Investing.com — Bernstein analysts upgraded Netflix (NASDAQ:NFLX) to Outperform from Market-Perform, raising the price target to $1,200 from $975, citing sustained subscriber growth and improving margins.

Despite its recent rally, Bernstein insists, “it is expensive only if you believe in consensus EPS of $30 for 2026,” adding that Netflix’s performance continues to exceed expectations.

Subscriber growth remains a key driver for Netflix, with the company achieving a 13% CAGR over the past five years and 16% YoY growth in 2024. 

Bernstein projects another year of double-digit growth, forecasting Netflix’s subscriber base to exceed 330 million by 2025. International markets, which remain underpenetrated, offer significant upside, especially with the success of Netflix’s ad-supported tier and regional content strategies.

The report also highlights Netflix’s Average Revenue per Member (ARM). While FX headwinds and discounted CPM rates for its ad-supported tier have diluted ARM growth, Bernstein anticipates improvement, particularly following upcoming price hikes in the U.S. 

The firm believes better advertising market recovery or a faster shift from linear dollars to streaming could further boost revenue.

Netflix’s margins are considered another standout. Bernstein notes a 35% improvement in content efficiency, with revenue per dollar spent on content rising from 1.7 to 2.3 between 2021 and 2024. 

Investments in local-language and licensed content, particularly in regions like Korea, have driven global engagement. Additionally, the firm says operational leverage has reduced SG&A expenses as a percentage of revenue, with cost efficiencies expected to continue.

Bernstein concludes that while Netflix faces open questions about long-term growth in areas like sports and gaming, its current trajectory supports the upgrade. “There are plenty of eyeballs left to entertain,” they added, reinforcing confidence in the stock’s outlook.

Investing.com — Magna International Inc (TSX:MG) got an upgrade to “Outperform” from “Sector Perform” at RBC Capital Markets given an improved U.S. macroeconomic conditions, better dealer inventories, and a likely rebound in electric vehicle demand in 2025.

RBC raised its price target for the Canadian auto parts manufacturer to $52 from $41.

A stronger December U.S. dealer inventories and positive January sales trends, indicating late-2024 demand may not have been merely an election-driven spike, RBC says. Improved global auto production forecasts also support the view of a healthier production environment.

2025 could be a recovery year for EVs in the U.S. and Europe, RBC noted, adding that Magna’s anticipated guidance for 2025 could exceed consensus expectations, driven by easier year-over-year comparisons and continued customer recoveries.

The brokerage anticipates margin improvements in key business segments, including body exteriors and structures and complete vehicles.

RBC projects 8% EBIT growth in 2025, supported by a better global production outlook and operational recovery.

Investing.com — France is advocating for a significant revision of European regulations, particularly those related to Environmental, Social, and Governance (ESG) rules. This comes as Europe grapples with its competitiveness amid extensive deregulation in the United States, led by President Donald Trump.

The French government has proposed a “massive regulatory pause,” according to a 22-page document viewed by Bloomberg. The document, dated January 20, suggests that recent legislation needs to be reassessed and modified. The current laws have been deemed “ill adapted” to the new environment of heightened international competition and the uncooperative policies of major global rivals.

This call for reworking comes as Europe is striving to regain its competitive edge in the global market, particularly in the face of sweeping deregulation across the Atlantic. The French government’s document highlights the need for a reassessment of the current regulations and the potential for adjustments to better suit the current international business landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com — Satellite operator SES SA has taken steps to bolster its bonds, which have recently been under pressure due to increasing competition, notably from Elon Musk’s Starlink. This move has led to a notable recovery in its debt.

The Luxembourg-based company has successfully completed a buyback of its perpetual bonds worth €625 million ($661 million), purchasing €100 million ($105 million) worth. The bonds saw a significant rise, increasing by as much as 4 cents on the euro to reach 92 cents on Friday. This surge has helped recover a large portion of the substantial losses they suffered earlier in the month.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com — SAIC Motor Corp., the Chinese collaborator of General Motors Co (NYSE:GM)., has announced that its preliminary profit for 2024 could see a drop as extreme as 90%. This drastic decline is attributed to a writedown of the American automaker’s joint venture in China, coupled with an intense price war.

The corporation’s net income for the year ending on December 31, 2024, could range between 1.5 billion yuan ($207 million) and 1.9 billion yuan. This represents a decrease of 87% to 90% compared to the income of 2023, according to SAIC’s exchange filing on Friday.

When excluding non-recurring gains, the company’s financial situation appears even more dire. Without these one-time boosts, SAIC Motor Corp. would have plunged into a deficit, facing a potential loss of up to 6 billion yuan.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com — Moderna , Inc. (NASDAQ:MRNA) today confirmed that it has won a tender to supply its mRNA COVID-19 vaccine in the European Union (EU), Norway, and North Macedonia. The agreement, valid for up to four years, allows 17 countries to access Moderna’s vaccine.

Chantal Friebertshäuser, Senior Vice President, General Manager – Europe & Middle East, Moderna, stated that the agreement would enable Moderna to bolster national COVID-19 vaccination drives across the participating nations. She emphasized the importance of diverse supply sources and the availability of various vaccine formats like prefilled syringes to improve vaccination rates and campaign efficiency, ultimately reinforcing health security.

The agreement permits Moderna to supply its COVID-19 vaccine in various formats, including prefilled syringes. This format is favored by healthcare providers as it can reduce the risk of administration mistakes and save time, potentially enhancing the efficiency of vaccination campaigns.

