Pliant Therapeutics (NASDAQ:PLRX) Stock

Pliant Therapeutics

Pliant Therapeutics Inc is a clinical-stage biopharmaceutical company focused on discovering and developing novel therapies for the treatment of fibrosis and related diseases. Its primary product candidate is bexotegrast (PLN-74809), an oral, small molecule, that the company is developing for the treatment of idiopathic pulmonary fibrosis, or IPF, and primary sclerosing cholangitis.

Pliant Therapeutics Inc

On Monday, March 3rd, U.S. markets closed sharply lower after Trump announced 25% tariffs on Canada and Mexico, with the S&amp;P 500 seeing its worst drop since December. Stocks had already slipped after an ISM survey showed declining manufacturing PMI. Investors, expecting a delay, reacted as markets priced in the tariff impact.
Related: <a target="_blank" href="https://www.benzinga.com/general/social-media/25/03/44098232/markets-tank-after-trump-confirms-more-tariffs-heres-what-wall-street-is-saying" rel="noreferrer noopener">Markets Tank After Trump Confirms More Tariffs: Here&#8217;s What Wall Street Is Saying</a>
The New Orders Index contracted to 48.6%, while the Production Index expanded to 50.7%. Prices surged to 62.4% due to tariff-driven costs. Employment fell to 47.6%, indicating workforce reductions. New Export Orders dipped to 51.4%, while Imports rose to 52.6%.
Most S&amp;P 500 sectors fell, led by tech, energy, and consumer discretionary stocks, while real estate and consumer staples gained.
The Dow Jones Industrial Average fell 1.348% to close at 43,191.24, the S&amp;P 500 declined 1.76% to 5,849.72, and the Nasdaq Composite was down 2.64% to 18,350.19.
Asia Markets Today
<ul>
<li>On Tuesday, Japan&#8217;s Nikkei 225 declined 1.34% to 37,318.50, led by losses in the Fishery, Transportation Equipment, and Chemical sectors.</li>
<li>Australia&#8217;s S&amp;P/ASX 200 slid 0.58%, closing at 8,198.10, led by losses in the Energy, Utilities and Resources sectors.</li>
<li>India&#8217;s Nifty 50 was down 0.18% to 22,080.30, led by losses in the Auto, Technology, and Fast-Moving Consumer Goods sectors, while the Nifty 500 gained 0.06% to 19,909.40.</li>
<li>China&#8217;s Shanghai Composite gained 0.22% to 3,324.21, and the Shanghai Shenzhen CSI 300 fell 0.08% to 3,885.22.</li>
<li>Hong Kong&#8217;s Hang Seng fell 0.28%, ending the session at 22,941.77.</li>
</ul>
Eurozone at 05:30 AM ET
<ul>
<li>The European STOXX 50 was down 1.85%.</li>
<li>Germany&#8217;s DAX declined 1.98%.</li>
<li>France&#8217;s CAC fell 1.14%.</li>
<li>U.K.&#8217;s FTSE 100 index traded lower by 0.29%</li>
</ul>
Commodities at 05:30 AM ET
<ul>
<li>Crude Oil WTI was trading lower by 0.80% at $67.82/bbl, and Brent was down 1.10% at $70.82/bbl.</li>
<li>Oil prices fell as OPEC+ confirmed an April output hike, and U.S. tariffs on Canada, Mexico, and China took effect, prompting retaliatory measures. Trump&#8217;s pause on Ukraine aid also raised speculation of potential Russian sanctions relief, further pressuring crude markets.</li>
<li>Natural Gas declined 0.46% to $4.102.</li>
<li>Gold was trading higher by 0.80% at $2,924.29, Silver was up 0.47% to $32.465, and Copper slipped 1.62% to $4.5322.</li>
</ul>
U.S. Futures at 05:30 AM ET
Dow futures were down 0.15%, S&amp;P 500 futures fell 0.16% and Nasdaq 100 futures slid 0.04%.
Forex at 05:30 AM ET
<ul>
<li>The U.S. Dollar Index slipped 0.26% to 106.27, USD/JPY was down 0.43% to 148.85, and USD/AUD rose 0.02% to 1.6069.</li>
<li>The U.S. dollar fell Tuesday amid trade tensions and economic slowdown fears despite new tariffs on Canada, Mexico, and China.</li>
<li>Trump&#8217;s <a href="https://www.benzinga.com/news/25/03/44092335/trumps-tariffs-threaten-canada-mexico-china-and-american-wallets" target="_blank" rel="noreferrer noopener">25% tariffs</a> on Canada and Mexico and increased duties on Chinese goods took effect, triggering retaliatory measures. China imposed new tariffs and restrictions, while Canada and Mexico planned countermeasures. Markets reacted negatively, fearing economic disruptions, rising costs, and recession risks. Trump&#8217;s aggressive trade policies continue reshaping global commerce.</li>
</ul>
Photo via Shutterstock

