Early Look

Friday, May 22, 2026

Global markets are higher heading into Friday, as the S&P 500 remains on track for its 8^th straight winning week as markets waited an update on US-Iran peace talks a day after stocks rebounded after Secretary of State Marco Rubio and Iranian media signaled progress on negotiations between the US and Iran for a peace deal. On Thursday, the S&P 500 rose by 0.2%, while the tech-heavy Nasdaq Composite added 0.1% following earnings from Nvidia and an S-1 filing for the upcoming IPO of SpaceX on Wednesday afternoon. The Dow Jones Industrial Average managed a 0.6% advance to close at a new all-time highs. The Russell 2000 Smallcaps outperformed, rising +0.9%. Hopes that the end of the war could be on the horizon emerged after Iranian media said a finalized deal that would guarantee passage through the Strait of Hormuz and implement a ceasefire would be announced imminently. In Asian markets, The Nikkei Index surged 1,654 points or 2.68% to 63,339, the Shanghai Index advanced 35 points to 4,112, and the Hang Seng Index climbed 219 points to 25,606. In Europe, the German DAX is jumping 205 points to 24,811, while the FTSE 100 is up 48 points to 10,492. Despite the reports late yesterday, no agreement has been reached to this point. Markets started the week on a down note, with concerns of persistent inflation stoking worries about Federal Reserve rate hikes. The week has been led by more than 2% gains in defensive sectors Utilities (XLU), REITs (XLRE) and Healthcare (XLV).

• The Dow Jones Industrial Average rose 276.31 points, or 0.55%, to 50,285.66
• The Nasdaq Composite gained 22.74 points, or 0.09%, to 26,293.10
• The Russell 2000 Index advanced 26.09 points, or 0.93% to 2,843.45

• 10:00 AM ET                 University of Michigan 1-yr and 5-yr inflation expectations
• 10:00 AM ET                 Leading Index Change M/M for April
• 1:00 PM ET                    Baker Hughes Weekly rig count data

• @lisaabramowicz1 noted on X, “Kevin Warsh is facing the highest yields on 10-year Treasuries on his swearing-in date of any Fed chair going back to Alan Greenspan in August 1987.”
• @Bluekurtic noted on X, “Since the March bottom, mega caps have led the rally. Over the past 6 weeks, market weighted $SPX has outperformed equal weighted by 8.5%. This is the highest margin in the data going back to 2003.”

• Deckers Outdoors (DECK) Q4 EPS $0.96 vs est $0.83 on sales $1.12B vs est $1.09B, with gross margin 57.6%, sees FY sales $5.86B–$5.91B vs est $5.82B with gross margin 56.5% and EPS $7.30–$7.45 vs est $7.35, increases share repurchase authorization to about $5B, and from 2028 to 2030 targets high‑single‑digit annual growth in net Consolidated sales and low‑double‑digit EPS growth when combined with the ongoing buyback.
• Estee Lauder (EL) shares jumped after the company and Puig (PUGBY) confirmed they were in discussions regarding a potential business combination, but unless and until an agreement was signed, there could be no assurances regarding the deal or its terms. Following the termination of negotiations, Estée Lauder reaffirmed its focus on its “Beauty Reimagined” strategy, emphasizing continued execution as an independent company.
• Flowers Foods (FLO) Q1 Net Sales rose 1.1% y/y to $1.57B and adj EPS was $0.29 vs. est. $0.26; Q1 adj Ebitda fell -1.8% y/y to $159M and net income fell -20.6% y/y to $42.1M; sees FY26 adjusted EPS $0.80-$0.90 vs. est. $0.83 on revs $5.16B-$5.26B vs. est. $5.19B and FY26 adjusted EBITDA $465M-$495M.
• IMAX (IMAX) shares rise after reports the company has approached other entertainment companies as potential buyers and the sale process is still in the early stages, The Journal reported, citing people familiar with the situation. The sale talks come as premium theater experiences are growing faster than the overall box office https://tinyurl.com/5n6pat6y
• Ross Stores (ROST) Q1 EPS $2.02 vs est about $1.72 on sales $6.01B vs est about $5.64B, with operating Income $804M (operating margin 13.4%) and pretax profit $837.5M on net Income about $650M, raises FY2026 EPS guidance to $7.50–$7.74 (up about 13%–17%) and sees FY2026 same‑store sales growth about 6%–7% on top of a 5% gain in 2025, while guiding Q2 EPS about $1.85–$1.93 vs est $1.79 with comp‑store sales up about 6%–7%.

• Matador Resources Company (MTDR) announces a $1.1B expansion of its premier Delaware Basin asset base in Southeast New Mexico through the recent BLM Lease Sale. The company acquired 5,154 net undeveloped acres, all of which are in the 'core-of-the-core' of the Delaware Basin, strategic to Matador's current acreage position.
• Perpetua Resources (PPTA) secures $2.9 billion us loan for Idaho Gold, Antimony project – CNBC reported.

• LPL Financial (LPLA) April end of month total client assets were $2.48T, an increase of $141.4B, or 6.1%, compared to the end of March. Advisory assets as a percentage of total assets increased to 59.8%, up from 54.7% a year ago. Total organic net new assets for April were $3.1B, translating to a 1.6% annualized growth rate.
• Webull (BULL) Q1 EPS reported at $0.03, in-line with consensus and revs rose 36% y/y to $159.9M tops consensus $157.67M; Q1 Trading-related revenue increased 36% y/y; total operating expenses increased 68% y/y, primarily driven by higher marketing and branding expenses, brokerage and transaction costs; DARTs increased to 1.3M, representing 42% y/y growth; Customer assets totaled $24 billion, representing 90% y/y growth.

