| To: Kirk © who wrote (7791) | 10/8/2024 7:14:56 AM | | From: Julius Wong | | | | Morgan Stanley’s list of tax loss selling stocks
Oct. 07, 2024 3:28 PM ET
By: Monica L. Correa, SA News Editor
 ipopba/iStock via Getty Images
Morgan Stanley analysts published their list of tax loss selling stocks.
These are stocks in the top quintile of “sell” ratings on Jan. 16, as a proxy for stocks that are favored or widely held. Analysts also screen for stocks that saw at least a 10% drop in their price from mid-January through the end of September.
Morgan Stanley chief investment officer Michael J. Wilson said they limit the downside to 25%, since the stocks with the biggest price drops “tend to show something of a rebound in the fourth quarter.”
Wilson also said that the bulk of underperformance, compared to the market – the compared benchmark is the S&P 1500 (NYSEARCA: SPTM) – for the list happens in October.
“In the month of October, our tax loss selling stocks have tended to underperform the market by an average of 178 basis points and underperform sector and industry group peers by 114, and 110 basis points, respectively, with hit rates of about 55%,” he said.
The tax loss selling stocks underperform the average stock in their sector by 137 basis points in the fourth quarter, with a hit rate of 54%; and underperform the average stock in their industry group by 128 basis points in the fourth quarter, with a hit rate of 54%.
Within communication services ( XLC)
- Iridium Communications Inc. ( IRDM) – Return from mid-Jan through Sept month-end: - 20%
Within consumer discretionary ( XLY)
- Aptiv Plc ( APTV) – Return from mid-Jan through Sept month-end: -11%
- Standard Motor Products Inc. ( SMP) – Return from mid-Jan through Sept month-end: -15%
- XPEL Inc. ( XPEL) – Return from mid-Jan through Sept month-end: -16%
- Haverty Furniture Companies Inc. ( HVT) – Return from mid-Jan through Sept month-end: -19%
- LKQ Corp. ( LKQ) – Return from mid-Jan through Sept month-end: -16%
- Hilton Grand Vacations Inc. ( HGV) – Return from mid-Jan through Sept month-end: -12%
- Mister Car Wash Inc. ( MCW) – Return from mid-Jan through Sept month-end: -22%
Within consumer staples ( XLP)
- Darling Ingredients Inc. ( DAR) – Return from mid-Jan through Sept month-end: -17%
- Simply Good Foods Co. ( SMPL) – Return from mid-Jan through Sept month-end: -17%
Within energy ( XLE)
- Chord Energy Corp. ( CHRD) – Return from mid-Jan through Sept month-end: -15%
- Civitas Resources Inc. ( CIVI) – Return from mid-Jan through Sept month-end: -21%
- Halliburton Co. ( HAL) – Return from mid-Jan through Sept month-end: -13%
- Patterson-UTI Energy Inc. ( PTEN) – Return from mid-Jan through Sept month-end: -24%
- Schlumberger Limited ( SLB) – Return from mid-Jan through Sept month-end: -13%
- Talos Energy Inc. ( TALO) – Return from mid-Jan through Sept month-end: -18%
- Valaris Ltd. ( VAL) – Return from mid-Jan through Sept month-end: -15%
Within financials ( XLF)
- Global Payments Inc. ( GPN) – Return from mid-Jan through Sept month-end: -21%
Within health care ( XLV)
- Privia Health Group Inc. ( PRVA) – Return from mid-Jan through Sept month-end: -15%
- Simulations Plus Inc. ( SLP) – Return from mid-Jan through Sept month-end: -16%
- U.S. Physical Therapy Inc. ( USPH) – Return from mid-Jan through Sept month-end: -11%
- Biogen Inc. ( BIIB) – Return from mid-Jan through Sept month-end: -21%
- Dynavax Technologies Corp. ( DVAX) – Return from mid-Jan through Sept month-end: -21%
- Neurocrine Biosciences Inc. ( NBIX) – Return from mid-Jan through Sept month-end: -13%
- Perrigo Co. Plc. ( PRGO) – Return from mid-Jan through Sept month-end: -21%
- Repligen Corp. ( RGEN) – Return from mid-Jan through Sept month-end: -14%