Asia

News

Emerging Markets

Eurozone

Futures

Commodities

Forex

Markets

ADIV

AGOV

ASHR

BBEU

BOIL

CQQQ

PowerShares DBmmodity Index Optimum Yield Diversified Fund

EEMA

FLAX

CurrencyShares British Pound Sterling Trust

IEMG

IEUR

KraneShares Trust KraneShares S&P Pan Asia Dividend Aristocrats Index ETF

KDIV

SPEM

USDU

PowerShares DB US Dollar Index Bullish Fund

Asia And Europe Markets Decline; Oil Falls As OPEC+ Confirms Output Hike - Global Markets Today While US Slept

Amylyx Pharma (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMLX#NASDAQ">AMLX</a>) reported quarterly losses of $(0.55) per share which missed the analyst consensus estimate of $(0.52) by 5.77 percent. This is a 885.71 percent decrease over earnings of $0.07 per share from the same period last year. The company reported $(665.00 thousand) in sales this quarter. This is a 100.61 percent decrease over sales of $108.45 million the same period last year.

Earnings

Earnings Misses

Amplify YieldShares Oil Hedged MLP Income ETF

AMLX

Amylyx Pharma Q4 EPS $(0.55) Misses $(0.52) Estimate

Citigroup analyst Patrick Donnelly downgrades Quest Diagnostics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DGX#NYSE">DGX</a>) from Buy to Neutral and maintains the price target from $185 to $185.

Downgrades

Price Target

Analyst Ratings

Citigroup Downgrades Quest Diagnostics to Neutral, Maintains Price Target to $185