• Take-Two (TTWO) Q4 EPS -$0.32 vs est about -$0.57 on revenue $1.68B vs est about $1.57B, with net Income -$59.5M and net bookings $1.58B, sees Q1 EPS about -$0.23 to -$0.15 on revenue about $1.45B–$1.50B vs est about $1.51B and net bookings about $1.32B–$1.37B, and guides FY EPS about $0.55–$0.75 with revenue about $7.9B–$8.1B vs est about $9.10B, FY net bookings about $8.0B–$8.2B and CAPEX about $200M.
• Workday Inc. (WDAY) Q1 adj EPS $2.66 tops consensus $2.51 and Q1 revs $2.54B above consensus $2.52B; reiterating FY27 subscription revenue outlook of $9.92B-$9.95B while increasing FY27 non-GAAP operating margin guidance to 30.5%; Q2 Subscription revenue +14.3% y/y and subscription backlog $27.3B, up 10.9%
• Zoom Communications (ZM) Q1 EPS $1.55 tops consensus $1.42 and revs rose 5.5% y/y to $1.24B vs. est. $1.22B; Q1 online average monthly churn of 3.0%; said AI Companion paid users growing 184% y/y, and My Notes reaching 1.5 million licensed users within just four months of launch; sees Q2 EPS $1.45-$1.47 vs. consensus $1.47 and sees Q2 revenue $1.265B-$1.27B, vs. consensus $1.27B; increase buyback by $1B in shares.

Mid-Morning Look

Friday, May 22, 2026

U.S. stocks on cruise control, with the Dow Jones Industrial Average, and S&P 500 hitting new all-time highs as oil prices fall (initially) on rising optimism about a deal between the U.S. and Iran coming soon following upbeat commentary, with hopes the Strait of Hormuz reopens, lowering inflation fears as Treasury yields ease a second day after surging the last few weeks. Gold on track for second weekly loss as the US dollar trades near 6-week highs. Good bounce in beaten up software names as WDAY and ZM report better earnings/guidance overnight. Iran's foreign minister met Pakistan's interior minister on Friday to discuss proposals to end the U.S.-Israeli war, Iranian media reported. Tehran and Washington remain at odds over Tehran's uranium stockpile and controls on the Strait of Hormuz. With the US and Iran both still committed to end the war via diplomacy, oil prices continue to trade well below this week’s highs set on Monday. Oil has since bounced, now up on the day after tumbling Thursday, but major US averages remain buoyed by tech as XLK +1% among leaders with Healthcare (XLV +1.35), but 10 of 11 S&P sectors higher. Just higher for longer for stocks while sentiment data comes in weak and inflation expectations rise.

• University of Michigan surveys of consumers 1-year inflation outlook final May 4.8% vs prelim 4.5% and final April 4.7%. University of Michigan surveys of consumers 5-year inflation outlook final May 3.9% vs prelim 3.4% and final April 3.5%.

• In Restaurants: SG was upgraded to Overweight from Neutral at JP Morgan and raise tgt to $13 from $8 following an encouraging meeting with management saying under new management, Sweetgreen has been aggressive at adopting new products people actually want to eat, like wraps. CAVA was upgraded to Buy at Argus after earnings noting restaurant traffic is improving and the stock trend has turned bullish, gaining 18% the last 3 months compared to a gain of 8% for the S&P 500.
• Quantum stocks RGTI extend gains a day after media reports The Trump administration is awarding $2B in grants to nine Quantum-computing companies, including U.S. government equity stakes. IBM will receive $1B of the package, with GlobalFoundries (GFS) getting $375M. D-Wave Quantum (QBTS), Rigetti Computing (RGTI), and Infleqtion (INFQ) are also expected to be awarded funds. Under the terms of the deals, which still need to be finalized, the government will receive a minority equity stake in each Quantum company. Shares of other quantum names IONQ, QMCO, QUBT BTQ also seeing recent momentum.

• EL +12%; after the company and Spanish beauty group Puig (PUBGY) said they have terminated discussions of a potential business combination. Following the termination of negotiations, Estée Lauder reaffirmed its focus on its “Beauty Reimagined” strategy, emphasizing continued execution as an independent company.
• IMAX +16%; after reports the company has approached other entertainment companies as potential buyers and the sale process is still in the early stages, The Journal reported, citing people familiar with the situation. https://tinyurl.com/5n6pat6y
• MRK +4%; said its antibody-drug conjugate developed by China’s Kelun-Biotech was dramatically more potent than Keytruda alone in a Phase 3 lung cancer study. Sacituzumab tirumotecan, licensed by Merck, cut the risk of tumor progression by 65% in patients with newly diagnosed non-small cell lung cancer with PD-L1 expression when it was combined with Keytruda, compared to Keytruda alone.
• ROST +7%; shares rallied on results as reported an earnings beat, driven by comps of up 17% and raised its annual comparable sales and profit forecast; raises FY2026 EPS guidance to $7.50-$7.74 (up about 13%-17%) and sees FY2026 same‑store sales growth about 6%-7%.
• SG +8%; was upgraded to Overweight from Neutral at JP Morgan and raise tgt to $13 from $8 following an encouraging meeting with management saying under new management, Sweetgreen has been aggressive at adopting new products people actually want to eat.
• WDAY +5%; reported upside to consensus estimates on both revenue and operating Income, with sales better while the company left FY27 subscription guidance unchanged at 12-13% but tweaked operating margin higher by 50 bps to 30.5%; one negative was Q2 cRPO guide 13.5-14.5% vs 14.4% consensus.
• ZM +11%; delivered a Q1 beat and raise, with revenue, operating Income, PF EPS, and FCF all ahead of expectations and the company guided FY27 revenue and EPS higher; Q1 revs +5.5% y/y (4.6% in CC) above the +4.2% consensus and FY27 revenue guide was raised by $15M (~same as beat) to +4.4% growth.

