Merchants Bancorp, First Financial Bankshares, First Commonwealth Financial, F.N.B. Corporation, and 1st Source Shares Skyrocket, What You Need To Know

Investing.com -- Oppenheimer downgraded T-Mobile US to Perform, warning that the wireless industry is heading into a period of slower growth and heavier competition that could pressure margins and curb the company’s long run of market share gains.

The brokerage said T-Mobile, which has outperformed rivals for years, is now more exposed as subscriber growth cools and competitors step up promotions.

"We think the company will have a difficult time beating subscriber and FCF estimates after a decade of outsized share gains and margin expansion," analysts said. 

It cited Comcast’s recent broadband price cuts and Verizon’s plan to redeploy $4 bln in cost savings into richer handset deals and bundled content, moves that could drive a more aggressive price environment over the next one to two years.

Analysts said T-Mobile may need to respond by accepting slower share gains or lifting prices, steps that could weigh on valuation.

Shares already trade at a premium to peers at 16.3x earnings and 8.7x EBITDA, compared with 8.2x and 6.0x at Verizon and 11.5x and 6.3x at AT&T. The firm added that T-Mobile lacks the dividend support that peers offer if competition intensifies.

Oppenheimer also flagged rising pressure from cable operators, which have been offering free wireless lines in a bid to offset broadband losses. The firm said T-Mobile is likely the most exposed to that push.

While financial estimates were left unchanged, Oppenheimer lowered its longer term outlook for subscriber additions, expecting T-Mobile’s share of postpaid phone net adds to fall from about 38% to the mid 20s as competition bites.

"We believe that overall industry subscriber growth is set to slow and will intensify competition"

Investing.com -- Siemens Energy said on Thursday it plans to return as much as 10 billion euros to shareholders by 2028, supported by surging global demand for power-infrastructure equipment.

The plan combines up to 6 billion euros in share buybacks with the remainder distributed through dividends as the company leans into what it sees as a multiyear investment cycle in grids and gas turbines.

The announcement came at its U.S. capital markets day (CMD), where Siemens Energy detailed stronger mid-term targets after a year of sharp order growth in both gas and grid technologies.

Morgan Stanley analyst Max Yates described the buyback as a “strong message on the confidence in the balance sheet.”

Bank of America analysts said the buyback “illustrates significant free cash flow (FCF) generation.”

“We think this also addresses concerns about ENR’s capital allocation; the company is now returning the same 1/3 of available cash to shareholders as peer GE Vernova.”

Shares initially jumped to their highest level since the 2020 spin-off, but later reversed to close 2.9% lower as the broader global tech sell-off dragged the stock into the red.

The decline extended into Friday, with the stock tumbling as much as 8.7% by 09:53 GMT.

Asian and European markets weakened on Friday after Wall Street’s late-session reversal a day earlier, with Nvidia sliding from early gains to finish sharply lower as fresh AI-bubble worries hit sentiment. Semiconductor names across both regions dropped on Friday, tracking the tech-led pullback.

Siemens Energy shares rocketed more than 100% this year on optimism around AI. The company has benefited from the AI build-out as data-center operators step up orders for its transformers and switchgear. Growing global power demand is also driving stronger sales of its high-margin gas turbines.

Aside from the buyback announcement, Siemens Energy’s CMD showed that its Grid backlog margins increased by 300 basis points in 2025, which Yates described as “very encouraging.”

Gas Services new equipment margins rose by 500 basis points and Gas Services aftermarket and Siemens Gamesa each added 100 basis points.

“We actually find the grid backlog margin trajectory the point that is most encouraging,” Yates wrote.

The analyst said the scale of new grid orders added in 2025 — about €21 billion, or roughly 45% of the total backlog — explains the sharp improvement in profitability.

He noted that “for these new orders to drive backlog margins up by 300bps,” the implied EBITA margins would need to be “20%+,” which he said supports confidence in the upper end of Siemens Energy’s 18–20% grid margin range for 2028.

