What Cramer is watching Wednesday — Target's ripple effect, Intel bear case, Halliburton gets a price bump

Published Wed, Jun 8 20229:13 AM EDTUpdated Thu, Jun 9 20225:13 PM EDT

What I am looking at June 8, 2022 Target (TGT) price target lowered to $175 from $200 at Barclays — analyst Karen Short says end of visibility for retailers. Bank of America downgrades TGT to hold from buy. Price targets cut at UBS, Raymond James, RBC Capital, Baird. The retail group has gone from darling to despised. But the consumer needs a break given the cost of gasoline, and this is a potential win for the consumer. Citi says Target guidance cut bad news for retail industry, and most bad for Macy's (M), Gap (GPS), Levi Strauss (LEVI), Carter's (CRI), Children's Place (PLCE), Kohl's (KSS), Hanesbrands (HBI). Ollie's Bargain Outlet (OLLI)—big number cut and CFO gone. The retailer expects full-year earnings in the range of $1.83 to $1.98, down from $2.15 to $2.22. Comparable store sales growth down 2%. Barclays cuts the price targets of all the homebuilders, including D.R. Horton (DHI), KB Home (KBH), calling a peak in the cycle and the inevitable cuts to come. Citi pulls Edwards Lifesciences (EW) from it North America Focus List on tough year-over-year compares in the second quarter. The medical device maker had been such a darling. Credit Suisse (CS) warned of a likely second-quarter loss, just one day after David Miller, the company's head of investment banking, said "we are back" in a Bloomberg interview. Cracker Barrel (CBRL) price target cut to $89 from $94 at Citi, cites worries over seasonably higher inventory. Bold call: Barclays says it is time to revisit the long thesis for Uber (UBER) because shortage of drivers has ended. When we spoke to Lyft (LYFT) co-founder John Zimmer Tuesday, he said that driver supply remains the critical issue until driverless vehicles. Club name Halliburton (HAL) price target bump to $53 from $50 at Barclays ... takes Schlumberger (SLB) up, too. Analyst cites the beginning of a multi-year upscale spending cycle. Susquehanna likes the drillers, too. Chris Danely at Citi now expects Intel (INTC) to negatively preannounce and said the bear case is shaping up faster than expected. Maintains neutral rating and a $45 price target. JPMorgan goes to hold from buy on coffee chain Dutch Bros (BROS)! Container imports bound for the United States are down 36% since may 24. Rates coming lower. Congestion ending. But remember Union Pacific (UNP) went up yesterday on this news. Hot rolled coil steel has now fallen 21% since April high. Bad for Cleveland-Cliffs (CLF). RealReal (REAL) founder Julie Wainwright stepping down as CEO is kind of shocking because she just held an analyst meeting in March outlining long-term plans! Baird cuts price target in half to $6. Plug Power (PLUG) assumed with a neutral at Piper Sandler, expects $3 billion of revenue by 2025, but no profitability. Morgan Stanley lowers point targets on Royal Caribbean Cruises (RCL), Norwegian Cruise Lines (NCLH) and Carnival (CCL). Were these names the ultimate in meme stocks? They are all down big from just after coming out of the pandemic's grip. Take-Two (TTWO) price target raised to $162 from 145 at Wedbush. Analyst Michael Pachter says potential for combined Take-Two/Zynga to generate net bookings of $7.8 billion by fiscal year 2025. Affirm (AFRM) started at Wedbush with a sell rating. Big call: too much competition and worries about Affirm's path to GAAP profitability. (Jim Cramer's Charitable Trust is long HAL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Employees assist customers at the checkout area of a supermarket on May 11, 2022 in New York City.

Liao Pan | China News Service | Getty Images

What I am looking at June 8, 2022

Target (TGT) price target lowered to $175 from $200 at Barclays — analyst Karen Short says end of visibility for retailers. Bank of America downgrades TGT to hold from buy. Price targets cut at UBS, Raymond James, RBC Capital, Baird. The retail group has gone from darling to despised. But the consumer needs a break given the cost of gasoline, and this is a potential win for the consumer. Citi says Target guidance cut bad news for retail industry, and most bad for Macy's (M), Gap (GPS), Levi Strauss (LEVI), Carter's (CRI), Children's Place (PLCE), Kohl's (KSS), Hanesbrands (HBI).
Ollie's Bargain Outlet (OLLI)—big number cut and CFO gone. The retailer expects full-year earnings in the range of $1.83 to $1.98, down from $2.15 to $2.22. Comparable store sales growth down 2%.
Barclays cuts the price targets of all the homebuilders, including D.R. Horton (DHI), KB Home (KBH), calling a peak in the cycle and the inevitable cuts to come.
Citi pulls Edwards Lifesciences (EW) from it North America Focus List on tough year-over-year compares in the second quarter. The medical device maker had been such a darling.