Markets soared on Monday, with the S&P adding 1.4% while the Dow rallied 1.7% coming off its worst week since last year. Asia markets closed higher overnight while Europe stocks are mixed this morning. U.S. futures are pointing to a higher open, the Dollar is higher while Yields, Oil, and Gold are lower.
The Dow soared the most in 3 months as rate worries eased. Today Powell testifies in front of the House Subcommittee on the Coronavirus Crisis, though prepared remarks are already out. Likely not a market mover. Crypto names continued their descent, with Bitcoin down 7% and near that $30k mark as I write this. Sure the bubble headlines will start coming out out of the woodworks from the usual bearish folks. Surprised Gold has held its ground. If it can get under that $1780 area today, think a break under $1700 is in the cards in the coming days - which would bode well for my DUST calls:
WOW found some buyers yesterday, closing up nearly 4%. Another test of that $18 handle should be the last, with all-time highs next:
WING looks interesting here with the stock finding support at the 50dma. Could see a move to $155+ in the coming days and higher in the coming week or two. Only monthly strikes but may look at some $165 calls at the open on any strength:
CDLX added another 4% yesterday. Premiums are tough with only monthly strikes but will continue to watch for a possible entry on some calls to play for a move to $135+:
TRUP looks like next leg is to $125. Watching again today for an entry and may add some July strikes:
Here are the analyst changes of note for today:
| Piper keeps $246 target on Moderna, sees 'several years' of Covid sales | |
| Piper Sandler analyst Edward Tenthoff reiterates an Overweight rating on Moderna with a $246 price target after the European Union ordered another 150M Covid vaccine doses, bringing the total order to 310M doses. The analyst forecasts "several years" of Covid vaccine sales when including boosters to retain long-term immunity and protection against emerging strains. He forecast smRNA-1273 revenues of $13.07B in 2021 and $21.25B in 2022 to drive Moderna's profitability and cash flow | |
| Calix named 'Best Smidcap Idea for 2021' at Cowen | |
| Cowen analyst Paul Silverstein says Calix is his "Best Smidcap Idea for 2021." The analyst sees an "outstanding long-term outlook" for CALX's operating model and shares, with "significant upside ahead" for both revenue growth and margins from its transformation into a software solutions-centric company. Calix's transformation remains early in its progress with "significant benefit still ahead" in driving an improved operating model in terms of both growth and profitability, Silverstein tells investors in a research note. He believes Calix's revenue growth and margin progression will "meaningfully outstrip" investor expectations and reiterates an Outperform rating on the shares with a $58 price target | |
| TransUnion price target raised to $119 from $115 at Morgan Stanley | |
| Morgan Stanley analyst Toni Kaplan raised the firm's price target on TransUnion to $119 from $115 and keeps an Overweight rating on the shares. Based on what she views as positive data points across non-mortgage financial services, emerging verticals, and consumer interactive, Kaplan said she has "growing confidence" that TransUnion will outpace its 7-9% organic growth guidance for the year. He has raised her own organic revenue estimate for the year to 10.1%, the analyst noted | |
| DoorDash price target raised to $195 from $175 at Needham | |
| Needham analyst Bernie McTernan raised the firm's price target on DoorDash to $195 from $175 and keeps a Buy rating on the shares. The analyst notes that the findings of his survey suggest that the company's delivery market share gains are "sticky" coming out of the pandemic, with his restaurant checks suggesting "sustained" elevated demand for delivery. Outside of restaurants, the opportunity remains in its "early days", but grocery is the "furthest along", McTernan tells investors in a research note | |
| KVH Industries initiated with a Buy at Needham | |
| Needham analyst Ryan Koontz initiated coverage of KVH Industries with a Buy rating and $14 price target. The analyst is positive on the company's efforts to expand its leadership in satellite mobile broadband services as it shifts toward a recurring revenue model and migrates customers from its legacy network. Koontz adds that he sees an opportunity for a return to sustained revenue growth driven mainly by the maritime segment over 2021-2022, forecasting 10% growth in both years along with operating margin improvements approaching breakeven | |
| TSMC initiated with a Buy at Argus | |
| Argus analyst Jim Kelleher initiated coverage of TSMC with a Buy rating and $150 price target. The company has an "aggressive" five-year capital spending plan and is emerging as a key solutions provider toward resolving bottlenecks in the global electronics supply chain, the analyst tells investors in a research note. Kelleher adds that he views TSMC as being is positioned for multiple years of "exceptional growth" given accelerated demand for traditional IT products, cyclical drivers such as 5G and cloud data center, along with longer-term drivers such as AI, IoT, and autonomous driving | |
| Cintas price target raised to $411 from $387 at Goldman Sachs | |
| Goldman Sachs analyst George Tong raised the firm's price target on Cintas to $411 from $387 and reiterates a Conviction Buy rating on the shares. Following a call with Joe Ricci, CEO of TRSA, the largest uniform rental trade organization in the U.S., Tong has a "strengthened view" of Cintas' growth outlook for uniform rentals and ancillary services. The analyst believes the domestic uniform rental industry is undergoing an "attractive recovery," with revenues on track to reach pre-Covid levels by the end of 2021. Sustained strength in hygiene demand, new hygiene customers into the non-programmer market for uniform rentals and penetration of the healthcare industry "represent structural tailwinds to top-line growth," Tong tells investors in a research note | |
| Netflix deal with Spielberg 'hardly appears as a game changer,' says Benchmark | |
| Benchmark analyst Matthew Harrigan maintains his Sell rating and $448 price target on Netflix after a new production agreement with Steven Spielberg's Amblin Partners that he calls "surprising to some" but which he views as one that "hardly appears as a game changer" given that Spielberg is maintaining his lot presence with Universal Pictures. The quality of content from Netflix's high profile acquired production talent has "sometimes been questionable," added Harrigan | |
| Sage Therapeutics price target lowered to $60 from $77 at Mizuho | |
| Mizuho analyst Vamil Divan lowered the firm's price target on Sage Therapeutics to $60 from $77 and keeps a Neutral rating on the shares. The analyst reduced sales estimates for Sage's zuranolone following results from the pivotal WATERFALL data. While technically positive from a statistical perspective, the data were disappointing to experts from a clinical perspective, Divan tells investors in a research note. The analyst now assumes 2030 U.S. probability-adjusted zuranolone sales of $1B in major depressive disorder, down from $1.6B | |
| Twilio price target raised to $424 from $410 at KeyBanc | |
| KeyBanc analyst Steve Enders raised the firm's price target on Twilio to $424 from $410 and keeps an Overweight rating on the shares. The firm's Key First Look Data shows strong underlying reopening trends for Twilio with Core 6 Consumer on Demand transactions up 65% y/y in 2Q21, Enders tells investors in a research note. Additionally, the analyst says conversations with partners outline ongoing cloud contact center adoption with Twilio's Segment strategy just emerging and could be underappreciated in consensus estimates | |
And here is what I am watching today: WING, SITE, TRUP, DUST, GLL, TREE, ABMD, FVRR, CDLX, and IRBT.
Let's have a GREAT DAY!
-JB