- West Pharmaceutical Services Inc. ( WST) – Return from mid-Jan through Sept month-end: -13%
Within industrials ( XLI)
- Alamo Group Inc. ( ALG) – Return from mid-Jan through Sept month-end: -12%
- Boeing Co. ( BA) – Return from mid-Jan through Sept month-end: -24%
- Gibraltar Industries Inc. ( ROCK) – Return from mid-Jan through Sept month-end: -12%
- Insteel Industries Inc. ( IIIN) – Return from mid-Jan through Sept month-end: -14%
- NV5 Global Inc. ( NVEE) – Return from mid-Jan through Sept month-end: -10%
Information technology ( XLK)
- Photronics Inc. ( PLAB) – Return from mid-Jan through Sept month-end: -16%
- Adobe Inc. ( ADBE) – Return from mid-Jan through Sept month-end: -13%
Materials ( XLB)
- Arch Resources Inc. Class A ( ARCH) – Return from mid-Jan through Sept month-end: -17%
- Quaker Houghton ( KWR) – Return from mid-Jan through Sept month-end: -14%
- Stepan Co. ( SCL) – Return from mid-Jan through Sept month-end: -12%
Real estate ( XLRE)
- Armada Hoffler Properties Inc. ( AHH) – Return from mid-Jan through Sept month-end: -11%
- Host Hotels & Resorts Inc. ( HST) – Return from mid-Jan through Sept month-end: -11%
|
| | Effective Collaboration - Team Research for Better Returns: | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| From: Julius Wong | 10/9/2024 8:05:10 AM | | | | | | Insurance brokers a safe bet against Hurricane Milton; reinsurers vulnerable - analysts
Oct. 08, 2024 9:59 AM ET
By: Max Gottlich, SA News Editor
 cdwheatley/iStock Unreleased via Getty Images
With Hurricane Milton seen making landfall midweek as a category 3 storm (or stronger), analysts are calling for an outsized insurance loss event. Until the exact path is known, reinsurance stocks are expected to see further volatility, while insurance broker stocks could be a defensive play.
Depending on how much damage the West Florida storm causes, insured losses could range from $10B to $100B, Wells Fargo's Elyse Greenspan wrote in a note, citing BMS estimates. She noted that markets appear to be pricing in a loss of more than $50B.
Property and casualty insurance stocks fell markedly Monday on the prospect of rising claims from their policyholders, before paring some losses in Tuesday morning trading. The SPDR S&P Insurance ETF (NYSEARCA: KIE) edged up 0.8% at press time.
Greenspan's base case for P&C insurance losses is $20B.
In all, she wrote, "reinsurance stocks should continue to be volatile," while insurance brokers could be a safe bet as they wouldn't incur losses from the storm "and should benefit from any price firming post Milton."
Net of reinsurance, Progressive (NYSE: PGR), Allstate (NYSE: ALL) and Chubb (NYSE: CB) have the most homeowners' exposure among the primaries, while RenaissanceRe Holdings (NYSE: RNR) and Everest Group (NYSE: EG) have the most exposure among reinsurers, Evercore ISI analyst David Motemaden wrote in a Monday note.
In commercial property, he added, Chubb and American International Group (NYSE: AIG) have the most exposure in his overall coverage, although AIG "is well protected given extensive reinsurance purchases."
Insurance brokers: Arthur J. Gallagher ( AJG), Brown & Brown ( BRO) Marsh & McLennan ( MMC).
Reinsurers: Arch Capital Group ( ACGL), Oxbridge Re Holdings ( OXBR), Reinsurance Group of America ( RGA).
P&C insurers: Aflac ( AFL), Travelers Companies ( TRV), Hartford Financial Services Group ( HIG), Cincinnati Financial ( CINF). |
| | Effective Collaboration - Team Research for Better Returns: | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| From: Julius Wong | 10/10/2024 6:37:48 PM | | | | | | Wolfe’s tax loss selling stocks within industrials, tech, materials
Oct. 10, 2024 2:39 PM ET
By: Monica L. Correa, SA News Editor
 Yozayo/iStock via Getty Images
Wolfe Research put together a tax loss selling basket.
