Following a follow-up with management, Citi said Western Digital has demand visibility through 2030–2031, while near-term growth is primarily constrained by supply. The transition to higher-capacity products is expected to increase capacity shipments, but also brings capital expenditure and near-term cost pressures.
After the equipment sector pulled back approximately 10% in a week, Citi turned its attention to supply constraints: AI demand remains strong, but parts shortages could limit shipments. Combining 2028 equipment spending scenarios with historical trough valuations, the bank estimates that the big three have approximately 10% and 30% of downside remaining under its base and bearish scenarios, respectively.
New product launches and expansion among local Chinese customers support growth above the industry, but higher electronic component prices, advance inventory purchases and warranty spending weigh on earnings and cash flow expectations. JPMorgan maintains its Overweight rating and cuts its year-end 2027 price target to 135 dollars from 145 dollars.
Fervo’s first 33MW unit is connected to the grid and generating revenue, as geothermal moves from technology demonstration to commercial operation. Bernstein sees drilling cost reductions and long-term data-center contracts jointly opening the market, but scaling depends on sustained well productivity, costs and the ability to replicate projects; supply-chain benefits will also arrive with a lag.
Bernstein expects high freight rates to prompt Maersk to raise its guidance again with its third-quarter results, but container ship orders and the resumption of Suez transits are adding capacity together; air freight benefits from surcharges and demand growth, while US surface transport is driven mainly by supply contraction.
High copper prices are encouraging the recovery of old copper scrap. Bernstein estimates that this source of supply could increase by about 500 thousand tonnes in 2026, equivalent to the output of several new mining projects. Combined with stockpiling driven by tariff concerns and inventory accumulation, this makes the bank more bearish on copper prices in the short term, although it retains its long-term bullish view.
Bernstein believes the scale of the talks over 80 thousand towers moves SpaceX’s wireless ambitions beyond spectrum holdings toward a nationwide terrestrial network. The competitive impact may take years to emerge, but competition for spectrum in 2027–2028 and pressure on sector valuations could arrive sooner.
Third-quarter adjusted earnings per share exceeded consensus by 1.7%. Core operating efficiency improved markedly, but intermodal volumes rose while pricing was weak, and fuel weighed on the operating ratio. Bernstein believes the 2027 earnings consensus is achievable; further upward revisions depend on pricing catching up and fuel trends.
Paid subscriptions and gross margin were slightly above company guidance, but expenses continued to grow faster than revenue, and cash flow also fell short of Bernstein’s expectations. After improved fourth-quarter profit guidance, the research focus has shifted to whether marketing, cloud and AI spending can return to normal in 2027.
Michelin’s third-quarter volumes fell below consensus, while a tariff refund supports its full-year profit growth guidance. Bernstein cut its 2027 earnings forecast and price target but remains positive on a medium-term recovery. The ability to pass higher raw material costs on to customers is a key condition.
Gucci’s comparable directly operated retail sales fell 9% in the third quarter, and Kering withdrew its previous outlook for a return to growth by year-end. New products remain a lever for improvement in the fourth quarter, but store closures and cost controls have become important supports for profit recovery; Bernstein also cut its earnings forecasts and valuation multiple.
Leather goods revenue maintained double-digit growth in the third quarter, but weaker Chinese footfall weighed on accessories, footwear and watches. Bernstein believes a fourth-quarter improvement will not be enough to reverse pressure on the brand and has lowered its valuation multiple; its Outperform rating rests on the company's self-help measures in 2027.
Nasdaq’s third-quarter adjusted earnings per share were $1.04, slightly above market consensus. Revenue in all three business segments exceeded expectations, though performance varied within them. Deutsche Bank maintains its Buy rating and $116 price target, with the sustainability of fintech growth and expense control in focus.
Deutsche Bank’s review of Microsoft’s fiscal 2026 proxy statement found that growth in Azure and other cloud services exceeded the internal target by 5.7 percentage points, while revenue and operating income also surpassed their targets. Performance across the business was uneven, however, with growth slowing in other cloud businesses and Xbox revenue declining.
Deutsche Bank reviews Micron’s technology symposium: The company has chosen to advance DRAM along the 6F² path, emphasizes the role of hybrid bonding in HBM bandwidth, and is extending its AI opportunity to low-power memory and SSDs. As the roadmap broadens, differences in customer demand and the timing of the NAND ramp in the second half of 2027 will determine the pace of product development.
Japan’s new core CPI accelerated by 0.5 percentage points year on year in September from August, coming in slightly above market consensus and in line with Goldman Sachs’ forecast. A long holiday contributed to higher accommodation and outbound travel prices, while airfares, some durable goods and dining also added upward pressure. Energy inflation was unchanged, while lower fresh food prices limited the increase in headline inflation.
Goldman Sachs believes large corporate-led acquisitions are pushing up financing demand. Cash-and-stock payments are mildly favorable to creditors, but dollar M&A bond issuance is already high and euro supply is set to rise from a low base. Despite expectations of tighter spreads by year-end, the risk of near-term widening still predominates.
Revenue and profit both exceeded expectations, and the company raised its full-year guidance; however, stockouts, freight and packaging costs are squeezing fourth-quarter profit margins. Goldman Sachs raised its earnings forecasts and maintained its buy rating while cutting its price target from $90 to $85.
Subscriber growth and slower spending support margin improvement. Goldman Sachs raised its price target from $645 to $700, but its advertising forecasts were cut and third-quarter cash flow also fell short of expectations.
Prada’s core brand continues to grow while Miu Miu remains in decline. Goldman Sachs expects both brands to keep gaining share; currency effects and Versace weigh on margins, leading it to raise its 2026 revenue forecast but lower its operating profit forecast.
