Markets rallied to start the week, with the S&P adding 1.4% and closing at another all-time high. Asia markets closed mixed overnight while Europe stocks are higher this morning. U.S. futures are pointing to a slightly lower open, the Dollar, Oil, and Gold are higher while Yields are lower.
And this is what UPB is reading this morning: Tuesday Morning Reads
I added some SHW calls yesterday with the stock showing signs of continuing its post-split rally. Will look to lock some in to cover costs today holed the rest for a possible move into the $265-$270 level:
PTON has been stuck under $120 for a month now and is $60 off its 2021 highs. Would think this starts trading north into its earnings in May as the company starts to remove the backlog. Will be watching for some possible speculative weekly calls and/or some later states strikes today:
WIX trade higher yesterday but seems stuck after the opening gap, Still watching for some calls here for a move back to $320+ in the next few weeks:
Still watching CMG for that $1500+ move, calls are pricey so being patient:
And REGN:
Almost added some TREE calls on the gap yesterday. It reversed the morning gains to turn red before bouncing in the afternoon. If it can hold $225 today will add some $250/260 calls:
Here are the analyst changes of note for today:
| Varonis initiated with an Outperform at FBN Securities | |
| FBN Securities analyst Shebly Seyrafi initiated coverage of Varonis with an Outperform rating and $65 price target | |
| Illumina price target raised to $460 from $445 at Canaccord | |
| Canaccord analyst Max Masucci raised the firm's price target on Illumina to $460 from $445 and keeps a Buy rating on the shares. The analyst said he was positively surprised by the magnitude of its Q1 beat and raised guidance. He came away with increased conviction that the company's business stands to accelerate meaningfully in the back side of the pandemic | |
| AB InBev named 'Catalyst Call - Sell Idea' at Deutsche Bank | |
| Deutsche Bank analyst Mitch Collett initiated a "catalyst call Sell" on AB InBev saying there is downside risk to consensus estimates for both Q1 and fiscal 2021 due to margin pressure from currency, rising commodities, and rising freight and canning costs with packaging supply being shifted across borders in both the U.S. and Mexico. While AB InBev continues to trade at a discount to European Staples, the discount represents the trade-offs between the company's long-term growth opportunity and market dominance balanced against its elevated debt and above-average volatility, Collett tells investors in a research note | |
| Domino's Pizza refinancing should be accretive to earnings, says Baird | |
| Baird analyst David Tarantino noted Domino's Pizza announced plans to recapitalize its balance sheet via a refinancing transaction that would add to debt and provide excess capital that can be returned to shareholders. The analyst assumes if the company uses the net proceeds to repurchase stock at current levels, he estimates it could prove to be 1-2% accretive. Tarantino maintained his Outperform rating and $455 price target on Domino's Pizza shares | |
| Morgan Stanley raises Services forecast for Apple, trims price target to $156 | |
| Morgan Stanley analyst Katy Huberty has raised her "already above-street" Services revenue forecast for Apple (AAPL) in FY21 and FY22 to account for accelerating Google (GOOGL) TAC-related revenue growth, but has lowered the firm's price target on Apple to $156 from $164 to reflect peer multiple compression. The analyst, who said she is increasingly convinced that consensus Services forecasts over the next two-plus years are too low, now forecasts Apple Services revenue growth of 22% year-over-year in FY21, which she notes is ahead of the FY21 consensus Services growth forecast of 18%. Huberty keeps an Overweight rating on Apple shares | |
| Chipotle price target raised to $1,462 from $1,437 at Deutsche Bank | |
| Deutsche Bank analyst Brian Mullan raised the firm's price target on Chipotle Mexican Grill to $1,462 from $1,437 and keeps a Hold rating on the shares. The analyst thinks investor expectations call for a slightly above the 16.8% consensus Q1 same-store-sale result. Weather concerns earlier in the quarter have subsided in recent weeks, given both stimulus checks as well as the nationwide launch of quesadillas on March 11, Mullan tells investors in a research note | |
And here is what I am watching today: WIX, PTON, REGN, BIIB, CMG, SPOT, TWLO, WOW, and TREE.
Let's have a GREAT DAY!
-JB