Notes
Wells Fargo's Q2 2025 Tactical Ideas list includes 10 stocks with key catalysts.
Overweight: $CHKP, $COF, $CPRI, $DLTR, $KKR, $LLY, $PTCT, $ROKU, $RYTM.
Underweight: $TSLA, citing weak auto fundamentals and overvaluation vs. the Magnificent 7. Notes Cybercab launch in June as unlikely due to limited testing.
#Upgrades - Nov 26, 2024
• $AIT: BofA Securities Upgrades to Buy from Neutral - PT $315 (from $285)
• $ALGT: UBS Upgrades to Neutral from Sell - PT $16
• $CHTR: BNP Paribas Upgrades to Neutral from Underperform - PT $360
• $CPRI: Guggenheim Upgrades to Buy from Neutral - PT $30
• $CORI: Guggenheim Upgrades to Buy from Neutral - PT $30
• $CVX: Citi Upgrades to Buy from Neutral - PT $185 (from $145)
• $EMN: Wells Fargo Upgrades to Overweight from Equal Weight - PT $125 (from $110)
• $HBI: UBS Upgrades to Buy from Neutral
• $ONB: Raymond James Upgrades to Strong Buy from Market Perform - PT $28
• $SAIC: Wells Fargo Upgrades to Overweight from Equal Weight - PT $147 (from $157)
• $UAL: UBS Upgrades to Buy from Neutral - PT $139
• $ZM: Evercore ISI Upgrades to Outperform from In Line - PT $115 (from $70)
RECAP
• $AAP Q3: Sales down 21% to $2.15B, below $2.67B forecast; EPS at -$0.04 vs. $0.49 expected. Plans include store and distribution center closures, and headcount cuts.
• $BZH Q4: Revenue up 25% to $806.2M vs. $777.8M expected; Adjusted EBITDA down 10.5%. Home closings up 4.8%, but gross margin decreased.
• $BV Q4: Adj. EPS $0.30 vs. $0.31 est., revenue slightly below at $728.7M. FY guidance lower than expected.
• $CPRI ends merger with Tapestry, which then ups its share buyback plan.
• $IBTA Q3: EPS $0.94 vs. $0.35 forecast, revenue up 16% to $98.6M. Q4 revenue guidance below expectations.
• $JJSF Q4: Adj. EPS $1.60 vs. $1.85 expected, sales slightly under $429.75M estimate.
• $HP Q4: EPS $0.76 vs. $0.81 expected, revenue $694M vs. $695.24M forecast. FY25 CapEx guidance $290M-$325M, depreciation around $400M, R&D $32M.
• $HI Q4: Adj. EPS $1.01 vs. $0.92 expected, revenue $837.6M vs. $792.98M. Q1 and FY25 EPS guidance below estimates.
• $OVV agrees to acquire Montney assets for $2.377B cash from Paramount Resources Ltd.
• $TTEK Q4: EPS $0.38 vs. $0.37 expected, revenue $1.37B vs. $1.135B. Provides next quarter and FY guidance.
• $NU Q3: Adjusted net income $592M vs. $559M est., revenue $2.9B as expected, ROE at 30%.
• $OPRX Q3: EPS $0.12 vs. $0.06 est., revenue $21.3M vs. $25M. FY guidance below expectations.
• $TARS Q3: EPS ($0.61) vs. ($0.97) est., sales $48.1M vs. $43.44M.
• $CSCO Q1: EPS $0.91 vs. $0.87, revenue $13.84B vs. $13.77B. Provides Q2 and FY guidance.
• $DIS Q2: EPS $1.14 vs. $1.10, revenue $22.57B vs. $22.47B. Forecasts high-single digit EPS growth for FY25.
• $ASML expects sales to reach €44B-€60B by 2030, with 8%-14% annual growth.
• $DDD Q3 prelim: Revenue about $113M, with growth in materials but decline in printer sales.
• $DIGI Q4: EPS $0.52 vs. $0.50, revenue $105.1M vs. $104.08M. Q1 guidance set.
• $JD Q3: EPS $1.24 vs. $1.05, revenue up 5.1% to $37.1B. No Q4 guidance.
• $KLIC Q4: EPS $0.34 vs. $0.35, revenue $181.3M vs. $180M. Announces share repurchase and dividend increase.
• $NN Q3: EPS ($0.11) vs. ($0.16), revenue $1.61M vs. $1.105M.
• $SONO Q4: EPS ($0.18) vs. ($0.41), revenue $255.38M vs. $247.36M. No forward guidance.
• $SYNA to issue $400M in convertible notes due 2031.
#Downgrades - Sep 13, 2024
$ASAI: BofA Securities Downgrades to Neutral from Buy - PT $9.10 (from $13)
$CPRI: Citi Downgrades to Neutral from Buy - PT $41
$CUBE: UBS Downgrades to Neutral from Buy - PT $54 (from $53)
$FULC: H.C. Wainwright Downgrades to Neutral from Buy - PT $4
$GMRN: Barclays Downgrades to Underweight from Equalweight - PT $133 (from $181)
$HAL: RBC Capital Downgrades to Sector Perform from Outperform - PT $37 (from $44)
$MRNA: JPMorgan Downgrades to Underweight from Neutral - PT $70 (from $88)
$MRNA: Jefferies Downgrades to Hold from Buy - PT $65 (from $120)
$MRNA: Oppenheimer Downgrades to Perform from Outperform
$NBR: Citi Downgrades to Neutral from Buy - PT $75 (from $110)
$RLJ: Wells Fargo Downgrades to Underweight from Equal Weight - PT $9 (from $11)
$VOYA: Raymond James Downgrades to Market Perform from Strong Buy