• DNLI -3%; shares slide after the company and partner BIIB said they will discontinue development of their Parkinson's drug after it failed to meet the main goal in a mid-stage study; they said the drug, BIIB122, did not slow disease progression compared with placebo.
• FUTU -27%; along with TIGR after being penalized by Chinese securities regulators for operating on the mainland without a license. The China Securities Regulatory Commission said it intends to confiscate all “illegal gains” from both the domestic and overseas entities of the firms and will impose severe penalties.
• INSP -4%; downgraded from Neutral to Underperform at Bank America and cut tgt to $39 from $53 saying without a smooth and consistent coding pathway for Centers, sees higher risk to estimates and does not see the stock working until there's more clarity on coding as firm lowers estimates.
• SMMT -4%; on competition concerns as MRK and partner Sichuan Kelun-Biotech said their experimental cancer treatment combined with Merck's Keytruda met the main goal of a late-stage study, reducing the risk of lung cancer progression or death by about 65% (SMMT is developing a lung cancer treatment called ivonescimab)

Closing Recap

Friday, May 22, 2026

Another week, another rally on Wall Street closing at record highs into the Memorial Day 3-day holiday weekend! U.S. stocks remain on a winning streak as the S&P 500 hit an all-time high and made it an 8^th straight week of gains (longest since a nine-week streak ended in December 2023 and topping 7,500 for the first time) while Russell 2000 outperformed and the Dow Jones Industrial Average hit an all-time closing high in a week dominated by strength in Technology (XLK) and defensive sectors with more than 3% weekly gains for REITs, Utilities and Healthcare. Not much to say as the story remains the same, heavily weighed tech stocks continue to push broader averages higher as the FOMO for anything AI growth related keeps investors engaged with big moves in semis (SOX) hitting a new high today, along with gains in data center and AI infrastructure names, opticals, memory and so on. Power and Industrial names used to power the data centers and cooling companies also remain good movers. Today software names bounced and rallied on better WDAY and ZM earnings results, while PC Hardware names (DELL, HPQ) surged on better Lenovo results and PC sales. NVDA posted a beat and raise quarter midweek helping other semi names though shares of NVDA did little this week. A recent spike in Treasury yields and stubbornly high energy prices since the start of the U.S./Iran war about 2 months ago remain a concern as well as higher inflation economic data points and odds of a rate hike now growing vs expected cuts prior. Interesting times on Wall Street with many flashing warnings signs, but the AI growth expectations trumping all for now as FOMO on Wall Street remains real as sectors/stock markets around the world continue to surge. Japan’s Nikkei 225 rose 3.14% to end at a new record close of 63,339.07 (jumped 2.68% overnight), up 24.04% from its 2026 closing low of 51,063.72 hit March 31, 2026, Month-to-date it is up 6.84% while Year-to-date it is up 12,999.59 points or 25.82%. For the week, the S&P rose 0.88%, the Dow added 2.31%, the Nasdaq gained 0.45%.

Stats of the day: 1) @sentimentrader noted on X, “Nasdaq just triggered 8 Hindenburg Omen and Titanic Syndrome warnings in 3 weeks. When the 3-week warning count reached 8+, Nasdaq annualized returns averaged -24%. Price keeps pushing higher. So do the warnings.” 2) Also, Bank America noted “Mega-IPOs should push big AI stocks to almost 50% of US market cap, concentration not seen since railroads in 1880.” 3) @KobeissiLetter noted on X, “US ETF inflows are running at record levels: US ETFs have attracted +$852 billion in inflows year-to-date, the largest for any year in history. Inflows are now running +33% above the 2025 pace, on track for their 3rd consecutive annual increase. This means investors have poured a net +$8.5 billion on average per trading session into ETFs this year.”

• University of Michigan surveys of consumers 1-year inflation outlook final May 4.8% vs prelim 4.5% and final April 4.7%. University of Michigan surveys of consumers 5-year inflation outlook final May 3.9% vs prelim 3.4% and final April 3.5%.
• Japan April CPI rises 1.4% vs 1.6% consensus; Japan April CPI ex-fresh food up 1.4% vs 1.7% consensus and Japan April CPI ex-fresh food & energy rises1.9% vs 2.2% consensus.

• June gold settles -$19.30/oz, or -0.42%, at $4,523.20 an ounce and July Silver settles -$0.53/oz, or -0.69%, at $76.20 and for the week, both metals ended lower given a run by the US dollar to 6-week highs following conflicting signals over a U.S.-Iran peace deal. Kevin Warsh was sworn in today as the new FOMC President and is facing the highest yields on 10-year Treasuries of any Fed chair going back to Alan Greenspan in August 1987 since stepping into the role. Treasury yields end the day lower

• In Restaurants: SG was upgraded to Overweight from Neutral at JP Morgan and raise tgt to $13 from $8 following an encouraging meeting with management saying under new management, Sweetgreen has been aggressive at adopting new products people actually want to eat, like wraps. CAVA was upgraded to Buy at Argus after earnings noting restaurant traffic is improving and the stock trend has turned bullish, gaining 18% the last 3 months compared to a gain of 8% for the S&P 500.

• Broadline/Hardline Retail: warehouse operator BJ Q1 EPS ($1.10 vs. $1.03) and Ebitda ($298M vs. $270M) topped consensus  as revs rose nearly 10% y/y while only maintains its 2026 adjusted EPS guidance of $4.40-$4.60; Comparable club sales growth was largely driven by gasoline sales, with merchandise-only comps up 1.5% y/y.
• Off Price Retail: ROST shares rallied on results as reported an earnings beat, driven by comps of up 17% and raised its annual comparable sales and profit forecast; raises FY2026 EPS guidance to $7.50-$7.74 (up about 13%-17%) and sees FY2026 same‑store sales growth about 6%-7%.
• Footwear and Apparel Retail: DECK posted solid Q4 results, as sales rose 10% to $1.12B supported by FP selling in both UGG and HOKA; Sales at its Hoka brand rose 14.5% during the fourth quarter, while sales at the UGG brand increased 9.2%; the Company gave initial Insight in FY27 guidance as well as a long-term outlook

• In Cruise sector: VIK was upgraded from Hold to Buy at Truist and raised tgt to $102 from $75 saying the extremely strong industry-wide Luxury/River/Expedition bookings (and VIK is most of the industry for River), with River the strongest of the three, are just too difficult to ignore despite the strong performance of shares.

• Nuclear/Utilities: OKLO reinstated Buy and $80 tgt at Bank America saying its differentiated, vertically Integrated “build-own-operate” model positions it as a potential early leader in small Modular reactors, uniquely capturing full project economics by owning its reactors and pursuing long-term customer contracts mainly with a focus on energy intensive customers that require behind-the-meter power like datacenters, industrial users. For names like TLN, VST, US Secretary of Energy Chris Wright today issued an emergency order permitting PJM Interconnection, in coordination with the Talen Energy Corporation, to “run Unit 4 at the Wagner Generating Station in Anne Arundel County, Maryland to meet anticipated electricity demand,” according to a statement. Emergency order increases grid stability and minimizes the risk of energy shortfalls in 13 states and the District of Columbia.
• Baker Hughes reports that the U.S. rig count is up 7 from last week to 558 with oil rigs up 10 to 425, gas rigs down 3 to 125 and miscellaneous rigs unchanged at 8. The U.S. Rig Count is down 8 rigs from last year's count of 566 with oil rigs down 30, gas rigs up 17 and miscellaneous rigs up 5.

