Early Look

Tuesday, May 26, 2026

After ending last week higher, US futures are looking at another strong stock market open as investors return from the three day Memorial Day holiday weekend. Futures got a boost this weekend on reports the United States and Iran have agreed to a deal in principle to wind down the war in the Middle East and end the Iranian blockade of the Strait of Hormuz, a Senior U.S. official said Sunday, although some of the most sensitive issues have yet to be resolved. There were no immediate public statements from Iran about a deal being reached, and Iranian officials over the last 24 hours offered some conflicting depictions of what a potential agreement might contain. The U.S. official said Sunday that a deal had not yet been signed and was still subject to final approval from President Trump and Iran’s supreme leader, which could take days. Meanwhile, US and Israeli jets struck Iranian vessels in the Strait of Hormuz and other targets, hours after President Donald Trump had suggested negotiations with Tehran over an interim deal were progressing.

For last week, the S&P rose 0.88%, the Dow added 2.31%, the Nasdaq gained 0.45%. The S&P 500 hit an all-time high and made it an 8th 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. Earnigns season is mostly behind us, but there are still several notable companies reporting this week in the retail and technology sectors. In Asian markets, The Nikkei Index declined -162 points to 64,996, the Shanghai Index dipped -7 points to 4,145, and the Hang Seng Index slipped -6 points to 25,599. In Europe, the German DAX is down -142 points to 25,246, while the FTSE 100 is up 65 points to 10,532. The economic calendar will be back end heavy in the holiday shortened week with the Conference Board's consumer confidence reading today, following the University of Michigan's sentiment release Friday. The Fed's preferred inflation gauge, the Personal Consumption Expenditures index, will come out on Thursday, along with GDP data.

• The Dow Jones Industrial Average rose 294.29 points, or 0.59%, to 50,579.95
• The Nasdaq Composite gained 50.87 points, or 0.19%, to 26,343.97
• The Russell 2000 Index advanced 25.76 points, or 0.91% to 2,869.21

• 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

• The ECB should raise interest rates in June, even if ongoing peace talks with Iran yield a deal, as the conflict has been far longer than projected and high energy prices are spilling into the broader economy, board member Isabel Schnabel said.

• The U.S. FDA's new, looser regulation of new vapes and nicotine pouches will potentially unleash hundreds more such products on the market in the coming weeks and months, according to three current and former Trump administration officials - Reuters reports.

• BlackSky technology Inc (BKSY) said may offer up to $250M of common stock through sales agents.
• Navios Maritime Partners LP (NMM) said may offer up to $500M of securities.
• Northern Oil & Gas (NOG) announced that it has agreed to purchase an undivided 25% interest in the Light-Oil Duvernay Assets owned and operated by Parallax Energy Operating Inc. The Assets are comprised of an undivided non-operated interest which includes, net to NOG, 4,000 Boe per day of production and 75,000 acres in the Light-Oil Duvernay Shale at an initial unadjusted purchase price of CA$350 million.
• Pentagon spars with SpaceX over Starlink price hike during Iran war: Reuters reports. The disagreement over Starlink’s use on LUCAS suicide drones, a cheap U.S. model comparable to Iran’s Shahed that can circle over a target area before diving to detonate on impact, is part of increasing tensions between SpaceX and the Pentagon over Starlink pricing in recent months, according to interviews with five people familiar with the matter.

• China's Xiaomi Corp posted a 43% slump in Q1 net profit, as its smartphone business was pressured by high memory chip costs; reported 6.1 billion yuan ($899 million) adjusted net profit for the January-March period, which compared with the average analyst estimate of 6.4 billion yuan.

Mid-Morning Look

Tuesday, May 26, 2026

New record highs to kick off the week on Wall Street as U.S. stocks surge, with investors returning from the three day holiday weekend in a buying mood with big gains again in technology stocks/sectors as the Philly semi index (SOX) hits another record high (up 20% MTD and 78% YTD after +40% returns last year) alongside a big jump in power stocks, data center plays on several headlines this morning (MOD, NNE, OKLO, WULF – see below). The chase continues as FOMO alive and well on Wall Street since the end of March. Even though peak Q1 earnings is over, still a busy week ahead with many large retailers, Canadian banks, and software/tech set to report (SNPS, DELL, MRVL, CRM, SNOW, CRDO). Momentum just incredible the last 2 months, with the SPY up 9 straight weeks, IWM up 9 of last 10 weeks, the QQQ up 8 of last 9 weeks and the Dow up 7 of last 9 weeks all hitting new highs along the way in an astound bull market run on Ai demand optimism. Today no different as Technology (XLK) up another 2% (+28% YTD) and Industrials (XLI) +12% YTD big winners on AI/power plays. Defensive Energy, Healthcare, Staples down to start

Optimism on Wall Street as oil prices fell on reports the United States and Iran were moving closer to a peace deal that would reopen the Strait of Hormuz, even though Washington and Tehran played down hopes for an imminent breakthrough. Brent crude settled down close to 6% on Monday's holiday-thinned session yesterday (US Memorial Day) as a US-Iran draft memorandum of understanding firmed up around a 60-day ceasefire extension, the demining and reopening of the Strait of Hormuz, removal of the US naval blockade and a sanctions waiver framework permitting Iranian crude sales. Despite renewed US military action against Iranian forces in the south of the country, markets remain optimistic of an imminent deal to end the Middle East conflict.  US forces targeted Iranian mine-laying boats and missile launchers, but the market reaction is not so dramatic.