Here is part 1.
Typically, the biggest year-to-date losers underperform in a big way during the last months of the year, and with the Oct. 31 mutual fund year-end approaching, analysts expect tax loss selling to accelerate.
“Historically, avoiding the biggest year-to-date losers has been a positive alpha generating strategy heading into the last several months of the year,” wrote Chris Senyek, chief investment strategist, in a note. “The reason is that the market’s biggest laggards can be subject to selling pressures by investors looking to harvest capital losses and/or provide ‘window dressing’ for their annual reports.”
September, October and December are the most common for mutual funds.
The following stocks, divided by sector, are in Wolfe’s tax loss selling basket, part 2:
Industrials:
- Avis Budget Group Inc. ( CAR) – Year-to-date price change: -53%; Price vs. 12-month volume-weighted average price: -32%
- Atkore Inc. ( ATKR) – Year-to-date price change: -48%; Price vs. 12-month volume-weighted average price: -38%
- Concentrix ( CNXC) – Year-to-date price change: -46%; Price vs. 12-month volume-weighted average price: -25%
- Clarivate Plc ( CLVT) – Year-to-date price change: -29%; Price vs. 12-month volume-weighted average price: -6%
- Robert Half ( RHI) – Year-to-date price change: -24%; Price vs. 12-month volume-weighted average price: -5%
- NexTracker ( NXT) – Year-to-date price change: -22%; Price vs. 12-month volume-weighted average price: -22%
- American Airlines Group ( AAL) – Year-to-date price change: -21%; Price vs. 12-month volume-weighted average price: -14%
- AGCO Corp. ( AGCO) – Year-to-date price change: -21%; Price vs. 12-month volume-weighted average price: -9%
- Chart Industries ( GTLS) – Year-to-date price change: -12%; Price vs. 12-month volume-weighted average price: -10%
Information technology:
- Wolfespeed ( WOLF) – Year-to-date price change: -80%; Price vs. 12-month volume-weighted average price: -61%
- SolarEdge Tech ( SEDG) – Year-to-date price change: -78%; Price vs. 12-month volume-weighted average price: -61%
- Five9 Inc. ( FIVN) – Year-to-date price change: -64%; Price vs. 12-month volume-weighted average price: -47%
- Intel Corp. ( INTC) – Year-to-date price change: -56%; Price vs. 12-month volume-weighted average price: -32%
- DoubleVerify Holdings ( DV) – Year-to-date price change: -54%; Price vs. 12-month volume-weighted average price: -34%
- Freshworks Inc. (FRSH) – Year-to-date price change: -54%; Price vs. 12-month volume-weighted average price: -34%
- UiPath Inc. ( PATH) – Year-to-date price change: -52%; Price vs. 12-month volume-weighted average price: -32%
- Unity Software ( U) – Year-to-date price change: -49%; Price vs. 12-month volume-weighted average price: -18%
- Snowflake Inc. ( SNOW) – Year-to-date price change: -44%; Price vs. 12-month volume-weighted average price: -28%
- Braze Inc. ( BRZE) – Year-to-date price change: -42%; Price vs. 12-month volume-weighted average price: -30%
- Paycor HCM Inc. ( PYCR) – Year-to-date price change: -37%; Price vs. 12-month volume-weighted average price: -16%
- Bill Holdings ( BILL) – Year-to-date price change: -36%; Price vs. 12-month volume-weighted average price: -18%
- Qualys Inc. ( QLYS) – Year-to-date price change: -36%; Price vs. 12-month volume-weighted average price: -21%
- GlobalFoundries Inc. ( GFS) – Year-to-date price change: -36%; Price vs. 12-month volume-weighted average price: -24%
- EPAM Systems ( EPAM) – Year-to-date price change: -34%; Price vs. 12-month volume-weighted average price: -15%
- IPG Photonics Corp. ( IPGP) – Year-to-date price change: -33%; Price vs. 12-month volume-weighted average price: -17%