U.S. stock futures declined on Tuesday following the worst trading day of 2025 on Monday. Futures of all benchmark indices fell in premarket trading except Nasdaq 100.
Investor anxiety over tariffs loomed as the March 4 deadline for tariff imposition on Mexico and Canada neared. President Donald Trump indicated on Monday that there was &#8220;no room left&#8221; for tariff negotiations with Canada and Mexico. He will be addressing the Congress today, which is expected to give further clarity on tariffs and other policies.
Meanwhile, the Treasury yields slipped further on Tuesday. The 10-year Treasury yield stood at 4.16%, while the two-year yield was at 3.93%. According to the CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>, there is a 91% chance that the Federal Reserve will keep interest rates unchanged for the March meeting. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Change (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>0.03%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>-0.06%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>-0.07%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>-0.33%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose in premarket on Tuesday. SPY was up 0.046% to $584.04, and QQQ advanced 0.23% to $498.20, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Cues From The Last Session
Real estate, consumer staples, health care and utilities were the only sectors that advanced on Monday. The market witnessed the second worst trading day of March ever as information technology, energy, consumer discretionary, and materials led the decline.
On the economic front, February&#8217;s S&amp;P final U.S. manufacturing PMI came in at 52.7 as compared to the preliminary reading of 51.6. This was at a 32-month high signaling an improvement in the health of the manufacturing sector.
The ISM Manufacturing PMI rose to 50.3 in February 2025, indicating a second consecutive month of slight expansion for U.S. manufacturing. In January, private residential construction spending decreased by 0.4%, with notable reductions in both multifamily construction and home improvement expenditures.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/-)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>-2.64%</td>
<td>18,350.19</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>-1.76%</td>
<td>5,849.72</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>-1.48%</td>
<td>43,191.24 </td>
</tr>
<tr>
<td>Russell 2000</td>
<td>-2.81%</td>
<td>2,102.24</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts
Bearish investor sentiment surged to a near-historic 60.6% in late February, the highest in 30 months, signaling a potential contrarian buying opportunity.
Ryan Detrick of Carson Research noted that historically, stocks average a 28% gain a year after such high bearish readings, although exceptions like 2008 exist. He observed that even at a 55% bearish threshold, returns are generally strong.
Detrick suggests that barring a financial crisis, which he deems unlikely, "investors willing to stay strong and not panic sell" could see significant gains, with the S&amp;P 500 averaging nearly 13% higher in six months and 18% in a year following similar sentiment spikes.
Talking about the effects of Trump's policies on the market, the chairman and CIO of Navellier &amp; Associates, Louis Navellier said, "The volatility is certainly being fed by Trump 2.0 moves, with tariffs scheduled to be launched soon,"
Economist Jeremy Siegel, on the other hand, stated that investors are taking profits on high-flying tech and reconsidering value stocks. However, he added that slowing economic growth could hamper the value stocks as well. "In a weakening economy, all stocks face challenges, though dividend-paying and more defensive equities may benefit from lower interest rates," he added.
See Also:<a href="https://www.benzinga.com/money/how-to-trade-futures"> How to Trade Futures </a>
Upcoming Economic Data
Here&#8217;s what investors will keep on Tuesday:
<ul>
<li>New York Fed President John Williams will speak at 2:20 p.m. ET, whereas, Richmond Fed President Tom Barkin will speak at an undetermined time.</li>
</ul>
Stocks In Focus:
<ul>
<li>Crowdstrike Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) was up 0.34% in the premarket on Tuesday ahead of its earnings, which will be released after the opening bell. Analysts expect it to report earnings of 86 cents per share on revenue of $1,034.3 million.</li>
</ul>
<ul>
<li>Target Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) advanced 0.39% as Wall Street expects it to report quarterly earnings of $2.25 per share on revenue of $30.85 billion before the opening bell.</li>
</ul>
<ul>
<li>Green Dot Corporation. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDOT#NYSE">GDOT</a>) jumped 15.50% as it surpassed fourth-quarter earnings and revenue expectations and appointed Kim Olson as the new CFO.</li>
</ul>
<ul>
<li>Walgreens Boots Alliance Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBA#NASDAQ">WBA</a>) climbed 6.14% as private equity firm Sycamore Partners could take the company private by Thursday this week, reported WSJ.</li>
</ul>
<ul>
<li>Sacks Parente Golf Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPGC#NASDAQ">SPGC</a>) slumped 37.16% after it announced a 1-for-30 reverse stock split.</li>
</ul>
<ul>
<li>Tenaya Therapeutics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TNYA#NASDAQ">TNYA</a>) dropped 25.02% as the company announced plans for a public offering of units, including common stock and two warrant series, plus pre-funded units with immediately exercisable warrants.</li>
</ul>
<ul>
<li>Sphere Entertainment Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPHR#NYSE">SPHR</a>) was 0.16% lower as it missed the earnings estimates.</li>
</ul>
<ul>
<li>Biodesix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BDSX#NASDAQ">BDSX</a>) surged 18.65% after reporting a total revenue reaching $71.3 million, up 45% year-on-year.</li>
</ul>
Commodities, Gold And Global Equity Markets:
Crude oil futures were trading lower in the early New York session by 1.11% to hover around $67.61 per barrel.
The gold spot index was up by 0.90% to $2,919.13 per ounce. Its last record high was at $2,956.37 per ounce. The Dollar Index was down 0.46% at the 106.254 level.
Asian markets were lower on Tuesday as India's S&amp;P BSE Sensex, China's CSI 300, South Korea's Kospi, Japan's Nikkei 225, Australia's ASX 200, and Hong Kong's Hang Seng index declined. European markets were also lower in trade.
Read Next:
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<li><a href="https://www.benzinga.com/25/03/44070799/mark-cuban-supports-trumps-new-gold-card-scheme-if-sold-to-corporations-for-employee-citizenship-have-a-look-at-the-listed-companies-with-most-number-of-immigrants">Mark Cuban Supports Trump&#8217;s New &#8216;Gold Card&#8217; Scheme If Sold To Corporations For Employee Citizenship: Here&#8217;re The Listed-Companies With Most Number Of Immigrants</a></li>
</ul>
Photo courtesy: Shutterstock

Equities

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TNYA

US Futures Tumble As Traders Await Trump's Congress Address: 'Volatility Is Certainly Being Fed By Trump 2.0 Moves,' Says Expert

Citigroup analyst Patrick Donnelly upgrades Charles River (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRL#NYSE">CRL</a>) from Sell to Neutral and raises the price target from $155 to $175.

