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Far right wins Austria election, boosting European rightwing surge

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By Francois Murphy and Dave Graham

VIENNA (Reuters) -Austrian voters handed a first ever general election victory to the far-right Freedom Party on Sunday, vote projections showed, illustrating rising support for hard-right parties in Europe fueled by concern over immigration levels.

The Eurosceptic, Russia-friendly FPO held a slim lead in opinion polls for months over Chancellor Karl Nehammer’s ruling conservative Austrian People’s Party (OVP) in a campaign dominated by immigration and worries about the economy.

Led by the 55-year-old Herbert Kickl, the FPO was projected to secure 29.1% of the vote, ahead of the OVP on 26.2%, and the centre-left Social Democrats on 20.4%, a projection by pollster Foresight for broadcaster ORF showed after polls closed.

A separate projection by pollster Arge Wahlen also had the FPO coming first, winning by a bigger margin than final polling had indicated, though it will need to cobble together a governing coalition if the country’s president asks it to.

“What’s at stake is whether the FPO will appoint the chancellor or not,” Kathrin Stainer-Haemmerle, a political science professor at the Carinthia University of Applied Sciences.

“Should that happen, then I have to say the role of Austria in the European Union would be significantly different. Kickl has often said that (Hungarian Prime Minister) Viktor Orban is a role model for him and he will stand by him.”

Kickl, who this year forged an alliance with Orban, opposes providing aid to Ukraine and wants sanctions against Russia withdrawn, arguing they are hurting Austria more than Moscow.

FPO staff and activists at a party event in Vienna cheered in jubilation when the election projections were announced.

Kickl’s victory may prove pyrrhic, as he is a polarising figure under whom other party leaders have refused to serve.

In a televised discussion with the FPO leader after projections came in, Nehammer reiterated his opposition to forming a government with Kickl, although he has not ruled out working with the FPO as a party.

Stressing his party had won, Kickl said he was ready to talk with all parties over forming a coalition.

FPO WANTS TO BUILD A ‘FORTRESS AUSTRIA’

Victory for the FPO, which is critical of Islam and pledges tougher rules on asylum seekers, follows far-right gains in countries including the Netherlands, France and Germany.

Sarah Wolf, a 22-year-old graphic designer and Austrian Communist Party supporter in Vienna, said ahead of the vote she was worried what an FPO victory would mean.

“What most scares me if the FPO really does get the most votes is we get something like Viktor Orban: a slow, gradual reduction in media diversity, democracy and understanding,” she said. “There are just so many really dangerous signs.”

Viktor de Lijzer, a 17-year-old soldier who supports the FPO, said the party was best placed to fix what he saw as too much criminal violence spurred by immigration.

President Alexander Van der Bellen, who oversees the formation of governments, has voiced reservations about the FPO because of its criticism of the EU and its failure to condemn Russia’s invasion of Ukraine. The party opposes EU sanctions on Moscow, citing Austria’s neutrality.

He has hinted he might thwart Kickl, saying the constitution does not require him to ask the first-placed party to form a government, even though that has long been the convention.

The FPO, which wants to stop granting asylum altogether and build a “fortress Austria” preventing migrants from entering, was initially led by a former Nazi lawmaker in the 1950s.

It has sought to moderate its image, but new controversy about its past surfaced at the weekend, when a video published by newspaper Der Standard showed members of the party attending a funeral where a song popular with the Nazi SS was sung.

© Reuters. People carry a banner that reads ''Don't let Nazis rule and never march'', Vienna, September 29, 2024. REUTERS/Lisa Leutner

A Jewish student group in Vienna then filed a complaint against FPO members accusing them of breaching anti-Nazi laws.

The FPO did not immediately reply to a request for comment.

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Truist cuts Editas Medicine target to $8, keeps buy rating

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On Monday, Truist Securities revised its price target for Editas Medicine (NASDAQ:), a company specializing in gene editing technology. The firm reduced the target to $8.00 from the previous $12.00 while retaining a Buy rating on the stock.

The adjustment follows the company’s third-quarter report, which did not present any unexpected results following recent announcements. The analyst indicated that Editas Medicine is expected to provide updated data on its reni-cel therapy at the upcoming American Society of Hematology (ASH) meeting, as well as updates on its in vivo program in the first quarter of 2025.

