1. Renaissance of tech or just end-of-quarter funding? One day after a strong rally, Wall Street is set to open higher. It is expected that the Nasdaq will break a four-quarter decline with two trading sessions left. Back-to-back quarterly gains for the S&P 500 in Q1. In the past five quarters, the Dow has declined nearly 1.5%.
2. A big price target hike at Wells Fargo for AMD (AMD) to $120 from $85 per share. Holds a buy rating (overweight). In the near-term, the data center business is choppier, but in the long term, it is good. Year to date, AMD has risen almost 50%. NVDA (NVDA) is up nearly 85% in 2023. We have eight AI names, including Nvidia and AMD.
3. The use of YouTube, owned by Google, is steady, according to Credit Suisse. Alphabet's stock (GOOGL) could benefit from this, as it's just been awful. As a result of the company's excessive spending on moonshots and disappointing cost-cutting measures, we are losing patience with it.
4. A price target of $251 per share has been set by Credit Suisse on Meta Platforms (META). Maintains an outperform (buy) rating. WhatsApp is being discussed as a new source of revenue by analysts. In the years to come, Credit Suisse sees Instagram's search results bringing in around $1 billion in advertising revenue.
5. Walgreens Boots Alliance (WBA)'s price target has been lowered by $1 per share by Deutsche Bank. Maintains a buy rating. WBA had a mixed quarter, likely due to holding Amazon's (AMZN) unacknowledged theft, and its own efforts to change to the healthcare business.
6. Charles Schwab's (SCHW) price target has been cut from $99 to $68 by Morgan Stanley. A downgrade to equal weight (hold from buy) has been made from overweight. There is a lack of visibility and a lack of confidence that improvements will occur.
7. In Netflix's first-quarter earnings report next month, Wells Fargo likes what the streaming giant might say about the password-sharing crackdown. Commentary is viewed by analysts as being a "positive catalyst" for the stock. Canada's password effort was reported to be going better last week. We're seeing it more and more.
8. The price target for CVS Health (CVS) shares has been cut from $110 to $100 by Barclays. It should be kept overnight (buy). This article discusses the recent addition of Signify (SGFY) and whether buybacks may be curtailed as a result.
9. Walmart (WMT) is upgraded from in-line (buy from hold) to outperform Evercore ISI. A price target of $160 per share has been raised from $145 per share. Costco (COST) and TJX Companies (TJX), both of which we like and own, are pivoting out of non-core and toward omnichannel.
10. A rating of neutral is maintained by Citigroup on Restoration Hardware (RH), formerly known as Restoration Hardware. The price target is cut from $380 per share to $330 per share. Morgan Stanley reduces its PT to $275 from $300. Baird's reduces its PT to $250 from $300. You're always downbeat, aren't you? There may be too much persistence.
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