What the Club is watching Wednesday — another consumer ding, Apple's event, Alzheimer's data

Published Wed, Sep 7 20229:26 AM EDTUpdated Wed, Sep 7 20229:33 AM EDT

What the Club is watching Wednesday, Sept. 7, 2022 Ahead of their talk at the Barclays Global Consumer Staples conference late Tuesday, Newell Brands (NWL) cut its full-year outlook due to a challenging consumer backdrop and continued inflationary pressures. This may not be the only preannouncement. More companies are scheduled to talk at the conference this week, including Club holding Procter & Gamble (PG) on Thursday following two reports that questioned P & G's recession-resistance status. Goldman Sachs says Club holding Apple 's (AAPL) approach to pricing is what they're most interested in during Wednesday's fall product event, which starts at 1 p.m. ET. Four new iPhone 14 models are expected to be announced. Catalyst Idea on Biogen (BIIB) from Morgan Stanley. The event is topline phase 3 data for Alzheimer's drug lecanemab. Sees 65% upside in the stock if clear evidence of clinical efficacy across primary and secondary endpoints, but their highest probability case, 60% odds, is a study failure or mixed result, which they estimate it would cause BIIB to fall 8% to 18%. We are monitoring the BIIB implications for Club holding Eli Lilly (LLY), which we believe has a superior Alzheimer's program, and we touched on a range of outcomes during Tuesday's "Morning Meeting" for Club members. Morgan Stanley raised price target on LLY to $412 per share from $395. Morgan Stanley downgrades AstraZeneca (AZN) to equal weight (hold) "to reflect near-term earnings risk, above-peer exposure to US drug pricing legislation and relative valuation considerations." Several Starbucks (SBUX) Investor Day preview notes out Wednesday morning. Barclays says they are a buyer ahead of the Sept. 13 event ; Citi says balanced risk/reward but increases price target to $94 per share from $90. Outgoing interim CEO Howard Schultz and incoming CEO Laxman Narasimhan were on CNBC's "Squawk Box" for an in-depth interview. Schultz says once he leaves the C-suite this time he's not coming back. We're working on a bigger Club story. Check back on the IC front page in a bit. Activist urges Club holding Chevron (CVX) to pump more oil, resist the demands of ESG-driven asset managers. ESG stands of considerations around environmental, social, and corporate governance issues. Netflix (NFLX) upgraded from underperform to neutral by Macquarie, says the additional of an ad-supported tier will add an incremental $1.1 billion of revenues. Meanwhile Jefferies lowers PT to $230 from $243. Target (TGT) CEO Brian Cornell signs on for three more years, will push him past the traditional retirement age of 65. MKM downgrades Electronic Arts (EA) on lowered growth outlook for fiscal 2024 and margin compression. Says it makes sense as a takeout candidate but near-term event unlikely. Wolfe upgrades Pinterest (PINS) to outperform (buy). They like the long-term user growth and monetization potential under new CEO Bill Ready. McDonald's (MCD) price target increased to $270 per share from $263 by Piper Sandler. (Jim Cramer's Charitable Trust is long PG, AAPL, LLY, SBUX and CVX. 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.

Bottles of Tide detergent, a Procter & Gamble product, are displayed for sale in a pharmacy on July 30, 2020 in Los Angeles, California.

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What the Club is watching Wednesday, Sept. 7, 2022

Ahead of their talk at the Barclays Global Consumer Staples conference late Tuesday, Newell Brands (NWL) cut its full-year outlook due to a challenging consumer backdrop and continued inflationary pressures. This may not be the only preannouncement. More companies are scheduled to talk at the conference this week, including Club holding Procter & Gamble (PG) on Thursday following two reports that questioned P&G's recession-resistance status.