The reassessment of the reni-cel program prompted the analyst to moderate the outlook, leading to the lowered price target. Despite this change, the firm continues to support a Buy rating for Editas Medicine shares, suggesting confidence in the company’s long-term potential.

Editas Medicine is actively engaged in the development of gene-editing therapies, with reni-cel being one of its key investigational treatments. The forthcoming data presentations are anticipated to shed more light on the progress and efficacy of these treatments.

The updated price target of $8.00 reflects a more conservative valuation of Editas Medicine by Truist Securities, while the maintained Buy rating indicates a positive view of the stock’s future performance despite the recent adjustments.

In other recent news, Editas Medicine has been the focus of several analyst adjustments. Wells Fargo reduced its price target for Editas from $27.00 to $9.00, while maintaining an Overweight rating. This adjustment followed Editas Medicine’s disclosure of preclinical data for its in vivo hematopoietic stem and progenitor cell (HSPC) editing program.

The company also announced its intention to partner or out-license its reni-cel therapy. Baird also lowered its target for Editas Medicine to $10 from $18, keeping an Outperform rating.

The company has made significant strides in gene editing treatments for sickle cell disease and beta-thalassemia. It reported high levels of editing in hematopoietic stem and progenitor cells. Additionally, Editas secured an upfront payment of $57 million from a financing agreement with DRI Healthcare Trust. Leerink Partners and Truist Securities maintained their Market Perform and Buy ratings respectively on Editas’ stock.

InvestingPro Insights

Recent financial data from InvestingPro provides additional context to Truist Securities’ revised outlook on Editas Medicine (NASDAQ:EDIT). The company’s market capitalization stands at $245.89 million, reflecting its current valuation in the biotech sector. Editas’ stock has experienced significant volatility, with a 41.8% price decline over the past three months and a 48.68% drop in the last six months, aligning with the analyst’s more cautious stance.

InvestingPro Tips highlight that Editas is quickly burning through cash and is not expected to be profitable this year, factors that likely influenced Truist’s decision to lower the price target. The company’s gross profit margin is weak, with a negative 165.65% for the last twelve months as of Q2 2024, underscoring the challenges in its developmental stage.

Despite these headwinds, Editas maintains a strong liquidity position. An InvestingPro Tip notes that the company’s liquid assets exceed short-term obligations, providing some financial flexibility as it advances its gene-editing therapies. This could be crucial as Editas prepares to present updated data on reni-cel and its in vivo program.

For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Editas Medicine, providing deeper insights into the company’s financial health and market position.

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

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Cemex stock hits 52-week low at $5.17 amid market challenges

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Cemex SAB de CV (NYSE:), a leading materials company in the construction industry, has seen its stock price touch a 52-week low, dipping to $5.17. This price level reflects a significant downturn from its previous positions, marking a challenging period for the company. Over the past year, Cemex’s stock has experienced a notable decline, with a 1-year change showing a decrease of 22.42%. This downturn is indicative of the broader pressures facing the construction sector, including fluctuating demand and cost pressures, which have impacted the company’s market valuation and investor confidence.

In other recent news, CEMEX has reported a year of substantial growth and strategic optimization despite facing natural disasters and undergoing significant divestitures. The company announced divestitures amounting to $2.2 billion, concentrating on operations in the Dominican Republic, Guatemala, and the Philippines. In spite of severe weather conditions, including three major hurricanes in the U.S., CEMEX achieved a net income increase of over 200% year-over-year.

CEMEX’s growth strategy, initiated in 2019, has resulted in a 14% compound annual growth rate (CAGR) since 2020. The company also reported a 3% reduction in Scope 1 emissions and received a €157 million grant from the EU for a carbon capture project in Germany.

Analysts from Thompson Davis and Goldman Sachs questioned the company’s valuation strategies and the impact of Mexican residential demand on CEMEX, respectively. In response, CEMEX executives emphasized careful evaluation of operational changes and positive expectations for significant impact starting in 2025.

These are among the recent developments that underline CEMEX’s resilience and strategic focus, allowing it to navigate a challenging environment while maintaining a positive outlook for growth.