- Atlassian Corp. ( TEAM) – Year-to-date price change: -33%; Price vs. 12-month volume-weighted average price: -14%
- Teradata Corp. ( TDC) – Year-to-date price change: -32%; Price vs. 12-month volume-weighted average price: -20%
- Allegro MicroSystems ( ALGM) – Year-to-date price change: -30%; Price vs. 12-month volume-weighted average price: -21%
- Lattice Semiconductor Corp. ( LSCC) – Year-to-date price change: -25%; Price vs. 12-month volume-weighted average price: -16%
- Power Integrations Inc. ( POWI) – Year-to-date price change: -24%; Price vs. 12-month volume-weighted average price: -13%
- Workiva Inc. ( WK) – Year-to-date price change: -24%; Price vs. 12-month volume-weighted average price: -8%
- Zscaler Inc. ( ZS) – Year-to-date price change: -23%; Price vs. 12-month volume-weighted average price: -12%
- GitLab Inc. ( GTLB) – Year-to-date price change: -23%; Price vs. 12-month volume-weighted average price: -12%
- Paycom Software Inc. ( PAYC) – Year-to-date price change: -19%; Price vs. 12-month volume-weighted average price: -5%
- Confluent Inc. ( CFLT) – Year-to-date price change: -19%; Price vs. 12-month volume-weighted average price: -24%
Materials:
- The Chemours Co. ( CC) – Year-to-date price change: -39%; Price vs. 12-month volume-weighted average price: -21%
- Cleveland Cliffs ( CLF) – Year-to-date price change: -37%; Price vs. 12-month volume-weighted average price: -23%
- Albemarle Corp. ( ALB) – Year-to-date price change: -35%; Price vs. 12-month volume-weighted average price: -18%
- The Mosaic Co. ( MOS) – Year-to-date price change: -25%; Price vs. 12-month volume-weighted average price: -14%
|
| | Effective Collaboration - Team Research for Better Returns: | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| From: Julius Wong | 10/11/2024 7:28:19 AM | | | | | | Tesla tops list of most heavily shorted securities in September, Hazeltree says
Oct. 10, 2024 11:45 AM ET
By: Preeti Singh, SA News Editor
 Gunter_Nezhoda
Tesla (NASDAQ: TSLA) regained its position as the most heavily shorted security in the Americas in September, according to the latest Shortside Crowdedness Report from Hazeltree.
The Austin, Texas-based EV maker topped the list as the most crowded security in the large-cap category with a score of 99, moving up from second position in August (97). The Hazeltree Crowdedness Score represents securities that are being shorted by the highest percentage of funds in Hazeltree’s community.
As of Sep 30, traders sold 74.33M shares of TSLA short, representing 2.33% of the float.
“It is notable to see that Tesla regained its position as the top shorted large-cap stock in the Americas, a position which, until July, it had held for nearly every month since we’ve launched the report,” said Tim Smith, managing director of data insights at Hazeltree.
On Semiconductor (NASDAQ: ON) was a close second, followed by Western Digital (NASDAQ: WDC) and Chevron (NYSE: CVX), all of which scored 96. Chevron ( CVX), which had been the most crowded security in this category in August, dropped to the fourth spot this time.
Tractor Supply Company ( TSCO) had the highest institutional supply utilization (12.83%) - an indicator of how “hot” a security is in terms of the supply demand dynamic. Tractor Supply ( TSCO) had a short interest of 7M shares as of Sep 30, representing 6.51% of the float.
In the mid-cap category, Bloom Energy ( BE) and Shift4 Payments ( FOUR) were the most crowded securities, each with a Hazeltree Crowdedness Score of 99. Wolfspeed ( WOLF) continued its hold as the most crowded security in the small-cap category.
