Futures are pointing to a flat open as I write this, with S&P futures down .01% on the heels of a week that saw the S&P gain .61%. Asia markets closed mixed overnight while Europe stocks are in the green this morning. The US dollar, Oil, and Gold are lower while Yields are higher.
And this is what UPB is reading this morning: Monday Morning Reads
Earnings seasons winds down this week, here are some of the implied moves:
Some implied moves for #earnings next week :$GME 24.2%⁰$RH 9.9%⁰$CHWY 9.2%⁰$MRVL 5.9%$COUP 8.2%$LOVE 15.9%⁰$PLAY 10.4%⁰$CVGW 8.5%$SFIX 18.6%⁰$MOMO 10.7%⁰$ASO 14.2%⁰$THO 8.9%⁰$NAV 6.5%⁰$JFIN 28.9%⁰$FCEL 16.0%⁰$ASO 14.2%⁰$GIII 13.6%$SIG 12.8%$CPB 4.4%
— Option Millionaires (@OMillionaires) June 6, 2021
The big data point of the week will be inflation numbers due out on Thursday. I think expectations are high so could spark a rally if the number are inline or lower.
I locked most of my EVN calls in for 350%+ as the stock soared over 10% on Friday. I still hold a few calls and will look to close them out if the stock fails to hold $78. Other wise will hold for the $85 test:
WOW churned after its rally on Thursday, testing the $18 handle before closing flat. Once that $18 level falls, it should be off to the races. Will look to close some of my calls for 100% to cover costs and hold the rest:
I am back in LOCO calls. LOCO has been churning in a tight range since April and looks ready to finally breakout. They have a fireside chat on June 9th with Baird so could help put a bid in the stock. Think $18+ is coming in short order:
EVBG is trading near 2021 lows - mind-boggling to me. The stock also sports a hefty 13% short interest. If anything, Covid has accelerated company/municipalities/counties budgets into EVBG's space. Think this trades north of $125 in the coming days:
The Bio sector can find some legs this week if the FDA approves BIIB's drug today. Some names that could find a bid that I may add some calls on: LABU, IBB, BLUE, SAGE, SRPT, and possibly ICPT.
Here are the analyst changes of note for today:
| Wedbush remains 'firmly bullish' on Tesla, EV thesis despite speed bumps | |
| Wedbush analyst Daniel Ives acknowledges that investor fears continue to surround the Tesla (TSLA) story with China demand worries front and center for the Street after a "horrific" April performance and now concerns about the month of May percolating. Ives notes that only 5% of auto sales in China are EV driven today and believes this transformational consumer demand will see a doubling of EV deliveries in this key region over the next two years with Tesla a major beneficiary along with domestic pure plays NIO (NIO), Xpeng (XPEV), Li Auto (LI), and others. While Q2 has clearly got off to shaky start for Tesla in China which has remained very bumpy, the analyst thinks the pent up demand story remains firm for Tesla for the next few years and has a high level of confidence that the company will turn this softer sales trend around heading into the month of June/second half of the year, with Model Y sales a key driver along with the mainstay Model 3. Ives has an Outperform rating and a price target of $1,000 on Tesla's shares | |
| Snowflake faces 'high bar' to impress at analyst day, says Morgan Stanley | |
| Ahead of Snowflake's inaugural analyst day on June 10, Morgan Stanley analyst Keith Weiss said he expects the presentation to focus on sketching out the large total addressable market, or TAM, and a potential product roadmap addressing those opportunities; laying out the path to $10B in revenue and the trajectory of $1M+ customer growth needed to get there; and an update on the go-to-market strategies and technology partner ecosystem. While he sees five potential building blocks for Snowflake to reach a $152B TAM by 2024, Weiss said the "lofty expectations investors have for the durability of growth" have set a "high bar for management to impress investors at analyst day." He has an Equal Weight rating and $270 price target on Snowflake share | |
| iPower initiated with a Buy at Roth Capital | |
| Roth Capital analyst Scott Fortune initiated coverage of iPower (IPW) with a Buy rating and $9 price target. The analyst notes that iPower is a leading online hydroponics retailer with a 67%-plus in-house branded product mix, producing consolidated gross margins of over 37%. iPower uses data to develop products in the hydroponic category where it is currently a leading third-party online supplier on Amazon (AMZN), while optimizing low-cost sourcing, price, and fulfillment to drive margins, Fortune adds. The analyst sees margin upside to come from additional private label launches and increased Zenhydro website traffic | |
| Mosaic price target raised to $33 from $28 at Scotiabank | |
| Scotiabank analyst Ben Isaacson raised the firm's price target on Mosaic (MOS) to $33 from $28 and keeps a Sector Perform rating on the shares. The Street will need to revisit Mosaic's 2021 EBITDA outlook with potash hitting fresh highs and news that India will more than double its di-ammonium phosphate subsidy, "almost certainly preventing demand destruction," Isaacson tells investors in a research note. The analyst is "becoming increasingly confident" that the Street's $2.7B estimate is too low. Further, Isaacson thinks now is the time for Vale (VALE) to monazite its 34.2M Mosaic common shares. The analyst believes Mosaic has "ample" free cash flow to buy back Vale's 9% stake | |
| Dick's Sporting price target raised to $110 from $92 at Argus | |
| Argus analyst Chris Graja raised the firm's price target on Dick's Sporting to $110 from $92 and keeps a Buy rating on the shares. The analyst cites the company's "much stronger" than expected Q1 earnings beat and guidance raise reported last month, also boosting his FY22 EPS view to $8.40 from $5.07. Dick's has been "very proactive" in terms of its response to the pandemic, and its management should keep its merchandising "sharp" over the next year, Graja tells investors in a research note | |
| Amgen price target raised to $277 from $272 at Oppenheimer | |
| Oppenheimer analyst Jay Olson raised the firm's price target on Amgen to $277 from $272 and keeps an Outperform rating on the shares. The analyst notes Amagen hosted an investor event at the American Society of Clinical Oncology meeting, highlighting clinical progress on Lumakras, bemarituzumab, and tarlatamab. Updated CodeBreaK 100 Phase 2 data for sotorasib in NSCLC demonstrated a median PFS of 6.8 months and median OS of 12.5 months at a median follow-up of 15.3 months, Olson adds. The analyst is also "encouraged" by the tarlatamab update, showing early but promising efficacy and safety profile in SCLC patients | |
And here is what I am watching today: LABU, IBB, BLUE, ICPT, SRPT, SAGE, IRBT, BLK, and SSYS.
Let's have a GREAT DAY!
-JB