In September 2024, the European Commission (EC) authorized the marketing of an updated version of Moderna’s COVID-19 mRNA vaccine Spikevax. This new formulation targets the SARS-CoV-2 variant JN.1 and is designed for active immunization to prevent COVID-19 in individuals aged six months and older.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

By Divya Chowdhury and Hadeel Al Sayegh

DAVOS, Switzerland (Reuters) – Investcorp could consider a public listing in the next three to five years, its vice chairman said on Friday, as the Middle East’s biggest alternative investment firm targets a doubling of its assets under management to $100 billion.

Rishi Kapoor, who is also Investcorp’s chief investment officer, told the Reuters Global Markets Forum that it could consider London or New York as a listing venue.

There were “multiple paths” open to Investcorp, which floated its investment vehicle as a separate company on the Abu Dhabi stock exchange in 2023, Kapoor said on the sidelines of the World Economic Forum’s annual meeting in Davos, Switzerland.

“Three to five years is appropriate for us … to build that scale. I think that puts us in a good spot … to seek an opportunity to provide liquidity or value crystallization to our shareholders,” he added.

Investcorp, which was founded in 1982 in Bahrain, currently manages assets worth $55 billion. It is best known for listing luxury goods brands such as Gucci and Tiffany & Co (NYSE:TIF), but it has branched out into other areas, such as private credit.

The alternative investment industry saw a flurry of deals last year as giants such as BlackRock (NYSE:BLK), General Atlantic and TPG sought acquisitions to grow and add new asset classes to their business.

In the Middle East, the alternative investment business of National Bank of Kuwait was acquired by global asset manager Janus Henderson.

401(k) NEXT?

Global private equity has so far tapped into high-net worth individuals and institutional investors, but they are yet to attract investments from the pool of 401(k) retirement savings of U.S. workers, estimated at around $12 trillion.

The Financial Times this month reported that the industry planned to lobby the new Trump administration to allow 401(k) plans to include alternative investments and classify private equity as professionally managed funds.

Kapoor said Investcorp could seek to participate either directly or in partnership with others, should the initiatives be allowed.

“There is a natural progression towards democratization of private market assets … and the next natural evolution for that would be for it to be an integral part of that 401(k) system,” he added.

Unlike public markets, alternative assets are illiquid and would need to be prudently allocated to manage risk, both from a volatility and liquidity perspective.

“So it won’t be a big number, but when you’re taking a small percentage of a very large number, (it’s a) large dollar figure,” Kapoor said.

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Investing.com — European equities are off to their second-best start in 15 years, driven by gains in mega caps and cyclicals, according to Barclays (LON:BARC) analysts. 

Stocks like SAP, ASML (AS:ASML), and LVMH have accounted for more than half of the SX5E’s year-to-date rise, with the region benefiting from stabilizing interest rates, promising early Q4 earnings, and U.S. President Donald Trump holding off on tariffs—for now.

“YTD outperformance is a mere reversal of last year’s record underperformance,” Barclays said, emphasizing that Europe’s rally has so far been concentrated among a few large-cap names. 

Barclays explains that positive developments such as a ceasefire in Ukraine, Germany’s pro-growth policy shift, and the approval of France’s budget could provide further momentum for the region’s catch-up trade with the U.S.

Despite the gains, the bank’s analysts note skepticism among global investors about Europe’s structural growth potential. 

“Feedback from our global clients is that not many have reallocated to, or deployed fresh money into, Europe,” the note said. 

Barclays believes the hesitancy stems from Europe’s “lack of self-help” and over-reliance on global trade, which makes its economic outlook appear less compelling compared to the U.S.

While Europe offers a low bar for positive surprises and some attractive opportunities, analysts underscore that “U.S. exceptionalism remains the playbook for most.” 

With a more dynamic economy and structural growth drivers, the U.S. continues to dominate global equity portfolios, leaving Europe as a secondary consideration for many investors.

Meanwhile, Barclays believes “PMIs and Big Tech earnings will matter for the next leg of the Europe’s catch-up trade.”

Investing.com — According to Fitch Ratings, the world’s leading reinsurers are expected to weather the financial impact from their exposure to the Los Angeles fires without significant damage to their finances. The ratings agency stated in a report that the consequences for earnings and capital are not likely to be substantial.

The fires, which have been devastating the second-largest city in the United States since the start of the year, are projected to result in insured losses ranging from $25 billion to $45 billion. This estimate is based on industry figures cited by Fitch. If the losses reach $35 billion, Munich Re, Hannover Re (OTC:HVRRY), Swiss Re (OTC:SSREY) and Scor (EPA:SCOR) SE, some of the world’s largest reinsurers, would face a collective impact amounting to 30% of their combined budgets for natural catastrophes, according to the report from Fitch Ratings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com — Larry Fink, the CEO of BlackRock (NYSE:BLK), has suggested that it might be time to reinvest in Europe, citing an overabundance of pessimism about the region. His comments were made during the World Economic Forum’s annual meeting on Friday.

The Euro zone has seen a modest return to growth at the start of the new year, according to a survey released on the same day. This growth is attributed to stable services activity in January and a reduction in the long-standing downturn in manufacturing.

Fink voiced his views during a panel discussion on the global economic outlook in Davos. He stated that there was “too much pessimism on Europe.” His belief is that it might be the right time to start investing again in Europe, although he also acknowledged that there was still progress to be made, particularly in areas such as the capital markets union.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.