These were the top 10 most shorted large-cap securities in the Americas in September, according to Hazeltree:
#1 Tesla ( TSLA): Hazeltree Crowdedness Score of 99
#2 On Semiconductor ( ON): Hazeltree Crowdedness Score of 96
#3 Western Digital ( WDC): Hazeltree Crowdedness Score of 96
#4 Chevron ( CVX): Hazeltree Crowdedness Score of 96
#5 Caterpillar ( CAT): Hazeltree Crowdedness Score of 93
#6 Deere &Company ( DE): Hazeltree Crowdedness Score of 93
#7 Live Nation Entertainment ( LYV): Hazeltree Crowdedness Score of 89
#8 IBM ( IBM): Hazeltree Crowdedness Score of 89
#9 Church & Dwight ( CHD): Hazeltree Crowdedness Score of 86
#10 Tractor Supply Company ( TSCO): Hazeltree Crowdedness Score of 86 |
| | Effective Collaboration - Team Research for Better Returns: | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| From: Julius Wong | 10/12/2024 8:02:48 AM | | | | | | Top ‘Phase 2’ AI infrastructure stocks that are still high-conviction
Oct. 11, 2024 1:09 PM ET
By: Monica L. Correa, SA News Editor
 imaginima/iStock via Getty Images
Investors continue to have high convictions in stocks that are continuing to spend in artificial intelligence and its related infrastructure.
Goldman Sachs said there are four phases of AI implementation, starting with Nvidia ( NVDA), followed by infrastructure, then enabled revenues, and productivity as the fourth. The typical “phase two” AI infrastructure stock is up 27% year-to-date.
Analysts said they expect these stocks’ prices to growth due to earnings growth rather than valuation expansion.
In addition, starting valuations for these stocks are above average while Nvidia’s ( NVDA) sale surprises, its hyper-scaler capex spending, and corporate AI mentions have slowed.
The “phase two” stocks include those in semiconductors, cloud providers, data center REITs, hardware and equipment, security software, and utilities. It also includes the mega-caps – Amazon ( AMZN), Alphabet ( GOOGL), Meta ( META), Microsoft ( MSFT), and Oracle ( ORCL) — which have announced capex investments in AI north of $215B in 2024 and $250B in 2025.
“While many factors besides AI affect near-term fundamentals, Phase 2 share prices have rallied beyond forward EPS expectations and suggest incremental investor optimism about the potential boost from AI,” said Ryan Hammond, vice president of Goldman Sachs U.S. Equity Strategy, in a note.
However, future returns could be constrained by elevated starting valuations, he added. Currently, valuations for the “phase two” stocks are above average. Compared to the S&P 500 ( SP500), these stocks trade 0.4 standard deviations more expensive relative to the past 10 years.
So, while these stocks seem more expensive, “it is possible that the demand for AI leads the mega-cap tech stocks to spend even more on AI-related capex than investors and analysts currently expect,” said Hammond.
These are the top “phase two” stocks, ranked by year-to-date return:
- Vistra Corp. ( VST) – YTD return: 235%
- Palantir Technologies Inc. ( PLTR) – YTD return: 141%
- Constellation Energy Corporation ( CEG) – YTD return: 140%
- Coherent Corp. ( COHR) – YTD return: 125%
- Vertiv Holdings Co. ( VRT) – YTD return: 123%
- ARM Holdings PLC ( ARM) – YTD return: 91%
- NRG Energy, Inc. ( NRG) – YTD return: 84%
- Credo Technology Group Holding Ltd. ( CRDO) – YTD return: 73%
- Arista Networks, Inc. ( ANET) – YTD return: 70%
- Oracle Corporation ( ORCL) – YTD return: 67%
- Taiwan Semiconductor Manufacturing Co., Ltd. ( TSM) – YTD return: 64%
- Broadcom Inc. ( AVGO) – YTD return: 64%
- Super Micro Computer, Inc. ( SMCI) – YTD return: 60%
- Belden Inc. ( BDC) – YTD return: 53%
- Public Service Enterprise Group Inc. ( PEG) – YTD return: 53%
- Corning Inc. ( GLW) – YTD return: 50%
- Pure Storage, Inc. ( PSTG) – YTD return: 47%
- Monolithic Power Systems, Inc. ( MPWR) – YTD return: 47%
- NetApp, Inc. ( NTAP) – YTD return: 46%
- Onto Innovation, Inc. ( ONTO) – YTD return: 37%
|
| | Effective Collaboration - Team Research for Better Returns: | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| From: Julius Wong | 10/16/2024 7:19:09 AM | | | | | | Bitcoin hits 2-month high above $67,000 after ‘monster’ inflows into spot bitcoin ETFs
Oct. 15, 2024 12:03 PM ET
By: Carla Mozee, SA News Editor
 Olemedia/E+ via Getty Images
Bitcoin ( BTC-USD) on Tuesday surpassed $67,000 for the first time in more than two months, building on its move above $65,000 a day earlier, buoyed by big inflows into spot bitcoin exchange-trade funds.
