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Morgan Stanley’s investment banking business collapsed. There is more bad news.

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Hit the slowdown in market activity

Morgan Stanley

Investment – banking in the third quarter, which contributed to the group’s third-quarter revenue shortfall.

Meanwhile, the financial services giant earned less from lending amid a high interest rate environment than Wall Street had hoped.

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Analysts love these energy stocks – and give an upside of over 60%

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energy is everywhere, in everything we do; We can’t avoid it. The wide spread of the sector is one of the main factors that attract investors to it. After all, energy companies will always be able to find customers for their products, and they will never lack in sales. Energy companies are also seen as a hedge against inflation.

The energy sector is up this year, with the S&P 500 energy index up 61% year-to-date. So the question for investors is, do energy stocks have more room to run? According to some Wall Street professionals, the answer to that is “yes.”

to open TipRanks databaseWe’ve identified two energy stocks that have recently gained a lot of analyst love. These stocks have earned Strong Buy ratings from Wall Street pros, and at least one of them could show a better than 60% rally in the coming year. Let’s take a deep dive, and find out why these two street power companies are so impressive.

Denbury Corporation (den)

First up, Denbury, is both a hydrocarbon extraction company and a clean energy company – proving convincingly that one company can fill both of those areas. Initially, Denbury is focusing on tertiary recovery, or enhanced oil recovery, in its major production fields; Second, the company is a leader in carbon capture, utilization and storage technologies. Denbury uses carbon capture technology to build up reserves of carbon dioxide, which can be used in enhanced oil recovery processes. In short, the company uses its carbon reserves by pumping them into the ground to push recoverable oil.

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All of this adds up to both an important oil process and an important carbon capture system. So far this year, Denbury is producing about 47,500 barrels of oil equivalent per day, of which 97% or more is petroleum. The oil is extracted using conventional and enhanced enhanced oil recovery (EOR) technology; The latter, which accounts for 28% of the company’s production, pumps nearly 4 million tons of industrial carbon dioxide annually into oil wells. Denbury is a global leader in enhanced oil recovery, and plans to expand its Cedar Creed Anticline field with new production to come online during the second half of 23.

In the recently reported third quarter of this year, revenue was up 28% year-over-year to $439.49 million, while Denbury showed net income of $250 million, up significantly from the $82 million recorded in the third quarter of 21. On a per-share basis, non-GAAP earnings per share of $1.90 posted a year-over-year jump of 74 cents. These gains reflect increases in oil prices, and increased demand for carbon capture and sequestration technologies. Both the higher and lower numbers exceeded the Street’s expectations.

Stifel analyst Nate Pendleton He likes what he sees in Danbury. Specifically, he sees this company as an energy company for the future. He writes, “Denbury embodies the energy transition. Not only is the company an oil and gas producer that uses carbon dioxide to produce hydrocarbons today, but Denbury is also developing carbon capture and storage (CCS) projects along the Gulf Coast. The company’s management team has unparalleled experience in Introducing successful CO2-EOR projects over the past two decades.”

“Looking to the future, the department is leveraging its CO2 handling and subterranean expertise to build a network of integrated CCUS solutions, which provides investors with a differentiated investment opportunity,” added Pendleton.

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All of the above combined with a compelling review prompted Pendleton to rate DEN a Buy. Moreover, the analyst’s price target of $144 indicates that the stock has room for a solid 64% rally over the next year. (To watch Pendleton’s record, click here)

Wall Street generally agrees with Stifel’s outlook for this stock — all five recent analyst ratings are positive, for a unanimous consensus of a Strong Buy rating. With an average price target of $118.80 and a current trading price of $87.61, the shares have an average upside potential of approximately 36% on a one-year time horizon. (See the DEN stock forecast on TipRanks)

Vestra Energy (VST)

The second stock we’ll look at is Texas-based Vistra Energy, a utility company that’s in the electric business. Vistra’s services include power generation, transmission and distribution, and the company has reported steady annual gains in the top line over the past year.

The latest quarterly report shows the story. Vestra generated $5.15 billion in revenue, up from $2.99 ​​billion in the year-ago quarter — for a gain of 72%. In net income, the company reported a total of $678 million, of which $667 million is listed as net income from ongoing operations. Earnings per share for the quarter came in at $1.79, a dramatic increase from last year’s quarter of 1 cent.

Of interest to investors, Vestra reported $3.44 billion in total liquidity at the end of Q3 ’22. This total included $535 million in cash assets, with the remainder made up of available credit facilities. The company has built up its liquid assets even as it pursues an active program of capital return to shareholders. As of November 1 of this year, Vistra had spent $2.05 billion on share repurchases, which is 63% of the $3.25 billion repurchase authorization expected to be used by the end of next year. The company also pays a regular dividend, which was declared for the fourth quarter of ’22 at 19.3 cents per common share. The dividend has been raised in each of the past four quarters. At its current rate, it yields 3.15% above average.

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In his coverage of Vestra for Wolfe Research Analyst Steve Fleischman He took an optimistic view, writing: “We were concerned that expectations had risen, but VST has cleared the roadblock from our view. The year is on quite the right track, and despite a big commodity correction from the summer highs — VST still issues 2023 EBITDA guidance above The consensus is at the higher end of its soft range 2024-2025 ranges remain intact and the decision to hedge aggressively seems smart.”

