Welcome to the 4th Quarter. Stocks are set to open higher this morning after hitting multi-year lows on Friday. S&P futures are pointing to .80% higher open as I write this while Nasdaq futures are 40% higher. Asia markets closed mixed overnight while Europe indexes are following suit. The Dollar and Yields are lower while Oil and Gold ar higher.
Futures are pointing to a bounce this morning, after a rough few weeks that has seen the S&P close lower in 10 of the past 12 sessions. There is also an increase in articles this weekend saying this is just the beginning of a market crash. As I have been saying for a while, I think a recession is mostly priced in and pending any black swan event, think there will be more more opportunities to the upside then the downside into the end of the year. Not saying the market has found a bottom just yet, just will be looking to play bounces as opposed to trying to chase puts for downside. Would want to see a revisit of the $360s on the SPY and maybe the market can find some footing into the Q4 earnings season that starts next week:
APRN is gapping lower this morning after they announced a $15 mil financing deal that could be construed as dilution. It is like the shorts are trading the name as if it is going to zero. Still mind-boggling to me. Not going to add anything yet but do not think the story has not changed at all and it will be much higher in the coming weeks and monthsL
AMLX and ICPT both received positive analyst commentary this morning. Still like both for higher here:
ICPT:
It was a rough two days for BJ last week, closing off another 2% on Friday. Still think this finds some footing and eventually hits all-time highs in the next week or two:
WING closed slightly in the red on Friday despite the market weakness. A great setup here for a move to $150+ in the next week or two:
And lastly, still watching U, TWLO, ROKU, and SPOT for bounces.
Here are the analyst changes of note for today:
| Walgreens Boots Alliance price target lowered to $32 from $41 at Evercore ISI |
| Evercore ISI analyst Elizabeth Anderson lowered the firm's price target on Walgreens Boots Alliance (WBA) to $32 from $41 and keeps an In Line rating on the shares after lowering her FY23 EPS estimate to $4.25 from $4.60 following Rite Aid's (RAD) report of fiscal Q2 results last week. She expects Walgreens to likely shares its FY23 outlook when the company reports on October 13 and expects the FY23 EPS "bridge to be messy," with the potential for an adjustment to the company's longer-term growth algorithm, Anderson tells investors |
| Intercept price target lowered to $35 from $52 at Baird |
| Baird analyst Brian Skorney lowered the firm's price target on Intercept to $35 from $52 and keeps an Outperform rating on the shares. The analyst lowered his target following the failure of its cirrhotic NASH study. He said despite a sicker patient population, there didn't appear to be any emergent safety concern |
| Citi ups Amylyx target, sees buying opportunity after selloff |
| Citi analyst Neena Bitritto-Garg raised the firm's price target on Amylyx Pharmaceuticals to $50 from $48 and keeps a Buy rating on the shares. The analyst updated her model on full FDA approval for AMX0035, now Relyvrio. The final net price of $158,000 per year, below the $170,000 price for edaravone, "should enable rapid payer discussions and garner goodwill from physicians/patient advocacy groups, driving rapid uptake in demand and sales recognition," Bitritto-Garg tells investors in a research note. The analyst says continued weakness in the shares on financing overhang and the PHOENIX readout concerns "sets up an attractive upside into initial launch numbers" and European approval. Bitritto-Garg sees a buying opportunity at current Amylyx shared levels |
Alibaba price target lowered to $135 from $161 at Barclays |
| Barclays analyst Jiong Shao lowered the firm's price target on Alibaba to $135 from $161 and keeps an Overweight rating on the shares. The analyst tweaked estimates ahead of the September quarter results and suggests investors build or add positions ahead of the People's Congress. Expectations are low for any meaningful positive news from the Congress, Shao tells investors in a research note. The analyst cites recent Chinese yuan weakness for the target cut. Alibaba shares are "significantly cheaper than their intrinsic values," Shao tells investors in a research note. The analyst believes the company's conversion to dual-primary listing status in Hong Kong is on track to be completed by December, and that there is a possibility for inclusion in the Stock Connect program to be fast tracked. Shao also believes the overhang on shares due to recent forward share sales by Softbank should start to abate as the real economic interest in the shares held by Softbank "may have dwindled |
And here is what I am watching today: TWLO, ROKU, SPOT, TZA, GNRC, WYNN, BIIB,, WIX, BJ, U, LVS, ICPT, CI, CMG, HUM, TRIP, SAGE, and PTCT.
Let's have a great day!
-JB