Bitcoin ( BTC-USD) hit an intraday high of $67,938.85, the strongest price since July 28 when it traded above $67,800. The price then pulled back in Tuesday trade, down 0.3% at $65,643. Bitcoin ( BTC-USD) is up ~49% this year.
In an eye-catching move, $559.9M flowed into 11 spot bitcoin ETFs on Monday, the largest amount since early June, according to data from London-based Farside Investors. BlackRock's iShares Bitcoin Trust ETF (NASDAQ: IBIT), the largest bitcoin fund, drew in $79.5M of that total.
“Monster day for spot btc ETFs,” with +$550M of inflows, said Nate Geraci, president of The ETF Store, in a post on X (formerly Twitter) late Tuesday, adding that the market is approaching $20B in net inflows in 10 months.
“It’s advisors & institutional investors continuing to slowly adopt,” Geraci said.
Standard Chartered in a note pointing to Polymarket data said that digital assets were starting to move higher on the prospect that former President Donald Trump, who has embraced crypto projects, will win the White House in November. Standard Chartered is also seeing “topside BTC calls at the 80K level (for 27 Dec expiry)”.
Further illustrating crypto’s growing reach, Vice President Kamala Harris, as part of outreach to Black men in her White House run, on Monday proposed policy supporting a regulatory framework for cryptocurrency and other digital assets. Her outreach paper said more than 20% of Black Americans own or have owned cryptocurrency assets.
BlackRock CEO Larry Fink, in addressing a question on its Q3 earnings calls last week, said he was “not sure either president -- or other candidate would make a difference,” for the digital asset landscape.
“I do believe the utilization of assets are going to become more and more of a reality worldwide,” Fink said. “Conversations we're having with institutions worldwide, conversations about how should they think about digital assets, what type of asset allocation there should be, I mean, we believe bitcoin is an asset class in itself,” he said, according to a transcript.
Here are some other bitcoin-backed ETFs: ( ARKB), ( GBTC), ( BRRR), ( BTCO), ( HODL), ( BTCW), ( FBTC), ( BITB), and ( EZBC). |
| | Effective Collaboration - Team Research for Better Returns: | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| From: Julius Wong | 10/19/2024 9:55:49 AM | | | | | | Notable analyst calls this week: Etsy, Zoom and Enphase among top picks
Oct. 19, 2024 9:37 AM ET
By: Tiyashi Datta, SA News Editor
 peshkov
The S&P500 ( SP500) closed in the green on Friday, amid focus on the arrival of a fresh earnings season. For the week, Nasdaq ( COMP:IND) fell 0.7%, while Dow ( DJI) advanced 0.4%.
Wall Street had a slew of upgrades and downgrades from analysts. Here are some of the major calls for the week:
Goldman Sachs turns bearish on Etsy
Goldman Sachs downgraded Etsy (NASDAQ: ETSY) to Sell rating from Neutral, saying the online retail stock could lose market share over the next few years.
Analyst Eric Sheridan said that while the current Street estimates reflect more normalized growth levels in a better backdrop for discretionary consumer spending, the visibility remains low on the timing of a recovery of that sort.
On the profit line, Etsy ( ETSY) is seen facing margins headwinds, which could lead to earnings disappointments, the brokerage said.
Caterpillar downgraded by Morgan Stanley
Morgan Stanley downgraded Caterpillar (NYSE: CAT) Underweight from Equal weight and cut PT on the maker of heavy equipment to $332 a share from $349.