Upgrades

Citigroup Upgrades Charles River to Neutral, Raises Price Target to $175

General

HYMTF

Hyundai Motor And Tate Announce Máret Ánne Sara As Next Hyundai Commission Artist

Tech

RDWR

Radware To Hold Its Hackers Challenge On March 13 In Peru

Citigroup analyst Anthony Pettinari initiates coverage on Titan America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTAM#NYSE">TTAM</a>) with a Buy rating and announces Price Target of $19.

Initiation

TTAM

Citigroup Initiates Coverage On Titan America with Buy Rating, Announces Price Target of $19

Health Care

FDA Approves TEVIMBRA In US For The First-Line Treatment Of Adults with Unresectable Or Metastatic Esophageal Squamous Cell Carcinoma (ESCC)

Citigroup analyst Vikram Bagri initiates coverage on Centrus Energy (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/LEU#AMEX">LEU</a>) with a Neutral rating and announces Price Target of $104.

Citigroup Initiates Coverage On Centrus Energy with Neutral Rating, Announces Price Target of $104

Biotech

Guidance

ESPR

Esperion Expects Full Year 2025 Operating Expenses Of $215M-$235M, Including Approximately $15M In Non-cash Expenses Related To Stock Compensation

Modiv Industrial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MDV#NYSE">MDV</a>) reported quarterly earnings of $0.37 per share which beat the analyst consensus estimate of $0.31 by 19.35 percent. This is a 7.5 percent decrease over earnings of $0.40 per share from the same period last year. The company reported quarterly sales of $11.66 million which beat the analyst consensus estimate of $11.39 million by 2.37 percent. This is a 5.09 percent decrease over sales of $12.29 million the same period last year.

Earnings Beats

Modiv Industrial Q4 AFFO $0.37 Beats $0.31 Estimate, Sales $11.66M Beat $11.39M Estimate

Esperion Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESPR#NASDAQ">ESPR</a>) reported quarterly losses of $(0.11) per share which beat the analyst consensus estimate of $(0.16) by 31.25 percent. This is a 78 percent increase over losses of $(0.50) per share from the same period last year. The company reported quarterly sales of $69.11 million which beat the analyst consensus estimate of $61.58 million by 12.22 percent. This is a 114.30 percent increase over sales of $32.25 million the same period last year.

Esperion Therapeutics Q4 2024 GAAP EPS $(0.11) Beats $(0.16) Estimate, Sales $69.11M Beat $61.58M Estimate

On Tuesday, Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) unveiled VeloSky, which is a unified networking solution that enables Communications Service Providers (CSPs) to integrate fiber, cellular, and<a target="_blank" href="https://www.benzinga.com/pressreleases/25/03/g44101257/broadcom-launches-velosky-to-deliver-network-convergence-transform-connectivity" rel="noreferrer noopener"> satellite connectivity into a single appliance</a>.
Designed to enhance the adoption of 5G and satellite services, VeloSky helps providers unlock new revenue opportunities and diversify their business models.
The solution, built on the VeloRAIN (Robust AI Networking) architecture, offers advanced visibility, prioritization, and automation, enabling enterprises to optimize operations and enhance user experiences.
VeloSky unifies wired and wireless networks under a single platform, integrating fiber, 5G fixed wireless, and satellite connectivity without separate hardware.
With zero-touch provisioning, real-time monitoring, and a unified management console, it streamlines operations, reduces costs, and enhances security.
VeloSky ensures seamless, scalable, and reliable connectivity to meet evolving enterprise demands of service providers.
Sanjay Uppal, vice president and general manager, VeloCloud Division, Broadcom, said, &#8220;By unifying diverse network underlays into a single, AI-optimized platform, service providers can deliver premium, differentiated services to enterprise customers while simplifying operations and accelerating time-to-revenue.&#8221;
Last month, the company announced the availability of its end-to-end PCIe Gen 6 portfolio and a partnership with Micron Technology <a target="_blank" href="https://www.benzinga.com/trading-ideas/movers/25/02/43990982/broadcom-shares-are-on-the-rise-today-whats-going-on" rel="noreferrer noopener">for&nbsp;AI infrastructure expansion</a>.
Investors can gain exposure to the stock via Columbia Select Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SEMI#NYSE">SEMI</a>) and VanEck Fabless Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMHX#NASDAQ">SMHX</a>).
Price Action: AVGO shares are down 0.72% at $186.03 premarket at the last check Tuesday.
Read Next:
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<li><a href="https://www.benzinga.com/news/25/03/44088049/berkshire-hathaway-hits-1-07-trillion-market-cap-surpassing-tesla-earnings-shock-and-teslas-decline-highlight-changing-markets" target="_blank" rel="noreferrer noopener">Berkshire Hathaway Hits $1.07 Trillion Market Cap, Surpassing Tesla – Earnings Shock and Tesla&#8217;s Decline Highlight Changing Markets</a></li>
</ul>
Image via Shutterstock.

