The Club's 10 things to watch Monday, June 26
1. Stock futures were muted heading into the final week of June and the second quarter. The market is coming off a week that saw all three major indices fall by at least 1%, ending multi-week winning streaks.
2. Tesla (TSLA) gets hit with another downgrade after the stock's roughly 24% rise since the start of June. Goldman Sachs on Sunday moved its rating on the electric-vehicle maker to neutral, from buy, on the belief that the stock now reflects the firm's "positive long-term view of Tesla's growth potential and competitive positioning." Goldman raised its price target to $248 a share, from $185.
3. UBS on Monday downgraded Club holding Alphabet (GOOGL) to neutral, from buy, citing "limited upside to consensus estimates and near-term monetization risk." The firm raised its price target on Alphabet stock to $132 a share, from $123, while noting a better risk-reward setup at two other Club tech names — Amazon (AMZN) and Meta Platforms (META).
4. Roth MKM on Monday named Amazon the firm's top internet mega cap pick, while raising its price target on the ecommerce giant to $155 a share, from $130, and maintaining a buy rating on the stock. The firm said Amazon, Meta and Alphabet should be "significant medium-term beneficiaries" from the artificial intelligence craze.
5. UBS on Monday upgraded Moderna (MRNA) to buy, from neutral, on the view that the company's pipeline beyond Covid-19 vaccines is underappreciated by the market. UBS lowered its price target on Modera stock to $191 a share, from $221.
6. BMO Capital on Monday upgraded Sherwin-Williams (SHW) to outperform, or buy, from market perform, citing "reasonable upside" to consensus estimates and signs the housing market may be improving. BMO raised its price target on SHW stock to $275 a share, from $269.
7. Morgan Stanley on Monday named Club holding Palo Alto Networks (PANW) its top pick in cybersecurity, while raising its price target to $302 a share, from $255, and maintaining an overweight weighting on shares. The firm predicts PANW will exceed $100 billion in market cap, from about $74 billion as of Monday, over the next 12 months.
8. Club holding Eli Lilly (LLY) presented phase-2 data at an American Diabetes Association conference for an oral drug aimed at combating obesity and type-2 diabetes. The studies should cement Lilly's positioning as a dominant player in the space.
9. Wells Fargo on Monday initiated coverage on Brinker International (EAT) with an underweight, or sell, rating and $31-per-share price target. The firm said the hospitality company is underperforming in a slowing economy, while its assets are "prone to heightened trade down and promotion."
10. JPMorgan tweaks up its price target on Las Vegas Sands (LVS) to $72 a share, from $71, on higher earnings estimates for its Macao, China, operations. The bank maintained a buy rating on LVS shares. However, the Club continues to prefer Wynn Resorts (WYNN) for the Macao recovery.
(See here for a full list of the stocks in Jim Cramer's Charitable Trust.)
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.