InvestingPro Insights

Cemex’s recent stock performance aligns with several key insights from InvestingPro. The company is currently trading near its 52-week low, as reflected in the article, with InvestingPro data showing the stock price at $5.18 at the previous close. This represents just 56.02% of its 52-week high, underscoring the significant downturn mentioned.

Despite the challenging market conditions, InvestingPro Tips highlight that Cemex remains a prominent player in the Construction Materials industry. The company’s Price to Book ratio of 0.63 suggests it may be undervalued relative to its assets, potentially offering value for investors looking beyond current market sentiment.

Importantly, an InvestingPro Tip indicates that net income is expected to grow this year, which could provide a positive catalyst for the stock. This growth expectation, combined with the company’s low valuation multiples, may present an opportunity for investors willing to weather the current downturn.

For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide further insights into Cemex’s financial health and future prospects.

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

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Jefferies cuts Booz Allen stock rating to Hold, sees slowdown in the long-term

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On Monday, Jefferies adjusted its stance on shares of Booz Allen Hamilton (NYSE:), downgrading the stock from Buy to Hold, though the firm increased the price target to $190 from $180. The revision comes despite acknowledging the company’s strong management and share price performance.

The analyst from Jefferies noted that while Booz Allen Hamilton has shown stellar performance, a pause on the stock is suggested as earnings per share (EPS) revisions through the fiscal year 2025 (ending in March 2025) may be limited.

The limited potential for EPS revisions is attributed to margins being range-bound, with the Defense sector—accounting for 48% of sales and approximately 10% margins—outperforming the Civil sector, which makes up 33% of sales and has a 13% margin. The analyst further pointed out that there is an anticipated slowdown in organic growth excluding items, from 11% in the fiscal year 2025 to 8% in fiscal years 2026 to 2027 estimates.

The new price target of $190 is based on a 30% market premium or twice the three-year average, reflecting the analyst’s valuation of the stock. This price target suggests a modest upside from the previous target, indicating a positive outlook on the company’s value despite the rating downgrade.

The downgrade to Hold reflects a cautious approach towards Booz Allen Hamilton’s stock, considering the expected limitations in earnings growth and margin expansion in the upcoming years. The firm’s analysis suggests that while the company has been performing well, future gains might not be as robust as in the previous periods.

In other recent news, Booz Allen Hamilton reported a robust second quarter for fiscal year 2025, with major revenue hikes in its civil, defense, and intelligence sectors.

The company’s VOLT growth strategy, a record $41 billion backlog, a $115 million insurance recovery, and a $200 million boost from payroll modernization were significant contributors to this performance. Adjusted EBITDA reached $364 million, a 25% year-over-year increase, and net income surged by 129% to $390 million.

Despite the loss of the Advana contract and a Department of Veterans Affairs contract to Deloitte, Booz Allen maintains a strong demand environment with a qualified pipeline of over $20 billion.

The firm’s operating model allows for quick adaptation to client needs amid shifting priorities, and recruitment and retention trends remain strong, making Booz Allen an attractive destination for tech talent. These recent developments emphasize Booz Allen’s strong market presence and potential for continued growth.

InvestingPro Insights

While Jefferies has downgraded Booz Allen Hamilton (NYSE:BAH) to Hold, recent data from InvestingPro paints a nuanced picture of the company’s financial health and market performance. BAH’s revenue growth of 13.94% over the last twelve months and a strong 18.01% quarterly growth align with the company’s solid performance noted in the article.

The stock’s P/E ratio of 28.58 and an adjusted P/E ratio of 31.27 for the last twelve months as of Q2 2025 suggest that investors are willing to pay a premium for BAH’s earnings, which could be justified by its consistent growth. This valuation is further supported by the company’s robust EBITDA growth of 30.89% over the same period.

InvestingPro Tips highlight that BAH has raised its dividend for 9 consecutive years and maintained payments for 13 years, indicating a commitment to shareholder returns. This is particularly relevant given the article’s focus on the company’s financial outlook. Additionally, the tip that BAH operates with a moderate level of debt provides context to the company’s financial stability, which could be a factor in its ability to navigate potential growth slowdowns mentioned in the analyst’s report.

For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips that could provide further insights into BAH’s market position and future prospects.

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

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