Given this situation, Fleischmann gives VST shares an outperformance (i.e. Buy) rating, and his $32 price target implies a one-year upside potential of roughly 35%. (To watch Fleischmann’s track record, click here)

The bulls are definitely vying for Vestra, which has a unanimous Strong Buy rating based on 5 recent analyst reviews, all of which are positive. The stock is priced at $23.79 and the average price target of $31.40 suggests an increase of approximately 32% in the next 12 months. (See VST stock predictions on TipRanks)

To find good ideas for energy stocks trading at attractive valuations, visit TipRanks’ Best stocks to buya newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.


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EXCLUSIVE – India has ordered from sanctioned Russia parts for key sectors

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© Reuters. Russian President Vladimir Putin chairs a meeting with members of the Security Council at the Novo-Ogaryovo residence outside Moscow, Russia on November 25, 2022. Sputnik/Alexander Shcherbak/Pool via Reuters

Written by Aditi Shah, Aftab Ahmed and Gleb Stolyarov

NEW DELHI (Reuters) – Moscow has sent India a list of more than 500 products for possible delivery, including parts for cars, planes and trains, as sanctions strain Russia’s ability to keep vital industries going, four sources familiar with the matter said.

The list, a copy of which was seen by Reuters in New Delhi, is provisional and it is not clear how many items will eventually be exported and in what quantity, but an Indian government source said the request was unusual in its scope.

The source said that India is keen to boost trade in this way, at a time when it is trying to narrow the ballooning trade deficit with Russia. Some companies have expressed concern, however, that they may be caught in breach of Western sanctions.

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An industry source in Moscow, who asked not to be named due to the sensitivity of the issue, said the Russian Ministry of Industry and Trade has asked large companies to provide them with lists of the raw materials and equipment they need.

The source added that further discussion would be required to agree on specifications and sizes and that awareness was not limited to India.

Russia’s Industry and Trade Ministry, India’s foreign and trade ministries and the prime minister’s office did not immediately respond to requests for comment.

Two Indian sources said the Russian requests were made weeks before Indian Foreign Minister Subrahmanam Jaishankar’s visit to Moscow starting on November 7. It was not immediately clear what New Delhi conveyed to Russia during the visit.

Prime Minister Narendra Modi’s government has not joined Western countries in publicly criticizing Moscow for the war in Ukraine, and has sharply increased purchases of Russian oil that has mitigated some of the effects of sanctions.

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During the Moscow visit, Jaishankar said that India needs to increase exports to Russia to balance the bilateral trade which is now tilting towards Russia.

He was accompanied on the visit by senior officials in charge of agriculture, oil, ports, shipping, finance, chemicals, fertilizers and trade – which he said showed the importance of relations with Russia.

Russia’s struggles

Western sanctions have hampered the supply of some important products to Russia.

Airlines face an acute shortage of spare parts because almost all planes are made abroad. There is demand for auto parts as well, with global automakers leaving the market.

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A source in the Russian auto sales industry said that the Ministry of Commerce has sent a list of required auto parts to the relevant ministries and state agencies in other countries, including India.

The list of items from Russia, which runs to nearly 14 pages, includes car engine parts such as pistons, oil pumps and ignition coils. Bumpers, seat belts and infotainment systems are also in demand.

For the planes and helicopters, Russia ordered 41 items including landing gear components, fuel systems, communications systems, fire extinguishing systems, life jackets and aircraft tires.

The list also included raw materials for the production of paper, paper bags, consumer packaging, and materials and equipment for the production of textiles, including yarns and dyes, according to the document seen by Reuters.

Russian metal producers, such as the nickel and palladium giant, said Western sanctions and self-punishment by some suppliers made it difficult for industrial companies to obtain imported equipment, parts, materials and technologies in 2022, challenging their development programmes.

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The list includes nearly 200 mining items.

Russia has been the largest supplier of military equipment to India for decades and is the fourth largest market for Indian pharmaceutical products.

India’s first government source said that with Russian oil purchases soaring and coal and fertilizer shipments strong, India is looking for ways to rebalance trade.

India’s growing trade with Russia https://graphics.reuters.com/INDIA-RUSSIA/zgpobmlbdvd/chart.png

India’s imports from Russia increased fivefold to $29 billion between February 24 and November 20, compared to $6 billion in the same period last year. Meanwhile, the source said, exports fell to $1.9 billion from $2.4 billion.

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India hopes to boost its exports to nearly $10 billion over the coming months with the list of Russian orders, according to a government source.

But some Indian companies are reluctant to export to Russia due to fears of sanctions by the West, lack of clarity on payments and challenges in securing insurance.

“There is hesitation among exporters … especially with regard to sanctionable items,” said Ajay Sahi, director general of the Federation of Indian Export Organizations (FIEO), a body backed by India’s Ministry of Commerce.

Sahi, who is familiar with Russia’s request, said that even small and medium exporters who could meet some requests and had previously exported to Iran after Western sanctions were not enthusiastic.

Major Indian lenders are also reluctant to process direct rupee trade transactions with Russia, months after the mechanism was put in place, for fear of exposure to sanctions.

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India’s imports from Russia hit an all-time high https://graphics.reuters.com/INDIA-RUSSIA/lgvdkwgkrpo/chart.png

India’s exports to Russia decline https://graphics.reuters.com/INDIA-RUSSIA/gkplwgkxdvb/chart.png

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Twitter is too catching on to fail

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Twitter’s finances are bleak, but Elon Musk would rather make it a financial hole than let it close

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