Apple shares rose to a record high during Monday's trading session, making it the fastest-growing stock in premarket trading, after Morgan Stanley named the stock a “top pick” as the company is using its artificial intelligence (AI) push to boost device sales.
The iPhone maker unveiled Apple Intelligence last month to encourage customers to upgrade their devices to take advantage of new technologies, a move that came after Apple was seen to be lagging behind Alphabet Inc.'s (GOOG) Google and Microsoft Corp.-backed OpenAI in the AI race.
“Apple Intelligence is a clear catalyst for boosting iPhone and iPad shipments,” Morgan Stanley analysts said.
The investment bank added that Apple could sell about 500 million iPhones over the next two years. The investment bank had previously predicted that Apple would sell 230 million to 235 million iPhones per year over the next two years, and raised its price target to $273 from $216 based on its new forecast.
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The stock has an average rating of “buy” and a median price target of $217, according to data from the London Stock Exchange, and its shares have outperformed the S&P 500 index this year.
Apple shares have risen more than 26% since the beginning of the year and are up more than 8% in the last month.
Ocado raised its earnings forecast after signs of renewed demand for online deliveries and said it had significantly narrowed its losses in the last six months.
The group reported a pretax loss of 154 million pounds ($199.7 million) for the six months to June 2, compared with a loss of 290 million pounds in the same period last year.
The company grew sales to £1.54 billion in the first half of the year, led by a 21.8% increase in its online grocery business and the technology solutions that power automated warehouses for other retailers.
Ocado Retail, which is operated as a joint venture with Marks & Spencer (MKS.L), reported an 11.3 percent rise in sales and turned to an underlying profit of 20.7 million pounds from a loss of 2.5 million pounds a year earlier.
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Ocado has shifted its focus in recent years to offering B2B robotics and automation services, leading some to suggest the company may spin off its retail business to focus solely on technology.
“Surge in demand during the pandemic followed by multi-year higher food prices has created an unprecedented period for online grocery sales. Now, as the global channel shift to online retail resumes, Ocado is well positioned to capitalise on the opportunity,” said Tim Steiner, CEO of Ocado Group.
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Ocado said it raised its full-year profit and cash flow outlook.
Cartier's parent company Richemont reported a slight drop in first-quarter sales due to a slowdown in demand for luxury goods, with weaker demand in China causing overall results to fall slightly below expectations.
Richemont, which also owns brands such as Van Cleef & Arpels, said its sales in greater China fell 27% in the three months to the end of June.
The decline was partially offset by strong jewellery sales in other countries, helping overall sales increase 1% at constant exchange rates.
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“The decline reflects both weak consumer confidence and strength across a wide range of comparators, from double-digit growth in mainland China to triple-digit growth in Hong Kong and Macau compared to the same period last year,” Richemont said.
For the period ended June 30, the luxury goods group's sales were 5.27 billion euros (4.42 billion pounds, $5.74 billion), down from 5.32 billion euros in the same period last year. The result was broadly in line with analysts' expectations of 5.28 billion euros, according to a survey of forecasts compiled by Visible Alpha.
Rio Tinto (RIO.L)
Mining company Rio Tinto's London-listed shares fell after the company reported second-quarter iron ore shipments fell short of analysts' expectations.
Iron ore production from the group's Pilbara assets in Western Australia was 79.5 million tonnes, down 2% from the same period last year.
Rio said productivity gains offset ore depletions, but a train collision in mid-May that halted rail service for about six days and caused stockpiles to fill at some mines affected production and shipments in the quarter.
The company's report comes after iron ore prices recently recovered on expectations of further economic stimulus in China, following a weak first half of the year due to weak demand from China's construction sector.
“The (Chinese) government has taken additional measures to ease the massive excess inventory in the property market,” Lio said on Tuesday.
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