“While we have been cautious on U.S. non-residential construction activity all year long and increasingly cautious on Caterpillar ( CAT) earnings, we now see rising evidence of a potential de-stocking downturn for U.S. construction equipment,” Angel Castillo, analyst at Morgan Stanley,
Wedbush upgrade Zoom, Dynatrace; hikes PT for other software names
Wedbush upgraded Zoom (NASDAQ: ZM) and Dynatrace (NYSE: DT) to Outperform from Neutral.
"Zoom's broad product portfolio allows it to address the market in multiple areas of communications and collaboration where the company sizes its addressable market growing to ~$235B by 2028 addressing Unified Communications, Contact Center, Webinars, Virtual Events and Sales Intelligence," said Wedbush analyst Daniel Ives and pushed PT up to $85 from $80.
The brokerage said Dynatrace's hybrid model makes it well suited to larger enterprises and increased PT to $67 from $55. Wedbush also increased PT for other software names including CrowdStrike (NASDAQ: CRWD), MongoDB's (NASDAQ: MDB) and SentinelOne's (NYSE: S).
Enphase gets downgraded by RBC, Susquehanna; Guggenheim hikes rating
Enphase Energy (NASDAQ: ENPH) was in focus after RBC cut its recommendation to Sector Perform from Outperform, citing "competitive market dynamics" that should result in a slower pace of growth next year not yet reflected in consensus estimates.
Susquehanna's Biju Perincheril also downgraded the stock to Neutral from Positive with a $104 price target, cut from $147, citing the slower than expected recovery in U.S. residentials and market share concerns, coupled with the stock's premium valuation.
However, Guggenheim raised Enphase Energy ( ENPH) to Neutral from Sell.
Mizuho upgrades Duke Energy, CMS Energy gets downgraded to Neutral
Mizuho upgraded Duke Energy (NYSE: DUK) to Outperform from Neutral, viewing the drop-off related to the recent hurricanes in Florida and North Carolina as "a great buying opportunity."
Mizuho analyst Anthony Crowdell views Duke ( DUK) as "a premium utility" that will trade at a double-digit P/E premium, as the company has resolved rate cases in North Carolina, South Carolina, and Florida, and approaches the upcoming Q4 earnings call with a capital refresh as a catalyst for the re-rating.
CMS Energy (NYSE: CMS), however, received a downgrade at Mizuho to Neutral from Outperform, with analyst Anthony Crowdell seeing limited opportunity for significant multiple upsides from current levels. The analyst also says consensus estimates already reflect growth at the top of the guidance range.
UBS sees potential second-half recovery for Datadog
Datadog (NASDAQ: DDOG) was upgraded by UBS Buy from Neutral, citing industry checks that showed "green shoots" of a potential second-half recovery.
Analyst Karl Keirstead upped PT on the stock to $150 from $125 and raised his revenue growth estimates for 2025 and 2026 to the 25% to 30% range from the current 25% to 26% range. Keirstead sees a potential strong medium-term growth for the AWS/Azure cloud infrastructure sector and believes these trends could help Datadog maintain or even modestly accelerate its mid-20% growth rate in the coming quarters.
Wells Fargo downgrades Capri Holdings as investors awaits Tapestry court ruling
Capri Holdings (NYSE: CPRI) was cut to equal weight from overweight at Wells Fargo as investors await a court decision on its planned sale to Tapestry (NYSE: TPR).
Wells Fargo analyst Ike Boruchow said believes the risk reward is balanced at current levels.
"While admittedly we leave upside on the table if the deal is approved by the judge (takeout price is $57), we still believe there is a chance that the FTC wins the lawsuit," Boruchow wrote.
Truist has downgraded Amgen (NASDAQ: AMGN) from Buy to Hold saying that the potential for obesity asset MariTide is already included in the biotech's stock price.
Bernstein started coverage of Eli Lilly (NYSE: LLY), Gilead Sciences (NASDAQ: GILD) and Amgen ( AMGN) with outperform ratings.
Mizuho downgraded Fortinet (NASDAQ: FTNT) to Underperform from Neutral. The analysts said that their third quarter checks were solid, but with some puts and takes. Cybersecurity demand was healthy, and Generative AI adoption is showing more encouraging signs; however, consumption data points were mixed, the analysts added. |
| | Effective Collaboration - Team Research for Better Returns: | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| |