In gas turbines, Siemens Energy raised its assessment of long-term market demand to more than 100 GW annually between 2026 and 2035, compared with about 85 GW in 2025. The company plans to lift combined-cycle gas turbine capacity to more than 30 GW by 2030, roughly 40% above its earlier assumptions.

“Clearly c30GW would allow Siemens to maintain its market share of c30%, but is dependent on the currently very strong market backdrop continuing, and the building blocks around this 100GW+ demand assumption will clearly draw some scrutiny today,” Yates noted.

Siemens Energy is also continuing to streamline its onshore wind manufacturing footprint, reducing the number of sites to four by 2026.

It reaffirmed expectations for an offshore wind market of 11–12 GW annually through 2031, a level analysts said supports delivery forecasts well into the next decade.

Investing.com -- Raymond James analysts have identified several standout stocks across various sectors that they believe offer compelling investment opportunities. These selections represent the firm’s current favorites based on growth potential, valuation, and market positioning.

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1. SentinelOne, Inc. (S) - SentinelOne tops the list of Raymond James’ analyst favorites as a new addition. The cybersecurity firm’s true value appears significantly disconnected from its public market valuation, according to analysts.

With a price target of $25, Raymond James sees significant upside potential from the current $16.16 share price. The firm’s analysts have been conducting constructive checks and anticipate solid results with conservative guidance to continue.

SentinelOne recently agreed to acquire data streaming platform Observo AI for approximately $225 million and also received a $2 million award from the Cybersecurity and Infrastructure Security Agency (CISA).

2. Meta Platforms, Inc. (META) - Raymond James has set an $825 price target for Meta, well above its current $602.01 trading price. Analysts believe Meta is positioned for improved AI/GenAI monetization in 2025, with recommendation model advancements expected to drive engagement up by mid-single to low-double digits. Meta AI’s 500+ million monthly active users could open a $10B+ search/assistant opportunity by 2026.

Meta Platforms was ordered by a Spanish court to pay €479 million to a group of publishers for breaching data protection regulations. Separately, Cantor Fitzgerald lowered its price target on the company to $720, citing guidance for accelerated operating expense growth.

3. NRG Energy, Inc. ( - With a $223 price target against a $163.21 share price, Raymond James views NRG as offering a compelling entry point following a recent 13-14% sell-off. The firm appreciates NRG’s "additionality" strategy and notes that the LS Power deal accelerates NRG’s long-term adjusted EPS CAGR from 10% to 14%.

NRG Energy completed the sale and issuance of $4.9 billion in senior notes to partially fund its acquisition of Lightning Power. Following this, Jefferies raised its price target on the company’s stock to $198.

4. Salesforce, Inc. (CRM) - Raymond James has established a $375 price target for Salesforce, currently trading at $237.03. Analysts see sustainable double-digit FCF growth at a below-group multiple, with over $20 billion remaining on a recently increased share repurchase authorization.

Salesforce has completed its acquisition of Informatica, an enterprise AI-powered cloud data management company, a move intended to strengthen its data foundation for artificial intelligence applications.

5. Cogent Biosciences, Inc. (COGT) - Analysts believe Cogent’s bezuclastinib has best-in-class potential in the systemic mastocytosis market. With pivotal data in hand and an NDA filing expected by year-end 2025, Raymond James recommends owning the stock ahead of what they anticipate will be a commercial launch that exceeds expectations.

Following positive Phase 3 trial results for its bezuclastinib drug, Cogent Biosciences received an upgrade to Buy from Stifel and significant price target increases from firms including Raymond James and Leerink Partners.

6. Coherent Corp. (COHR) - Raymond James highlights Coherent’s datacom transceivers as enabling the evolving wave of AI scale-out network builds. The firm sees expanding AI opportunities and believes the market doesn’t fully appreciate Coherent’s internal Indium Phosphide manufacturing capabilities.