Large Cap

AVGO

SEMI

SMHX

Broadcom Debuts VeloSky To Accelerate 5G And Satellite Adoption

Barclays analyst Richard Hightower upgrades Agree Realty (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ADC#NYSE">ADC</a>) from Underweight to Equal-Weight and raises the price target from $74 to $75.

Barclays Upgrades Agree Realty to Equal-Weight, Raises Price Target to $75

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="600" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/03/04070131/ZTE-0304-01.jpeg" alt="" class="wp-image-7073" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/03/04070131/ZTE-0304-01.jpeg 900w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/03/04070131/ZTE-0304-01-300x200.jpeg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/03/04070131/ZTE-0304-01-768x512.jpeg 768w" sizes="(max-width: 900px) 100vw, 900px" /></figure>
The telecoms equipment seller's revenue began declining in the second half of last year, and fell 10% in the fourth quarter
<h4 class="wp-block-heading">Key Takeaways:</h4>
<ul>
<li>ZTE's revenue dropped for first time last year since 2018 as its core business slumped with reduced 5G spending by Chinese wireless carriers</li>
<li>The telecoms equipment maker's AI and enterprise businesses show promise, but lower margins and the potential for new U.S. sanctions could pose challenges</li>
</ul>
Crippling U.S. sanctions on&nbsp;ZTE Corp.&nbsp;(0763.HK; 000063.SZ) in 2018 brought the Chinese telecoms giant to the brink of collapse, forcing it to pay a historic $1.4 billion penalty and overhaul its leadership to secure relief. Since then, the company has embarked on a grueling recovery path, pivoting to lower its reliance on U.S. suppliers, strengthen its position in the domestic market, and broaden its product portfolio beyond telecoms equipment.
By 2022, ZTE appeared to turn a corner as its annual revenue finally rebounded to surpass pre-sanctions levels in 2017, signaling a tentative comeback. But the company's&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0228/2025022801495.pdf">latest financial report</a>&nbsp;for 2024 paints a more complex picture. Decelerating revenue growth, compressed profit margins, and persistent tensions between Beijing and Washington are casting shadows over the sustainability of its recovery in an increasingly fractured global technology landscape.
The company's 2024 report, released last Friday, reveals a sobering milestone: ZTE's annual revenue dropped 2.38% year-over-year to 121.3 billion yuan ($16.7 billion), marking its first decline since U.S. sanctions caused its revenue to tumble by 21% in 2018. This reversal ends a five-year recovery streak that peaked at 13% growth in 2021 before decelerating to 7% in 2022 and just 1% in 2023. Meantime, its net income last year also slipped into contraction, falling 9.7%, contrasting with marginal gains in earlier years.
On a quarterly basis, ZTE reported year-on-year revenue gains in the first two quarters of 2024, only to slip into accelerating revenue contraction in the second half of the year. Those declines culminated with a 10% drop in the fourth quarter to 31.3 billion yuan.
The slowdown contrasts sharply with crosstown rival&nbsp;Huawei, which was hit with even harsher U.S. sanctions but has&nbsp;<a href="https://thebambooworks.com/huawei-rings-up-improbable-comeback-as-revenue-soars/">bounced back</a>&nbsp;more strongly by developing alternative non-U.S. suppliers and moving into new areas like intelligent driving. ZTE has made similar efforts, which we'll detail shortly, though the results have been more limited.
Investors weren't too impressed with ZTE's latest report, with its Hong Kong-listed stock tumbling 12.5% the day after the announcement. At its Monday close, the stock is now roughly where it stood just before the original U.S. sanctions in 2018.
ZTE's slowdown coincides with a broader downturn in China's telecommunications sector. After years of aggressive investment in 5G infrastructure, the country's three major state-owned carriers — China Mobile, China Telecom, and China Unicom — collectively cut their capital spending by 5.4% in 2024, the first annual drop since 2018, according to Communication Weekly, a state-affiliated industry publication.
The pullback hit ZTE's core business hard. Revenue from its carrier network segment — which covers telecoms equipment and accounts for over half of its sales — sank 15% year-over-year in 2024. Others reporting&nbsp;<a href="https://thebambooworks.com/comba-telecom-rings-up-red-ink-on-5g-spending-slowdown/">similar difficulties</a>&nbsp;last year include China-focused telecoms software makers&nbsp;Comba&nbsp;(2342.HK) and&nbsp;AsiaInfo&nbsp;(1675.HK; 688225.SH).
