VFC added to Conviction List as Needham upgrades SHOO and downgrades Nike

Investing.com -- Wolfe is bullish on Merck & Company Inc (NYSE:MRK) while stepping back from AbbVie Inc (NYSE:ABBV). Analysts say the market is underestimating Merck’s ability to grow beyond Keytruda and has already priced in much of AbbVie’s near- and medium-term upside.

Wolfe upgraded Merck to Outperform from Peer Perform and set a $135 price target, saying the drugmaker is approaching a new growth cycle supported by acquisitions, pipeline catalysts and a more durable outlook for its top-selling cancer drug.

Recent deals like Verona and Cidara add to Merck’s revenue base, while late-stage pipeline assets and label expansion opportunities support steady growth even as Keytruda approaches loss of exclusivity.

Wolfe now forecasts a five-year revenue CAGR of about 4.2%, above the Street’s roughly 2.4%, which it said supports the case for near-term multiple expansion.

A central pillar of the call is Keytruda. Wolfe said investors are mis-modeling the drug’s patent cliff, noting exclusivity now extends to late 2029 and uptake of the subcutaneous formulation, Qlex, could soften the decline.

Wolfe estimates Keytruda sales of about $29.5 billion in 2030, around $6 billion above consensus, driven by conversion of a meaningful share of intravenous use to the newer format.

Wolfe also flagged underappreciated potential from Cidara’s CD388, a long-acting flu antiviral, and pointed to a dense clinical calendar through 2026 that could reinforce Merck’s growth narrative.

Wolfe downgraded AbbVie to Peer Perform, saying strong performance over the past two years has left limited room for further upside. The firm said expectations for Skyrizi and Rinvoq are already embedded in forecasts, with the Street modeling combined sales of more than $30 billion by 2026.

Wolfe cautioned that AbbVie’s pricing and contracting advantages in immunology could face pressure as key payer agreements roll off in 2026 and competition intensifies, even as it acknowledged the company’s pipeline remains attractive longer term.

Investing.com -- As the precious metals rally extends its impressive run, mining stocks continue to attract investor attention. Bernstein has identified three standout performers positioned to capitalize on current market conditions, despite some analysts warning of potentially stretched valuations in what might be a "peak-on-peak" scenario.

The metals and mining sector demonstrated robust performance in 2025, with precious and base metals posting substantial gains while bulk commodities remained flat or slightly positive. This positive momentum has carried all mining equities under Bernstein’s coverage into positive territory, though valuations now appear elevated compared to historical averages.

Here are the top mining stocks according to Bernstein’s analysis:

Rio Tinto Group (NYSE:RIO): Earning an Outperform rating, Rio Tinto stands out for its stability and quality as most base metals approach their cyclical peaks. While Bernstein forecasts iron ore prices to decline to $96/t in 2026 from current levels around $105/t, they maintain their positive outlook on Rio. This confidence stems from consensus estimates already factoring in lower realized iron ore prices at approximately $80/t FOB for the company.

Rio Tinto announced plans to reduce production by 40 percent at its Yarwun Alumina Refinery and also secured a 15-year renewable energy agreement to help decarbonize its Kennecott mining operation.

Barrick Mining (NYSE:GOLD): Also rated Outperform, Barrick offers investors a currency hedge amid market volatility. Bernstein has marked gold prices to market at $4,180/oz for 2026, with momentum supported by continued central bank buying as institutions diversify reserves away from the US dollar. Gold ETF inflows accelerated significantly in 2025, reflecting rising interest from both institutional and retail investors. With the Federal Reserve expected to implement 2-3 rate cuts in 2026, gold’s outlook remains positive.

In a recent development, Barrick Mining announced it is exploring a potential initial public offering (IPO) for its North American gold assets. The company also received an upgrade to Outperform from BNP Paribas Exane.

Freeport-McMoRan (NYSE:FCX): Completing the trio with an Outperform rating, Freeport-McMoRan provides investors with less-expensive copper exposure. Bernstein forecasts copper prices to average $11,500/t in Q1, before moderating to $10,000/t in Q3 and Q4 as momentum fades and demand softens. While copper recently reached all-time highs near $13,000/t due to supply disruptions and speculative trading, the analysts caution that negative economic headlines—particularly related to AI and EVs—could trigger rapid outflows and price corrections.

Freeport-McMoRan reported third-quarter 2025 earnings and revenue that surpassed analyst expectations. Following an investigation at its Grasberg mine, the company also received a stock rating upgrade to Sector Outperform from Scotiabank.

As the mining sector navigates potentially peaking commodity cycles heading into 2026, Bernstein recommends investors adopt a more cautious stance with fewer long investment ideas overall, prioritizing quality companies with proven operational stability.

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

Investing.com -- Brokerage firm New Street Research says the global robotaxi market is approaching an inflection point, with key players like Tesla and Waymo expanding commercial operations in 2026.

New Street sees Tesla as the company best positioned to lead the transition. Analyst Peter Vogel reiterated a Buy rating on the stock and set a $600 price target, implying roughly 40% upside from current levels.

Vogel argues Tesla benefits from three structural advantages versus peers – the lowest unit cost, a flexible supply model, and a massive existing fleet.

Tesla’s “vision-only stack, vertical integration, and low vehicle cost drive structurally lower $/mile than peers,” giving it a durable cost advantage over rivals such as Waymo. The company’s total cost per mile could fall to around $0.50 over time, which the analyst estimates is about 40% below Waymo’s long-term potential.