In recent developments, Coherent Corp. reported first-quarter fiscal 2026 earnings and revenue that exceeded analyst expectations, prompting price target increases from firms including Needham, Stifel, and Benchmark.

7. Deckers Outdoor Corporation (DECK) - Analysts view recent concerns about growth deceleration as overdone, particularly for the HOKA brand. Raymond James sees HOKA in the early stages of long-term growth driven by new products, growing global brand awareness, and expanding distribution.

Following its second-quarter fiscal 2026 results, Deckers Outdoor saw Truist Securities and TD Cowen lower their price targets, while UBS reiterated its Buy rating on the stock.

8. Ionis Pharmaceuticals, Inc. (IONS) - Raymond James believes Ionis is transitioning well to a commercial company with strong execution. The firm cites successful launches and a pipeline with underappreciated value, including several potential data readouts over the next 12-18 months.

Ionis Pharmaceuticals received a positive opinion from a European Medicines Agency committee for its hereditary angioedema treatment, DAWNZERA, and also announced its intent to offer $700 million in convertible senior notes.

9. Shake Shack Inc. (SHAK) - Following a 25% pullback since Q2 results, Raymond James sees a compelling entry point. Positive comps in recent months and strong Q2 margin performance support the bull case for operational improvements and margin expansion.

Shake Shack reported third-quarter 2025 earnings and revenue that surpassed analyst expectations, with results showing positive traffic and an expansion in restaurant-level margin.

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

Investing.com -- UBS upgraded VAT Group AG (SIX:VACN) to”buy” from “neutral,” raising its price target to CHF380 from CHF285 after increasing its 2026-27 equity free cash flow by 4-6% and lifting its medium-term sales and margin assumptions. 

The brokerage said it now models 10% medium-term DCF sales growth, up 200 basis points, and a 34% EBITDA margin, up 100 basis points, citing higher expected sales volumes.

The upgrade follows two years in which VAT’s shares lagged the Swiss index amid muted order trends. 

UBS said it expects a positive order inflection in the first half of 2026, projecting Q2 2026 orders of about CHF300 million compared with CHF240 million in Q4 2025, an increase of more than 20%.

UBS forecasts 2026 global semiconductor wafer-fab equipment capex rising 8% year over year to a record $117 billion, with memory spending, VAT’s most relevant segment, expected to grow more than 20%. 

The brokerage cited rising DRAM and NAND prices as supportive indicators and said recent AI data-center announcements provide “granularity” to the industry outlook.

AI data centers already account for about 20% of WFE capex, a share UBS said could rise above 40% by 2030 depending on capacity expansion.

VAT’s exposure to semiconductors is significant, with UBS estimating 80% of 2025 sales coming from the sector. 

The brokerage said VAT holds an estimated 70% global market share in vacuum valves, more than 10 times its closest peer, supported by customer design wins. 

UBS also expects adjacencies, including pin lifters, advanced modules and upstream valves, to add CHF100-200 million, or 10-15% of group sales, over the next few years.

UBS forecasts VAT revenues rising 16% in 2026 and 11.5% in 2027, with EBITDA increasing to CHF398 million in 2026 from CHF318 million in 2025. 

It projects EPS of CHF9.60 in 2026, CHF10.94 in 2027, and a 2025-28 EPS CAGR of about 20%, noting that the stock trades at 32x 2026 earnings and 28x 2027 earnings, below its historical 35x average.

VAT continues to show what UBS described as “best-in-class” cash generation, with equity free cash flow at about 20% of sales and FCF ROIC above 40%. 

Its balance sheet is also forecast to strengthen, with net debt expected to shift to CHF43 million in cash in 2027 and CHF149 million in 2028, compared with CHF85 million net debt in 2025.

UBS cited China as a key risk. It estimates 35% of VAT’s revenue and 45% of earnings come from Chinese semiconductor equipment makers and noted that inventories at those customers may cover up to 12 months of valves. 

The brokerage also warned that local competitors could gain share if they match VAT’s technology.