<h4 class="wp-block-heading">Diversification effort</h4>
ZTE's geographic revenue mix has shifted dramatically since the U.S. sanctions of 2018. Revenue from U.S. and European markets dropped to 15% of its total in 2024, down from 25% in 2017, according to its latest report.
Despite expectations that ZTE might pivot strongly toward emerging markets friendlier to Chinese investment, progress has been limited. Africa, for example, contributed just 5.3% to overall revenue in 2024, marginally up from 3.5% in 2017. The slow expansion reflects the challenge of competing with Huawei's established dominance in these regions, even as those countries accelerate their build-out of 5G infrastructure.
Instead, ZTE has primarily looked inward and redirected its focus to its home China market, which now accounts for 68% of revenue, up from 57% in 2017. The company's efforts to diversify its product portfolio are also focused on China.
Those efforts are centered on its government and corporate business segment, which includes servers and enterprise software. This segment grew by an impressive 37% last year, accounting for 15.3% of revenue, up from 9% in 2017. The company's consumer electronics, including smartphones and tablets, grew 16%, but its 27% share of revenue remains below its 2017 level of 32%.
In its 2024 report, ZTE emphasizes the growth potential of its government and corporate business, pointing to surging demand for AI servers and software services amid the AI boom. It also highlights government support through policies like "East Data, West Computing," a national initiative to expand data center infrastructure across China. But even in these areas, the company must compete with far more established giants, led by hometown rival&nbsp;Lenovo&nbsp;(0992.HK), as well as foreign rivals like&nbsp;Dell&nbsp;(DELL.US).
Capitalizing on AI opportunities, ZTE moved quickly to tap into the momentum created by DeepSeek, whose recent breakthrough success has sparked nationwide demand for AI infrastructure. Last month, ZTE introduced AiCube, a hardware system that combines AI training and inference functions, aiming to support various computing scenarios and speed up AI deployment for its clients.
However, expanding into this business also presents challenges. The company's government and corporate segment operates on notably thinner margins than the telecoms equipment business, partly due to the high component costs of AI servers and related infrastructure. ZTE's 2024 report reveals the segment's gross profit margin was just 15% last year, significantly lower than the 51% margin for its traditional telecoms equipment business. This margin difference was a key factor in the company's reduced net income for the year.
Beyond operational challenges, investors might also want to weigh geopolitical risks as ZTE expands into these new sectors.
The AI server business illustrates such vulnerabilities, since such systems depend heavily on AI chips from U.S. suppliers like Nvidia or domestic chips made with U.S. technology. Though China can still import certain lower-tier Nvidia chips under current rules, the unpredictable nature of U.S. export controls creates ongoing uncertainty for this business line.
Another pressing concern is the potential for ZTE to fall victim to new U.S. restrictions, given rising tensions with China under the new administration of President Donald Trump. While ZTE's recent supply chain diversification efforts may help avoid a repeat of its 2018 crisis, challenges remain.
Though ZTE has not fully disclosed its mitigation strategies, Chinese media reports indicate the company has increased procurement from domestic chip suppliers. In ZTE's 2024 annual report, Chairman Li Zixue emphasized the company's commitment to developing independent core technologies. This focus is reflected in ZTE's R&amp;D spending, which has doubled from around 10% of revenue pre-sanctions to 20% last year.
In the near term, ZTE's biggest challenge probably lies not in potential sanctions but in navigating the slowdown in China's telecoms equipment spending. With China's 5G networks mostly built and domestic carriers tightening budgets, the company's success will depend on how quickly it can scale up new growth areas like AI infrastructure and enterprise solutions, while expanding its presence in non-Western markets.