• Brokers: FUTU and TIGR shares tumbled after being penalized by Chinese securities regulators for operating on the mainland without a license. The China Securities Regulatory Commission said it intends to confiscate all “illegal gains” from both the domestic and overseas entities of the firms and will impose severe penalties.
• FinTech: BULL reported Q1 revenue that was 2% above the Street while Q2's options/equity volumes are trending ~9% above Consensus; Q1 equity/options revenue was flat QoQ compared to HOOD's 14% decline; total operating expenses increased 68% Y/y, primarily driven by higher marketing and branding expenses.

• AZN said a European Medicines Agency committee has adopted a positive opinion of their experimental breast cancer drug, Camizestrant just weeks after an FDA advisory panel voted against the treatment, raising concerns about the design of a key late-stage trial rather than the treatment's safety or effectiveness.
• DNLI shares slide after the company and partner BIIB said they will discontinue development of their Parkinson's drug after it failed to meet the main goal in a mid-stage study; they said the drug, BIIB122, did not slow disease progression compared with placebo.
• MRK said its antibody-drug conjugate developed by China’s Kelun-Biotech was dramatically more potent than Keytruda alone in a Phase 3 lung cancer study. Sacituzumab tirumotecan, licensed by Merck, cut the risk of tumor progression by 65% in patients with newly diagnosed non-small cell lung cancer with PD-L1 expression when it was combined with Keytruda, compared to Keytruda alone.
• SMMT shares fell on the MRK news: MRK and partner Sichuan Kelun-Biotech said their experimental cancer treatment combined with Merck's Keytruda met the main goal of a late-stage study, reducing the risk of lung cancer progression or death by about 65% (SMMT is developing a lung cancer treatment called ivonescimab)
• Medical Equipment: INSP downgraded from Neutral to Underperform at Bank America and cut tgt to $39 from $53 saying without a smooth and consistent coding pathway for Centers, sees higher risk to estimates and does not see the stock working until there's more clarity on coding as firm lowers estimates.

• In Aerospace: RKLB announced the successful deployment of the latest Satellite for Synspective, marking the ninth dedicated mission Rocket Lab has completed for the Japan-based Earth observation Constellation. This launch further strengthens one of the most consistent commercial launch partnerships in the small Satellite sector and highlights Electron's industry-leading dedicated launch service. Drone names RCAT, UMAC, AVAV shares bounced after the Nikkei reported Chinese drone shipments nose-dive on domestic restrictions, US ban; DJI and others look to new fields like action cameras as sales plummet.
• Gov’t Services/Defense: BAH better results as Q4 adj EPS of $1.78 tops consensus of $1.34 citing disciplined execution, strategic investments and accelerating demand across portfolios and raises its profit outlook for the year to $6.00-$6.35, above prior estimates of $5.95-$6.15.
• In Metals & Mining: AA was upgraded to Buy from Neutral at UBS and raise tgt to $80 from $75 saying they believe smelter outages due to a protracted conflict in the Middle East will more than offset Alcoa's near-term demand risks, resulting in "stronger for longer" aluminum prices and premiums. CRML announces secondary offering of 20,650,260 ordinary shares

• Communication Software: ZM delivered a Q1 beat and raise, with revenue, operating Income, PF EPS, and FCF all ahead of expectations and the company guided FY27 revenue and EPS higher; Q1 revs +5.5% y/y (4.6% in CC) above the +4.2% consensus and FY27 revenue guide was raised by $15M (~same as beat) to +4.4% growth.
• Application Software: WDAY reported upside to consensus estimates on both revenue and operating Income, with sales better while the company left FY27 subscription guidance unchanged at 12-13% but tweaked operating margin higher by 50 bps to 30.5%; one negative was Q2 cRPO guide 13.5-14.5% vs 14.4% consensus.
• PC related stocks DELL, HPQ surge after Lenovo (LNVGY) reported a better-than-expected 27% jump in quarterly revenue helped by strong consumer demand for PCs, the highest quarterly growth rate in five years. Lenovo said its Q4 revenue jumped 27% to $21.6B topping ests $18.7B and said it is also accelerating its push into the AI inference market, with its AI server order pipeline reaching $21 billion. Its infrastructure solutions group, which includes its AI server business, posted 37% revenue growth in Q4.
• Quantum stocks RGTI extend gains a day after media reports The Trump administration is awarding $2B in grants to nine Quantum-computing companies, including U.S. government equity stakes. IBM will receive $1B of the package, with GlobalFoundries (GFS) getting $375M. D-Wave Quantum (QBTS), Rigetti Computing (RGTI), and Infleqtion (INFQ) are also expected to be awarded funds. Under the terms of the deals, which still need to be finalized, the government will receive a minority equity stake in each Quantum company. Shares of other quantum names IONQ, QMCO, QUBT BTQ also seeing recent momentum.
• In Semiconductors: New all time highs for the Philly semi index (SOX) rising above 12,300 with big gains today in names like AMD, QCOM and INTC; MU has started manufacturing 1-alpha DRAM in Virginia, calling it the most advanced memory technology ever produced in the U.S.
• In AI: Anthropic released Claude Security in public Beta for Claude enterprise customers. Also begun our Cyber verification program, which allows Security professionals using our models for legitimate cybersecurity purposes. Anthropic said they will work with critical Partners, including US and Allied governments, to expand project Glasswing to additional Partners.
• Cable & Telecom: Keybanc said they recommend buying AT and TMUS and see a less compelling setup across CABO, CHTR, CMCSA and VZ noting valuations are depressed for T-Mobile and AT&T relative to the organic growth acceleration expected. Commentary suggests Starlink appears to be incrementally impacting the sector—though is relatively isolated to smaller providers and rural environments.

