Apple shares rose to a record high during Monday’s trading session and were the number one trending ticker in pre-market trading after Morgan Stanley designated the stock as a “top pick” due to the company’s artificial intelligence (AI) push to boost device sales.
The iPhone maker last month unveiled Apple Intelligence, in a bid to lure customers to upgrade their devices to be able to use the new technology. The move came as Apple was seen as lagging behind Alphabet’s (GOOG) Google and Microsoft-backed (MSFT) OpenAI in the AI race.
“Apple Intelligence is a clear catalyst to boost iPhone and iPad shipments,” Morgan Stanley analysts said.
They added that Apple could sell nearly 500 million iPhones over the next two years. The investment bank previously expected Apple to sell between 230 million and 235 million iPhones annually over the next two years and raised its price target to $273 from $216 based on the new projections.
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The stock has an average rating of “buy” with a median price target of $217, and has outperformed the S&P 500 index this year, according to London Stock Exchange data.
Apple stock has risen more than 26% year to date and over 8% in the last month.
Ocado said losses narrowed significantly in the latest six-month period, as it lifted its forecasts on signs that demand for online deliveries was picking up again.
The group reported a £154m ($199.7m) pre-tax loss for the six months to 2 June against losses of £290m a year ago.
It notched up revenues of £1.54bn for the first half, boosted by a 21.8% surge in its technology solutions business, which powers online grocery businesses and automated warehouses for other retailers.
Ocado retail — run as a joint venture with Marks & Spencer (MKS.L) — saw revenues rise 11.3%, helping the division swing to underlying earnings of £20.7m from a £2.5m loss a year earlier.
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Ocado has shifted its focus in the last few years to providing B2B robotics and automation services, with some suggesting it could spin out the retail business to focus solely on tech.
“We have come through an unprecedented period for online grocery, with multiple years of high food inflation following a surge in demand during the pandemic. The global channel shift to online has now resumed and Ocado is uniquely well-positioned to take advantage of the opportunity,” Tim Steiner, chief executive of Ocado Group, said.
Ocado said it was raising its profit and cash flow guidance for the full year.
Cartier owner Richemont reported a small drop in sales for its fiscal first quarter amid slowing demand for luxury goods, with a slump in Chinese demand pushing the overall result slightly below expectations.
Richemont, which also owns brands including Van Cleef & Arpel, said sales were down 27% in the Greater China region in the three months to the end of June.
The slump was partially offset by stronger jewellery sales in other countries, with overall sales up 1% at constant exchange rates.
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“The decline reflected both the low level of consumer confidence and the strong comparatives ranging from double-digit growth in the mainland to triple digits in Hong Kong and Macau over the prior-year period,” Richemont said.
For the period ending 30 June, the luxury-goods group booked sales of €5.27bn (£4.42bn, $5.74bn), compared with €5.32bn in the prior-year period. The result came broadly in line with analysts’ forecasts of €5.28bn, according to a poll of estimates compiled by Visible Alpha.
Rio Tinto (RIO.L)
Mining firm Rio Tinto’s London-listed shares fell after it reported second-quarter iron ore shipments below analyst estimates.
Iron ore production from the group’s Pilbara assets in Western Australia came in at 79.5 million tonnes, 2% lower than the same period.
Rio said productivity gains offset ore depletion but that production and shipping in the quarter were impacted by a train collision in mid-May, which resulted in around six days of lost rail capacity and full stockpiles at some mines.
The firm’s report comes as hopes for more stimulus in China have helped iron ore prices rebound recently after weak demand from the country’s construction sector led to a dull first half.
“The (Chinese) government has provided additional measures for the property market to destock the large inventory overhang,” Rio said on Tuesday.
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