ZTE comeback stumbles on China telecoms spending slowdown

Barclays analyst Aman Rakkar upgrades HSBC Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSBC#NYSE">HSBC</a>) from Equal-Weight to Overweight.

HSBC

Barclays Upgrades HSBC Holdings to Overweight

DA Davidson analyst Rudy Kessinger upgrades Okta (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OKTA#NASDAQ">OKTA</a>) from Neutral to Buy and raises the price target from $90 to $125.

OKTA

DA Davidson Upgrades Okta to Buy, Raises Price Target to $125

Buybacks

Lithia & Driveway Board of Directors Authorize $350M Increase In Share Repurchase

Ross Stores, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROST#NASDAQ">ROST</a>) will release its fourth-quarter financial results, after the <a href="https://www.benzinga.com/quote/rost/earnings">closing bell, on Tuesday, March 4</a>.
Analysts expect the Dublin, California-based company to report quarterly earnings at $1.66 per share, down from $1.82 per share in the year-ago period. Ross Stores projects quarterly revenue of $5.95 billion, compared to $6.02 billion a year earlier, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
On Feb. 20, Ross Stores named William Sheehan as Deputy CFO.
Ross Stores shares fell 2.5% to close at $136.81 on Monday.
Benzinga readers can access the latest analyst ratings on the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie">Analyst Stock Ratings</a> page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let's have a look at how Benzinga's most-accurate <a href="https://www.benzinga.com/quote/ROST/analyst-ratings">analysts have rated the company</a> in the recent period.
<ul>
<li>Morgan Stanley analyst Alex Straton downgraded the stock from Overweight to Equal-Weight and cut the price target from $164 to $140 on Jan. 21, 2025. This analyst has an accuracy rate of 65%.</li>
<li>Wells Fargo analyst Ike Boruchow downgraded the stock from Overweight to Equal-Weight with a price target of $165 on Jan. 10, 2025. This analyst has an accuracy rate of 71%.</li>
<li>Guggenheim analyst Robert Drbul reiterated a Buy rating with a price target of $180 on Nov. 22, 2024. This analyst has an accuracy rate of 61%.</li>
<li>JP Morgan analyst Matthew Boss maintained an Overweight rating and increased the price target from $171 to $173 on Nov. 22, 2024. This analyst has an accuracy rate of 67%.</li>
<li>Evercore ISI Group analyst Michael Binetti maintained an Outperform rating and increased the price target from $170 to $180 on Nov. 22, 2024. This analyst has an accuracy rate of 63%.</li>
</ul>
Considering buying ROST stock? Here&#8217;s what analysts think: 
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="577" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/04054413/image-13-1024x577.png" alt="" class="wp-image-807803" style="width:569px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/04054413/image-13-1024x577.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/04054413/image-13-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/04054413/image-13-768x433.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/04054413/image-13.png 1096w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
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ROST

Ross Stores Gears Up For Q4 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

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Legal

Pliant Therapeutics, Inc. Company Investigated by the Portnoy Law Firm

Pliant Therapeutics Announces Next Steps Following DSMB Recommendation on BEACON-IPF, a Phase 2b/3 Trial in Patients with Idiopathic Pulmonary Fibrosis

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Pliant Therapeutics, Inc. - PLRX

Pliant Therapeutics Provides Corporate Update and Reports Fourth Quarter 2024 Financial Results

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