Street Recommendations

Friday, May 22, 2026

• RL Barclays raised the firm's price target on Ralph Lauren to $439 from $430 and keeps an Overweight rating on the shares. The company's fiscal Q4 constant currency revenue growth of 12% handily beat the consensus estimate of 5%, the analyst tells investors in a research note. The firm views Ralph's fiscal 2027 outlook as "prudently conservative and appears well-shaped."
• URBN Barclays analyst Adrienne Yih lowered the firm's price target on Urban Outfitters to $100 from $102 and keeps an Overweight rating on the shares following the Q1 report. Urban saw "broad-based strength," with positive comps across all banners and strong regular price selling, the analyst tells investors in a research note.
• CLF Barclays last night initiated coverage of Cleveland-Cliffs with an Underweight rating and $9 price target. The stock in premarket trading is down 7c to $10.63. The firm is "encouraged" by Cleveland-Cliffs' cost improvement initiatives and expected margin improvement from the roll off of the legacy slab contract. However, the shares warrant a lower multiple relative to peers given the company's higher leverage, the analyst tells investors in a research note.
• SCCO Barclays last night initiated coverage of Southern Copper with an Underweight rating and $148 price target. The stock in premarket trading is down 63c to $178.49. Southern Copper's valuation premium relative to its large- and small-cap copper peers "appears stretched beyond its typical and warranted level," the analyst tells investors in a research note. Barclays says Southern Copper is a "clear global leader" in copper production due to its low-cost operations, growth pipeline, "industry-leading reserve base, and high-yielding dividend."

• INSP BofA downgraded Inspire Medical to Underperform from Neutral with a price target of $39, down from $53. The firm sees higher risk to estimates without a smooth and consistent coding pathway for centers and does not see the stock working until there's more clarity on coding, the analyst tells investors. Inspire's guidance assumes things are improving now and 2027 revenues will grow, but "it is tough for us to call a sustainable improvement" until there's an official code for Inspire V, which is "at best Jan 1, 2028, but increasingly looks like it could take even longer," the analyst added.
• HAE BofA analyst Travis Steed upgraded Haemonetics to Buy from Neutral with a price target of $80, up from $72. The firm, which thinks that it seems more likely that Haemonetics has "turned the corner on vascular closure and plasma upside seems more durable," sees conservative guidance to start the year in all three segments and views upside as "likely as the year goes on."
• SMR BofA reinstated coverage of NuScale Power with a Neutral rating and $12 price target. NuScale's first-mover regulatory advantage as the only small modular reactor with U.S. Nuclear Regulatory Commission Standard Design Approval, alongside its use of conventional low enrich uranium fuel, provides "a clear credibility lead versus peers," the analyst tells investors. However, revenues remain tied to services, first reactor power is not expected until the early 2030s, and converting agreements to firm deals has been slower than anticipated, the analyst added.
• DE BofA analyst Michael Feniger lowered the firm's price target on Deere to $607.50 from $672 and keeps a Neutral rating on the shares after the company reported what the firm calls "a mixed set of results." While stating that the momentum in small ag and particularly Construction and Forestry is "noteworthy," the firm contends that "Large Ag is still the core driver" of Deere and senses "investors may be frustrated" over the Large Ag pricing trend.
• ROST BofA raised the firm's price target on Ross Stores to $255 from $240 and keeps a Buy rating on the shares. The firm is increasing its FY26 and FY27 EPS estimates by 6% and 7%, respectively, to reflect the Q1 beat and raised fiscal year outlook, the analyst tells investors.
• WMT BofA lowered the firm's price target on Walmart to $144 from $150 and keeps a Buy rating on the shares. The firm lowered its multiple after earnings due to the more challenged consumer backdrop, but thinks share gains will accelerate with a price-conscious consumer, which "should drive a return to a beat/raise cycle assuming the freight environment doesn't worsen."

• OFIX Canaccord lowered the firm's price target on Orthofix to $18 from $20 and keeps a Buy rating on the shares. The firm updated its model following the announcement that recent CMS reimbursement updates related to non-invasive bone growth stimulators are expected to negatively impact reimbursement beginning May 18, 2026. The update follows the FDA's April 2026 reclassification of non-invasive bone growth stimulators (BGS) from Class III devices to Class II, after which CMS revised certain billing requirements and Medicare fee schedule treatments for products billed under HSPCS codes E0747 (Fracture), E0748 (Spine), and E0760 (Ultrasound), impacting OFIX's entire bone growth stimulation portfolio.
• TENB Canaccord raised the firm's price target on Tenable to $30 from $28 and keeps a Buy rating on the shares. The firm updated its model following its investor day and came away with higher conviction that Tenable becomes more valuable in an agentic security world, not less. Management's core point was that AI is increasing exposure volume, accelerating vulnerability discovery, and compressing the time defenders have to act.

• SNSE Citi initiated coverage of Sensei Biotherapeutics with a Buy rating and $55 price target. The company is advancing piktor in endometrial cancer, with second-line adjusted peak sales potential of $700M, the analyst tells investors in a research note. Citi says Sensei is progressing towards a larger opportunity in breast cancer. It views piktor's early data as "encouraging."
• EL Citi raised the firm's price target on Estee Lauder to $110 from $92 and keeps a Buy rating on the shares. The firm believes the ending of the Puig merger talks will be positive for the shares. Estee's "Beauty Reimagined" strategy is delivering positive results, the analyst tells investors in a research note.
• LZ Citi analyst Ronald Josey lowered the firm's price target on LegalZoom to $7.50 from $8.50 and keeps a Neutral rating on the shares post the Q1 report. While the company's Q1 revenue and EBITDA beat estimates, its Q2 revenue and EBITDA guidance came in below consensus, the analyst tells investors in a research note.
• ROST Citi raised the firm's price target on Ross Stores to $270 from $261 and keeps a Buy rating on the shares. The company reported an earnings beat, driven by comps of up 17%, the analyst tells investors in a research note. Citi sees Ross as well positioned as consumers seek out value.

• ROST Goldman Sachs raised the firm's price target on Ross Stores to $270 from $244 and keeps a Buy rating on the shares. Ross Stores reported a very strong Q1 beat led by another significant acceleration in comp trends as momentum continues to strengthen, the analyst tells investors in a research note. This quarter is another strong proofpoint of the building tailwinds emerging from the execution of Ross Stores' multi-pillar strategic playbook, the firm says.