A key differentiator, according to Vogel, is Tesla’s ability to scale supply without heavy upfront capital spending. He points out that Tesla can “leverage owner vehicles to meet peak demand,” allowing it to increase utilization of its owned fleet while avoiding diminishing returns on capital.

In San Francisco, he estimates Tesla would require around seven times less capital than Waymo to meet current ride-sharing demand, by relying partly on customer-owned vehicles rather than a fully owned fleet.

Furthermore, Tesla already has more than three million FSD-enabled (Full Self-Driving) vehicles generating real-world data across billions of miles, far exceeding competitors that operate in tightly geofenced areas.

Achieving unsupervised FSD would confirm that the technology “can scale fast and anywhere,” enabling rapid multi-city rollouts and faster expansion than peers.

“Tesla is, in practical terms, using free safety drivers to test FSD across the U.S., with >3m FSD-enabled vehicles generating data from >6bn real-world miles across a set of roads and conditions,” Vogel noted.

“By comparison, Waymo has accumulated ~100m cumulative miles, around 60x fewer, within controlled, geofenced operating areas,” he added.

Vogel identifies several potential catalysts in 2026 for Tesla, including the removal of safety drivers, progress toward unsupervised FSD, and the start of Cybercab production from the second quarter.

Over the longer term, the analyst estimates robotaxi services could generate more than $40 billion of revenue and around $15 billion of EBIT by 2030, and capture roughly 50% share of the market.

Investing.com -- Global Internet stocks are poised for a stronger year in 2026 as artificial intelligence moves from the “Frenzy” of 2024–25 into a new phase of “Synergy,” according to Cantor in a note this week.

Analyst Deepak Mathivanan wrote that Cantor is entering the year “with a significantly more optimistic outlook for Global Internet stocks,” adding that AI is set to enter “the golden age of ‘Synergy’ in the next 12–24 months.”

Cantor believes revenue growth is on track to accelerate across many internet subsectors, driven by “compute unlocks, AI deployments, and value capture.” 

The firm highlighted that innovation at the AI model layer remains strong and that “the emergence of model segmentation by primary use case should help investors underwrite LT ROIC of capex with greater clarity.”

Despite outperforming the Nasdaq by about nine points in 2025, Cantor’s Internet coverage still trades “~20% below medium-term valuation ranges.” 

The analyst expects the group to outperform in 2026 “with positive estimate revisions and improving sentiment.”

Mathivanan revealed the firm’s top picks for the year include Meta and Alphabet, with GOOGL upgraded from Neutral to Overweight. In large-caps, Cantor favors MercadoLibre and DoorDash, and in SMID-caps, Wix.

Cantor also highlighted broad acceleration ahead in multiple segments, pointing to potential top-line strength in digital ads at Google and Meta, hyperscalers such as GCP and AWS, mobility platforms UBER and LYFT, and subscription services like Spotify and Wix. 

AI integration into user experiences at UBER, DASH, CART and Airbnb should “enable strong volume growth.”

Investing.com -- MoonLake Immunotherapeutics (NASDAQ:MLTX) stock surged 25% on Thursday after the company received positive feedback from the U.S. Food and Drug Administration (FDA) regarding its Sonelokimab (SLK) treatment for Hidradenitis Suppurativa (HS).

The FDA confirmed that MoonLake may establish substantial evidence of effectiveness for SLK without additional clinical trials in HS. The regulatory agency advised the company to include results from its existing MIRA trial in the Biologic License Application (BLA) submission and to submit results from the VELA-2 trial to inform the safety profile.

Based on this feedback, MoonLake plans to proceed with its BLA submission for SLK in HS in the second half of 2026. The company requested the Type B meeting with the FDA to obtain regulatory clarity and discuss the clinical evidence strategy for the application.

"The positive outcome of our Type B meeting with the FDA provides the clarity needed to support a pathway to approval for our existing HS program, with no additional clinical trials required," said Dr. Jorge Santos da Silva, Founder and CEO of MoonLake.

SLK demonstrated significant improvements across key outcomes in over 1,000 HS patients enrolled in the MIRA, VELA-1, and VELA-2 trials. The MIRA trial showed a 43% response with 120mg SLK, representing a 29 percentage point difference versus placebo.

The Zug, Switzerland-based clinical-stage biotechnology company will hold an Investor Day on February 23, 2026, to further discuss the FDA feedback and share new clinical data for SLK across multiple indications.

MoonLake also reported that other clinical trials for SLK are progressing, with data releases expected from the Phase 2 S-OLARIS trial in Axial Spondyloarthritis and the Phase 3 IZAR trials in Psoriatic Arthritis, among others, over the next 12 months.

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

Silicon Valley Acquisition Corp. (SVAQU) completed the sale of 1.5 million units through its over-allotment option on January 7, generating $15 million in additional gross proceeds at $10.00 per unit.

The exercise of the over-allotment option brings the total initial public offering to 21.5 million units with aggregate gross proceeds of $215 million. Each unit contains one Class A ordinary share and one-half of one redeemable public warrant, with each whole warrant allowing the purchase of one Class A ordinary share at $11.50 per share.

The Class A ordinary shares and warrants will trade separately on Nasdaq under the symbols "SVAQ" and "SVAQW" once the securities begin separate trading.

The company was formed to pursue mergers, acquisitions or similar business combinations. Silicon Valley Acquisition Corp. stated it intends to focus on target businesses in fintech, crypto/digital assets, AI-driven infrastructure, energy transition, automotive/mobility, technology, consumer, healthcare and mining industries.

Clear Street LLC served as sole book-running manager for the offering. The Securities and Exchange Commission declared the registration statement effective on December 22, 2025.

The information is based on a press release statement from the company.