Markets closed higher on Thursday, with the S&P adding .23% in a choppy session. Asia markets closed lower overnight while Europe indexes are also in the red this morning. U.S. futures are pointing to a lower open, the Dollar and Yields are higher while Oil and Gold are lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-83/
It was a choppy session on Thursday, with stocks swinging between gains and losses before finally closing higher. This morning futures are pointing to a rough open with no true catalyst to speak of. As I mentioned last few days, would prefer some churn here in the $420s before the next leg and looks we are getting it. Would like to see that $425 handle today and then think $430 break will come next week:
ICPT closed up another 5% yesterday, nearing the key $20 resistance. This morning they announced they were repurchasing $328 million of their convertible debt. After the transaction they will still have over $500 mil in cash and will prevent over 6 million shares of dilution. A win/win. Some folks thought ICPT was going to need to do another offering in the coming months, this 100% puts that argument to rest. Hard to think this does not squeeze again today unless shorts get to work. Think a move into the mid-high $20s comes in the next few weeks, if not higher. Will look to close some of my calls out today to cover costs and ride the rest. I am extremely bullish the name but who knows what can happen with this market:
I added some ULTA calls yesterday as the stock held the $400s and EL was able to reverse morning losses to head higher despite its weaker guidance. The plan is to be able to sell some/all of my ULTA calls before they report next week and will use the $400 handle as a possible stop:
Still holding some TRIP calls and will look to sell them at the open and may look for some later dated strikes for an eventual move over $30:
It was a lackluster session for IIPR after it failed to break its 50dma. Still have plenty of time on my calls and think this its over $110(and higher) in the next week or two:
Still eyeing some YOU calls here as well, especially if it can hold $27.50 or so today. The September $35s look interesting on a risk/reward basis:
And will be eyeing the typical Friday lotto plays like SPOT, TWLO, and ROKU.
Here are the analyst changes of note for today:
| Citi upgrades Foot Locker to Neutral on Mary Dillon CEO development |
| Citi analyst Paul Lejuez upgraded Foot Locker (FL) to Neutral from Sell with a price target of $38, up from $25, following the news that former Ulta Beauty (ULTA) CEO Mary Dillon is taking over the role of CEO. With Foot Locker's "business in a tough spot" given Nike's (NKE) plan to reduce allocation of premium product, Dillon's "proven leadership should be viewed very favorably by the market," Lejuez tells investors in a research note. The analyst says Dillon put Ulta "on the map" in prestige cosmetics and skincare by gaining access to sought after brands and driving years of strong growth with margin expansion. While her presence may not be enough to reverse Nike's direct-to-consumer strategy, her successful track record makes it more likely that Foot Locker "will forge a lasting, profitable relationship with Nike," writes Lejuez. The analyst now sees a balanced risk/reward on Foot Locker shares, which are trading up 24% to $39.56 in premarket trading. |
Bill.com price target raised to $222 from $200 at JPMorgan |
| JPMorgan analyst Tien-tsin Huang raised the firm's price target on Bill.com to $222 from $200 and keeps an Overweight rating on the shares. The company posted a "strong beat and raise, and impressively introduced" a fiscal 2023 outlook featuring not only best in class 50%-plus revenue growth, but also breakthrough profitability for the year, which is earlier than Street expectations, Huang tells investors in a research note. He says Bill.com remains his top growth idea |
| Buy Celsius Holdings on stock weakness, says Jefferies Jefferies analyst Kevin Grundy remains bullish on Celsius Holdings (CELH) following its long-term strategic distribution partnership with PepsiCo (PEP), as the deal will help Celsius gain scale, accelerate its market share momentum, and augment its international strategy. The analyst, who made no change to its Buy rating and $125 price target, would be a buyer of any stock weakness in the months ahead on distributor transition "noise.Evolent Health price target raised to $52 from $37 at JPMorgan |
| JPMorgan analyst Anne Samuel raised the firm's price target on Evolent Health to $52 from $37 and keeps an Overweight rating on the shares. Evolent has announced 10 partnerships year-to-date, which is well above its target for 6-8, Samuel tells investors in a research note. The analyst now sees 24% revenue growth for next year, above the company's mid-teens target, with EBITDA margins of 9%-10%, versus its long-term mid-teens target. However, she sees upside to her analysis, noting we are only halfway through the year, with the company likely to add incremental pa1tnerships |
Expedia price target raised to $112 from $108 at UBS |
| UBS analyst Lloyd Walmsley raised the firm's price target on Expedia to $112 from $108 but keeps a Neutral rating on the shares. The analyst cites his model update with an eye on the company's "marketing pivot" |
BJ's Wholesale price target raised to $71 from $65 at Morgan Stanley |
| Morgan Stanley analyst Simeon Gutman raised the firm's price target on BJ's Wholesale to $71 from $65 and keeps an Equal Weight rating on the shares. BJ's reported a strong Q2 with potentially more upside coming in 2H, as the business continues to benefit from an inflationary macro and value-conscious customer, paired with solid execution, Gutman tells investors in a research note. At the same time, the analyst says the stock looks fairly balanced at current levels |
| Cisco price target raised to $54 from $51 at Deutsche Bank |
| Deutsche Bank analyst Matthew Niknam raised the firm's price target on Cisco to $54 from $51 and keeps a Hold rating on the shares. The company's Q4 results included more constructive messaging around orders/customer demand and top-line trends, Niknam tells investors in a research note |
And here is what I am watching today: TRIP, ICPT, YOU, SPOT, TWLO, ROKU, SAGE, and BIIB.
Let's have a great day!
-JB