It was another lackluster session for markets on Tuesday, with the indexes closing mixed. Under-the-hood the meme/reddiit craze was alive and kicking with highly shorted stocks rocketing. Asia market closed mixed overnight while Europe stocks are lower this morning. U.S. futures are pointing to a higher open, the Dollar, Yields, and Gold are lower while Oil is higher.
And this is what UPB is reading this morning: Wednesday Morning Reads
And a nice little opinion piece on inflation: https://www.bloomberg.com/opinion/articles/2021-06-09/covid-inflation-markets-are-ignoring-the-main-driver-of-today-s-price-gains?sref=lKInCXNX
IRBT closed back over $100 yesterday. Will need to break $102 and close around or above $105 today or I may look to close the rest of my weekly calls and roll them into higher strikes for next week. Think it is only a matter of time before this catches a squeeze:
LOCO closed up over 2% yesterday and I was able to close some of my calls to cover costs. May find some resistance at $18 but if it can clear that level, could see some buyers. They present at a virtual fireside chat today at 12;15 so could also provide a catalyst, here is the link : https://kvgo.com/2021-baird-global-cts/el-pollo-loco-holdings-inc-june-2021
ICPT is setting up nicely. They announced a new CMO this morning... ironically enough she was the CMO of a company bought out by GILD for $11 billion back in 2011. Not saying this portends a buyout is coming but think it could help spark a further rally in the stock. Would not be surprised to see $24+ in the coming days. May look for some later dated calls as well today:
EVBG held up yesterday, closing up 2.5%. A break over that $120 handle should send it. They also present tomorrow at the BAC Tech conf with could bid up the stock. Will look to close some of my calls out for 100% to cover costs when I get the chance and hold the rest:
SHW could be a nice bounce play on any weakness so will be watching that one today:
CMG presented at the Baird conference yesterday. Surprised no analyst changes this morning. Either way, this one is ready to explode any day now:
Also watching VRTX, SAGE, SPOT, and TWLO.
Here are the analyst changes of note for today:
| Seagate price target raised to $112 from $95 at Craig-Hallum | |
| Craig-Hallum analyst Christian Schwab raised the firm's price target on Seagate to $112 from $95 and keeps a Buy rating on the shares. The analyst notes Seagate positively updated its Q4 quarter guidance prior to presenting at an investor conference. The company is seeing incremental strength compared to its previous expectations from new cryptocurrency-driven demand, Schwab adds | |
| Morgan Stanley would be buyers on any Sherwin-Williams weakness due to guidance | |
| Morgan Stanley analyst Vincent Andrews said he would be a buyer on any weakness if it is seen in Sherwin-Williams shares given that the company's updated 2021 EPS guidance is in-line with consensus. He believes that investors should focus more on 2022 consensus, which we views as about 10% too low, and thinks Q2 to Q3 will be "the peak point of pain" when Sherwin will see the most raw material cost pressure while achieving the least amount of price realization. Andrews keeps an Overweight rating and $315 price target on Sherwin-Williams shares | |
| Etsy pullback creates 'compelling buying opportunity,' says Jefferies | |
| Jefferies analyst John Colantuoni lowered the firm's price target on Etsy to $245 from $260 and keeps a Buy rating on the shares after the company's Q2 EBITDA margin guidance came in 350 basis points below prior consensus. He thinks this has been a key overhang as the market is concerned that Q2 guidance could be a negative indicator for 2022 EBITDA, but Colantuoni believes Etsy is investing near-term and that the 2021 margin contraction is temporary. Given this view, and the 30% downside in the stock since early March, Colantuoni tells investors that he sees "a compelling buying opportunity" in Etsy shares at current levels | |
| UiPath price target raised to $75 from $70 at Canaccord | |
| Canaccord analyst David Hynes raised the firm's price target on UiPath to $75 from $70 and keeps a Hold rating on the shares. The analyst said there were no surprises in its first report as a public company but due to valuation he is maintaining his rating and also said its lockup expiration on June 10 will create some additional sellers perhaps providing a buying opportunity | |
| Ruth's Hospitality price target lowered to $29 from $33 at Stephens | |
| Stephens analyst James Rutherford lowered the firm's price target on Ruth's Hospitality to $29 from $33 and keeps an Overweight rating on the shares. Rutherford notes that full service restaurant multiples are now about 15% higher than where they were at the start of the pandemic and he expects that group to underperform the low service, or fast food, group for the rest of the year | |
| Cheesecake Factory price target lowered to $55 from $60 at Stephens | |
| Stephens analyst James Rutherford lowered the firm's price target on Cheesecake Factory to $55 from $60 and keeps an Equal Weight rating on the shares. Rutherford notes that full service restaurant multiples are now about 15% higher than where they were at the start of the pandemic and he expects that group to underperform the low service, or fast food, group for the rest of the year | |
| Stephens suspends Wendy's price target due to 'speculative trading environment' | |
| Stephens analyst James Rutherford said Wendy's remains his Best Idea with an Overweight rating, but he is temporarily suspending his price target due to what he calls "the recent speculative trading environment." For the restaurant space more broadly, Rutherford notes that full service restaurant multiples are now about 15% higher than where they were at the start of the pandemic and he expects that group to underperform low service, or fast food, group for the rest of the year | |
| DexCom remains top pick after 'bullish' meetings at JPMorgan | |
| JPMorgan analyst Robbie Marcus says recent meetings with DexCom management renewed his "bullish stance" on the company's positioning, especially ahead of a G7 launch later this year. The analyst likes the near-term setup as well as long-term outlook for the shares, and continues to view DexCom as a "top pick here." He keeps an Overweight rating on the shares with a $450 price target | |
And here is what I am watching today: SHW, CMG, VRTX, SAGE, ICPT, FUBO, TWLO, TRIP, and SSYS.
Let's have a GREAT DAY!
-JB