• SHLS Guggenheim raised the firm's price target on Shoals Technologies to $12 from $11 and keeps a Buy rating on the shares. The firm updated its model to reflect Shoals' Q1 earnings.

• ZM Jefferies raised the firm's price target on Zoom Communications to $118 from $105 and keeps a Buy rating on the shares. The firm views the company's fiscal Q1 results as strong. Zoom's AI story is resonating, and its improving growth and growing buybacks should support the shares, the analyst tells investors in a research note.
• GNRC Jefferies upgraded Generac to Buy from Hold with a price target of $302, up from $239. The stock in premarket trading is up 1% to $249.93. The company has "multiple shots on goal" for data center contract conversion, the analyst tells investors in a research note. The firm sees a positive risk/reward for Generac shares with two potential data center announcements this year. Baudouin engines are finding their way into hyperscaler configurations, pointing to market acceptance for a product only Generac "can ably scale," contends Jefferies. It upped Generac's estimates and notes companies with data center updates have positive share reactions.

• DKS JPMorgan raised the firm's price target on Dick's Sporting to $240 from $228 and keeps a Neutral rating on the shares. JPMorgan also placed the shares on "Positive Catalyst Watch" ahead of the earnings report on May 27. Based on its data and channel work, the firm increased Dick's Sporting's Q1 core comp estimate to up 4.8% from 3.4%. The company's footwear momentum is continuing in addition to ongoing sports and healthy living engagement, the analyst tells investors in a research note.
• SPOT JPMorgan analyst Doug Anmuth raised the firm's price target on Spotify to $650 from $600 and keeps an Overweight rating on the shares. The company's investor day was "strong" and included a "landmark" AI licensing agreement with Universal Music Group as well as path to introducing multiple add-on tiers across verticals, the analyst tells investors in a research note. In addition, the firm says Spotify's 2030 financial targets came in above expectations. JPMorgan upped estimates post the investor day.
• WMT JPMorgan added Walmart to the firm's Analyst Focus List as a growth idea while keeping an Overweight rating on the shares with a $137 price target. The post-earnings share selloff provides a buying opportunity, the analyst tells investors in a research note. JPMorgan believes Walmart's share gains and alternate profit pool "flywheel" has accelerated. The firm expects the shares to "recover and get back to its grind higher" as the market prices in Walmart's future earnings power over time.

• FROG KeyBanc analyst Jason Celino raised the firm's price target on JFrog to $86 from $83 and keeps an Overweight rating on the shares. The firm hosted investor meetings with JFrog's CFO Ed Grabscheid and Head of IR Jeff Schreiner, which largely focused on the company's Cloud growth sustainability, AI-native customers, and opportunity with security. KeyBanc came away with incremental confidence in management's consistent execution and ability to upside on guidance throughout the year, further confirming its view that JFrog remains a high-conviction story in developer software.
• WDAY KeyBanc raised the firm's price target on Workday to $158 from $155 and keeps an Overweight rating on the shares. The firm notes Workday reported slightly better current remaining performance obligations growth of 15.4%, highlighting strong new annual contract value growth driven by its core biz and AI traction. While Q2 cRPO growth outlook is slightly lower, KeyBanc is encouraged by Workday's modest raise to full year operating margin outlook to 30.5%, demonstrating its ability to accelerate pace of product innovation, while expanding margins. The firm acknowledges the heightened AI skepticism and execution challenges amid management changes, though with shares currently trading at nine times FY28 free cash flow, KeyBanc sees compelling risk/reward.
• WMS KeyBanc analyst Jeffrey Hammond lowered the firm's price target on Advanced Drainage to $185 from $198 on lower estimates and keeps an Overweight rating on the shares following quarterly results. While acknowledging the price/cost headwinds, the firm feels the company is "controlling the controllables" well on margins and believes the initial FY27 outlook embeds conservatism, leaving room for upside with no end market improvement. Looking out, KeyBanc continues to see shares re-rating higher long-term as investors better appreciate Advanced Drainage's sustainable long-term outgrowth levers and continued margin opportunities, which the firm expects to be highlighted at the upcoming investor day.

• BFH Loop Capital analyst Dominick Gabriele last night initiated coverage of Bread Financial with a Buy rating and $104 price target. The firm sees a "stable to improving" trajectory for the financials space and names American Express its top pick. The stocks should grind higher in a perceived uncertain macro environment, the analyst tells investors in a research note. Bread's fundamentals are still improving and the company is likely to achieve mid-single-digit loan growth with operating leverage, contends Loop.
• SYF Loop Capital last night initiated coverage of Synchrony with a Hold rating and $81 price target. The firm sees a "stable to improving" trajectory for the financials space and names American Express its top pick. The stocks should grind higher in a perceived uncertain macro environment, the analyst tells investors in a research note. Loop says Synchrony's loan growth hasn't materialized to the degree it expected. Walmart is likely driving the company's loan growth in 2026 that will create "suboptimal comparisons" for loan growth in 2027, the firm adds.

• ZM Mizuho raised the firm's price target on Zoom Communications to $120 from $100 and keeps an Outperform rating on the shares. The firm views the company's fiscal Q1 report as solid. Zoom is executing well and has shown its growth can "continue to step higher," the analyst tells investors in a research note.

• SPOT Morgan Stanley analyst Sean Diffley raised the firm's price target on Spotify to $610 from $590 and keeps an Overweight rating on the shares. Spotify "should move back to the AI winner bucket" following an investor day that exceeded expectations on both the financial and product fronts, the analyst tells investors.

