers. Shares of the delivery giant closed 1.5% lower last Friday.
FedEx (FDX) said that starting Feb. 15, it will be adding a $0.30 fee per package for shippers whose weekly average volume crosses over 30,000 packages between Jan. 4 and Jan. 31. The move could help FedEx offset rising operating costs amid a surge in volumes due to the coronavirus pandemic.
FedEx said that the fees will be levied on FedEx Ground and FedEx Express domestic residential packages. It will not apply on FedEx One Rate and FedEx SmartPost packages. (See FDX stock analysis on TipRanks).
On Dec. 30, 2020, Argus Research analyst John Eade raised the stock’s price target to $305 (20.8% upside potential) from $270 and reiterated a Buy rating. In a note to investors, Eade said that the company’s balance sheet is healthy and looks good on technical basis. The analyst also believes that the Covid-19 impact on FedEx’s Express and Freight businesses has reversed and it is benefiting from continued growth in e-commerce market.
From the rest of the Street, the stock scores a cautiously optimistic outlook, with the analyst consensus of a Moderate Buy based on 15 Buys, 4 Holds and 1 Sell. The average analyst price target of $332.71 implies upside potential of about 31.7% to current levels. Shares have gained 58.7% over the past year.
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Software company Citrix Systems is in advanced talks to buy California-based collaborative work management platform provider Wrike from Vista Equity Partners for over $2 billion, Bloomberg has learnt.
According to the report, Citrix (CTXS) could announce a deal with Vista as early as this week, which would be the company’s largest acquisition to date. Furthermore, if the deal goes through, it would help Citrix to expand its collaboration software business.
Meanwhile, the deal price suggests that Vista is likely to gain significantly on its investment. Notably, Vista had acquired a majority stake in Wrike in 2018. (See CTXS stock analysis on TipRanks)
On Jan. 15, Citigroup analyst Walter Pritchard maintained a Buy rating and a price target of $205 (55.3% upside potential) on CTXS, as he expects the company to deliver strong 4Q results. However, he remains concerned about the company's 1Q guidance. Citrix is set to report its 4Q results on Jan. 21. In a note to investors, the analyst said that he expects “positive FY21 CTXS-specific dynamics.”
From the rest of the Street, the stock scores a cautiously optimistic outlook with the analyst consensus of a Moderate Buy based on 4 Buys and 3 Holds. The average analyst price target of $169 implies upside potential of about 28% to current levels. Shares have gained 16.1% in one year.
Meanwhile, the TipRanks’ stock investor sentiment tool shows that investors currently have a Negative stance on CTXS.
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SkyWest Airlines will receive $233 million from the U.S. Treasury Department to help it pay for the wages and other benefits of thousands of SkyWest Airlines employees.
SkyWest Airlines, a subsidiary of SkyWest, Inc. (SKYW), has already received half of the funds and will receive the second half next month.
$40 million will be in the form of a ten-year, low interest unsecured bond, and SkyWest will issue warrants to the U.S. Treasury Department to buy approximately 98,815 SkyWest shares at a strike price of $40.41.
Certain conditional restrictions have been placed on SkyWest, including limitations on involuntary terminations, restrictions on the payment of dividends and the repurchase of shares, as well as certain limitations on executive compensation. (See SKYW stock analysis on TipRanks)
Deutsche Bank analyst Michael Linenberg downgraded SkyWest from Buy to Hold last month but raised his price target from $39 to $45. This implies upside potential of around 8% from current levels.
Linenberg is positive about the long-term prospects of the airlines sector, despite airline stocks being around fair value valuations for 2022. Investor sentiment has been given a boost recently with positive developments around COVID-19 vaccines.
Consensus among analysts is a Moderate Buy based on 2 Buys and 1 Hold. The average price target of $51.33 suggests upside potential of around 23% over the next 12 months.
SKYW scores a 7 out of 10 on Tipranks’ Smart Score rating, indicating that it is likely to perform relatively in line with market averages.
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