• ZM Needham analyst Joshua Reilly raised the firm's price target on Zoom Communications to $130 from $100 and keeps a Buy rating on the shares. The company reported a solid Q1 with revenue 140 bps above the firm's estimates, the analyst tells investors in a research note. Very strong trends for non-current RPO implying that customers are buying more products with longer contract durations are indicating that mid-single digit revenue growth is likely sustainable for the next several years, the firm added.
• WDAY Needham lowered the firm's price target on Workday to $180 from $300 and keeps a Buy rating on the shares. The company reported decent upside to consensus estimates on both revenue and operating income, with sales better than our cautious preview, but the post-earnings gain in shares feels more like a relief rally against a low bar, the analyst tells investors in a research note. Workday also only reiterated its full year revenue guide, resulting in a 40bp decline to the firm's second half revenue forecast, Needham added.
• RIOT Needham raised the firm's price target on Riot Platforms to $28.50 from $24 and keeps a Buy rating on the shares. The firm notes its Corsicana Site tour with the company management was impressive, adding however that investors should have patience on a lease timeline, the analyst tells investors in a research note.
• TENB Needham raised the firm's price target on Tenable to $30 from $26 and keeps a Buy rating on the shares after attending the company's Investor Day presentation. The management's 2029 target model assumes high single-digit to low double-digit y/y revenue growth alongside free cash flow margin expansion, the analyst tells investors in a research note. Needham adds that Tenable has made strides in expanding the portfolio and selling the vision of Exposure Management to customers.

• LULU Piper Sandler lowered the firm's price target on Lululemon to $130 from $190 and keeps a Neutral rating on the shares. This week, the firm hosted an expert call with investors on expectations as Heidi O'Neill takes reins as CEO in September. Piper notes shares are down 27% since the April 22 announcement as market is taking a negative view. Per the firm's expert, O'Neill is a decisive leader who executes swiftly once problems are identified -- albeit Lululemon is still in search of the right solution to fix the U.S.
• JAZZ Piper Sandler raised the firm's price target on Jazz Pharmaceuticals to $301 from $232 and keeps an Overweight rating on the shares. Jazz shares, in the firm's view, have not re-rated as much as they should have in light of the broader zanidatamab opportunity, both in terms of near-term dynamics and longer-term dynamics. In that vein, Piper continues to believe that further multiple expansion from a current EV/2027 EBITDA of about eight times is warranted, even amid likely pressure on Xywav.
• WDAY Piper Sandler analyst Billy Fitzsimmons raised the firm's price target on Workday to $145 from $135 and keeps a Neutral rating on the shares. The firm notes the company delivered a Q1 revenue beat of 0.8%, partially benefiting from linearity around deals that slipped from Q4 into the start of Q1. Given certain on-cycle software prints cited elevated deal scrutiny, AI-driven disruption, etc., Workday's ability to deliver a Q1 beat and disclose ramping AI monetization metrics is a notable positive, Piper argues.

• NMIH RBC Capital initiated coverage of NMI Holdings with an Outperform rating and $46 price target. The company's expense ratio has substantially improved in recent years, the analyst tells investors in a research note. RBC also believes NMI has continued room for insurance in-force share gains. These should drive above-peer earnings growth in a slower origination market for NMI and support continued relative share outperformance, contends the firm.
• ESNT RBC Capital analyst Rowland Mayor initiated coverage of Essent Group with a Sector Perform rating and $68 price target. The firm expects the company's earnings growth to be limited through 2028 and return on equity to come in below 12%. Essent faces limited earnings and premium growth from its core private mortgage insurance business, the analyst tells investors in a research note.
• RDN RBC Capital initiated coverage of Radian Group with an Outperform rating and $47 price target. The firm is positive on the company's "transformative" acquisition of Inigo. The diversification of Radian's business away from private mortgage insurance should support above-peer earnings growth and a stock re-rating towards property and casualty multiples, the analyst tells investors in a research note. RBC believes Radian's investor day on June 4 could serve as a near-term catalyst for the shares.

• TENB Stifel analyst Adam Borg raised the firm's price target on Tenable to $26 from $22 and keeps a Hold rating on the shares after having attended Tenable's analyst day in Boston. The firm thought the extended leadership team did "a nice job" articulating why AI is a tailwind to its business, the analyst tells investors.

• UNH UBS analyst AJ Rice raised the firm's price target on UnitedHealth to $460 from $410 and keeps a Buy rating on the shares. Managed care organizations broadly raised guidance after stronger-than-expected Q1 results benefited from favorable respiratory trends and seasonal cost patterns, while improved Medicare Advantage rates, steadier ACA exchange enrollment, and modest Medicaid outperformance have boosted confidence in margin recovery despite ongoing cost pressures from specialty drugs, GLP-1s, and behavioral health, the analyst tells investors in a research note.
• CI UBS raised the firm's price target on Cigna to $400 from $375 and keeps a Buy rating on the shares. Managed care organizations broadly raised guidance after stronger-than-expected Q1 results benefited from favorable respiratory trends and seasonal cost patterns, while improved Medicare Advantage rates, steadier ACA exchange enrollment, and modest Medicaid outperformance have boosted confidence in margin recovery despite ongoing cost pressures from specialty drugs, GLP-1s, and behavioral health, the analyst tells investors in a research note.
• ELV UBS raised the firm's price target on Elevance Health to $460 from $400 and keeps a Buy rating on the shares. Managed care organizations broadly raised guidance after stronger-than-expected Q1 results benefited from favorable respiratory trends and seasonal cost patterns, while improved Medicare Advantage rates, steadier ACA exchange enrollment, and modest Medicaid outperformance have boosted confidence in margin recovery despite ongoing cost pressures from specialty drugs, GLP-1s, and behavioral health, the analyst tells investors in a research note.
• CNC UBS analyst AJ Rice raised the firm's price target on Centene to $61 from $55 and keeps a Neutral rating on the shares. Managed care organizations broadly raised guidance after stronger-than-expected Q1 results benefited from favorable respiratory trends and seasonal cost patterns, while improved Medicare Advantage rates, steadier ACA exchange enrollment, and modest Medicaid outperformance have boosted confidence in margin recovery despite ongoing cost pressures from specialty drugs, GLP-1s, and behavioral health, the analyst tells investors in a research note.
• HUM UBS raised the firm's price target on Humana to $320 from $262 and keeps a Neutral rating on the shares. Managed care organizations broadly raised guidance after stronger-than-expected Q1 results benefited from favorable respiratory trends and seasonal cost patterns, while improved Medicare Advantage rates, steadier ACA exchange enrollment, and modest Medicaid outperformance have boosted confidence in margin recovery despite ongoing cost pressures from specialty drugs, GLP-1s, and behavioral health, the analyst tells investors in a research note.
• MOH UBS raised the firm's price target on Molina Healthcare to $202 from $180 and keeps a Neutral rating on the shares. Managed care organizations broadly raised guidance after stronger-than-expected Q1 results benefited from favorable respiratory trends and seasonal cost patterns, while improved Medicare Advantage rates, steadier ACA exchange enrollment, and modest Medicaid outperformance have boosted confidence in margin recovery despite ongoing cost pressures from specialty drugs, GLP-1s, and behavioral health, the analyst tells investors in a research note.

• AAP Wells Fargo analyst Zachary Fadem raised the firm's price target on Advance Auto Parts (AAP) to $60 from $50 and keeps an Equal Weight rating on the shares. The firm says the stock deserves to trade up after the company posted its strongest comparable-store sales in five years with notable gross margin and EBIT percentage progress. But the bears still have ammo via slightly wider underperformance vs. O'Reilly Automotive (ORLY), softening quarter-to-date and still negative free cash flow.
• WSM Wells Fargo raised the firm's price target on Williams-Sonoma to $190 from $185 and keeps an Equal Weight rating on the shares. The firm notes shares deservedly traded up via 4.8% comparable-store sales, widening share gain and yet another gross margin beat. While high price to earnings and well-documented consumer/macro issues keep Wells sidelined, the firm sees this as another impressive print.
• DELL Wells Fargo analyst Aaron Rakers raised the firm's price target on Dell Technologies to $270 from $180 and keeps an Overweight rating on the shares. The firm sees a pull-forward of Dell's implied $17-$18/share EPS into 2028 as key driver following 101% year-to-date move. The firm now estimates 2028 at $17.67/ share.
• SPOT Wells Fargo raised the firm's price target on Spotify to $600 from $580 and keeps an Overweight rating on the shares. The firm notes Spotify regained the bullish narrative by tying its large user base -- and the insights derived from it -- to new future monetization opportunities. This supports a long-term outlook that's about low double-digit percentage vs. Street.
• RL Wells Fargo raised the firm's price target on Ralph Lauren to $415 from $400 and keeps an Overweight rating on the shares. With sentiment having shifted downward over the past three months, Q4 showed that U.S. is healthy, APAC is accelerating and ideo concerns over the EU were overblown, the firm says. Wells remains a buyer as visibility now improves.
• ROST Wells Fargo raised the firm's price target on Ross Stores to $245 from $235 and keeps an Overweight rating on the shares. The firm notes the company continues to thrive, showing that new strategic initiatives and industry tailwinds are driving record comparable sales growth. The acceleration that began nine months ago has only accelerated and momentum at Ross has never been this robust, Wells adds.
• WDAY Wells Fargo analyst Michael Turrin raised the firm's price target on Workday to $185 from $180 and keeps an Overweight rating on the shares. The firm says management threaded the needle on Q1 results after last quarter's reset, delivering solid upside while holding the full year guide. The run-rate operating yield setup now looks increasingly achievable while shares still 10 times EV/free cash flow.

Rating abbreviations…

***OP = Outperform

***SP = Sector Perform

***UP = Underperform

***OW = Overweight

***EW = Equal-weight

***UW = Underweight

***Report powered by thefly.com***

What’s on Tap Weekly Calendar

Monday May 25^th

• U.S. stock markets are closed for Memorial Day

• 9:00 AM ET                   Monthly Home Price index M/M for March
• 9:00 AM ET                   CaseShiller 20 City Index for March
• 10:00 AM ET                 Consumer Confidence for May
• 10:30 AM ET                 Dallas Fed Manufacturing for May
• 1:00 PM ET US Treasury to sell $69B in 2-year notes

• Earnings After the Close: API APPS BBAR BOX MOD OOMA QFIN SMTC SQM TRNS ZS

• 8:55 AM ET                   Johnson/Redbook Weekly Sales
• 10:00 AM ET                 Richmond Fed Index for May
• 1:00 PM ET US Treasury to sell $70B in 5-year notes
• 4:30 PM ET API Weekly Inventory Data

• Earnings After the Close: A ARXS BRZE CRM HEI HPQ MRVL NCNO NOAH NTNX P PHR SNOW SNPS

• Deutsche Bank 16th Annual Global Financial Services Conference, 5/27-5/28, in New York
• Keybanc Industrial & Basic Materials Conference, 5/26-5/28, in Boston
• TD Cowen 54th Annual Technology, Media & Telecom Conference, 5/27-5/28, in New York

• 8:30 AM ET                   Continuing Claims
• 8:30 AM ET                   Personal Income M/M for April
• 8:30 AM ET                   Personal Spending M/M for April
• 8:30 AM ET PCE Price index M/M for April
• 8:30 AM ET PCE Price index Y/Y for April
• 8:30 AM ET                   Core PCE Price index M/M for April
• 8:30 AM ET                   Core PCE Price index Y/Y for April
• 8:30 AM ET                   Q1 GDP second estimate
• 8:30 AM ET                   Q1 GDP Consumer Spending
• 8:30 AM ET                   Q1 GDP Price Deflator
• 8:30 AM ET PCE Price index M/M for Q1
• 8:30 AM ET                   Core PCE Price index M/M for Q1
• 10:00 AM ET                 New Home Sales M/M for April
• 10:30 AM ET                 Weekly EIA Natural Gas Inventory Data
• 12:00 PM ET                 Weekly EIA Inventory Data
• 1:00 PM ET US Treasury to sell $44B in 7-year notes

• Earnings After the Close: ADSK AEO AMBA ASAN COST DELL ESTC GAP HQY MDB NGL NTAP OKTA PD PKE S

• Benchmark Healthcare Conference, 5/28 (virtual)
• Deutsche Bank 16th Annual Global Financial Services Conference, 5/27-5/28, in New York
• Keybanc Industrial & Basic Materials Conference, 5/26-5/28, in Boston
• Stifel Jaws & Paws Conference, 5/28-5/29 in New York
• TD Cowen 54th Annual Technology, Media & Telecom Conference, 5/27-5/28, in New York

• 9:45 AM ET                   Chicago PMI for May
• 1:00 PM ET                    Baker Hughes Weekly rig count data

• Stifel Jaws & Paws Conference, 5/28-5/29 in New York