Busy week of economic data with GDP and PCE inflation data on Thursday, but higher inflation, rising Treasury yields, and no official accord reached in the Middle East has not weighed on investor minds with Wall Street hedge fund managers trying to still play catch up with stock market returns in what has been one massive stock market chase for nine weeks now.

• In Automation: JP Morgan upgraded shares of ALNT, CGNX, and TKR to Overweight, and reiterating Overweight on RRX, HLIO, and GTES, reflecting its conviction in both robust short-cycle recovery and structural tailwinds from data Centers, Robotics, and humanoids. JPM continues to see its Automation sub-sector outperform the broader market, as “mother machines” signal a clear cyclical inflection and accelerating structural growth. Industry data show a durable rebound in industrial activity, with broad based order strength.
• In Airlines: UBS said they believe any potential conflict resolution in the Middle East can act as a meaningful catalyst for airline stocks. UAL is UBS's top pick in the space followed by DAL, ALK, AAL and LUV noting JETS has declined -3.5% YTD vs S&P 500 at around +10% and has created a solid opportunity, as the firm updated estimates imply around 50% EPS growth for 2027 for several airlines.
• Semiconductors: Record highs continue daily for the SOX index, up another 4.5% today topping 12,775 with gains in power names, analog, memory, GPU names, CPU names – it hasn’t mattered as the group up 8-% this year already alone (5 months). Huge moves MU, SNDK, WDC, STX yet again.
• In Oil majors: BP shares fall as removes Chairman Albert Manifold with immediate effect; says removal follows serious concerns raised to board related to important governance standards, oversight and conduct. In research, OXY was upgraded to Overweight at Barclays with higher tgt of $72 saying at higher oil prices, the company should reach its debt target and prefunding of the Berkshire preferred stake by the second half of 2027. EXE was downgrade to Equal Weight, at Barclays and lowered PT to $110 (from $127) which reflects the tempered gas outlook and less visible near-term catalyst path despite the discounted valuation.

• MOD +22%; as entered a long-term capacity agreement with one of its data-center customers to supply it with more than $4 billion worth of its cooling products between 2027 and 2029; noted it received a $165 million upfront cash payment from the undisclosed customer.
• MU +14%; lifting memory stocks again after UBS raised its price tgt to $1,625 from $535 saying with LTAs now firmly in place across most of the industry, UBS is again raising C2027 2029 estimates and expect EPS to remain comfortably >$100 throughout the period, with MU generating over $400B in FCF across the same timeframe.
• OKLO +6%; after saying it has been selected by US energy department for advanced talks on using cold war-era plutonium for Nuclear reactor fuel.
• VICR +10%; after raised its Q2 revenue view to $142M from $126M prior and above consensus $125.47M in view of rising product rev and royalties from additional licensee to its power system tech.
• WULF +10%; acquired the “Muskie Data Campus” in Eastern Kentucky, targeting more than 1 GW of AI and HPC data center capacity. The initial 500 MW phase is expected to begin ramping in 2H 2028, with another 500 MW targeted for 2H 2030

• BP -4%; as removes Chairman Albert Manifold with immediate effect; says removal follows serious concerns raised to board related to important governance standards, oversight and conduct.
• EDIT -17%; shares tumbled after 55.6M share Secondary priced at $2.25.
• RACE -4%; revealed its first electric vehicle, the Luce, a $640,000 four-door EV designed with input from former Apple design chief Jony Ive; produces over 1,000 horsepower with a 122 kWh battery and more than 330 miles of range; features a large iPad-style touchscreen while keeping some physical controls.

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

Tuesday, May 26, 2026

• ROST Barclays raised the firm's price target on Ross Stores to $260 from $242 and keeps an Overweight rating on the shares. The firm says the company's Q1 comp sales growth of 17% handily beat the consensus estimate of 8.6%. Ross' "compelling" assortments and marketing drove customer acquisition and its increased fiscal 2026 outlook remains conservative, the analyst tells investors in a research note.
• OXY Barclays upgraded Occidental to Overweight from Equal Weight with a price target of $72, up from $59. At higher oil prices, the company should reach its debt target and prefunding of the Berkshire preferred stake by the second half of 2027, the analyst tells investors in a research note. The firm believes that as leverage concerns fade, investor focus should shift to Occidental's "top-tier" resource base and improved capital efficiency.
• FFIV Barclays raised the firm's price target on F5 to $435 from $365 and keeps an Overweight rating on the shares ahead of the investor day on May 28. The firm says the "underlying drivers for the company are accelerating in relation to the criticality of F5's portfolio for enterprise customers adopting hybrid-cloud environments."
• CI Barclays downgraded Cigna to Equal Weight from Overweight with a price target of $304, down from $310. The company has limited potential upside to earnings estimates given its low exposure to government insurance, the analyst tells investors in a research note. The firm says Cigna also faces uncertainty from its pharmacy benefit manager transition and the pace of moderating investment spend. Barclays sees more risk than reward into the company's September investor day due to commercial attrition and AI-driven job cut risk.

• STX BofA raised the firm's price target on Seagate to $900 from $840 and keeps a Buy rating on the shares. After having hosted a call for clients with CEO Dave Mosley, the analyst uses a higher multiple, citing more confidence in the sustainability of demand and pricing.
• HIMS BofA analyst Allen Lutz lowered the firm's price target on Hims & Hers to $25 from $28 and keeps a Neutral rating on the shares. 2026 revenue guidance requires a significant GLP-1 ramp in the second half of the year and does not contemplate potential pricing pressure around the subscription fee, says the analyst, who lowered the firm's target multiple based on risks to the full year guide.
• AAPL BofA raised the firm's price target on Apple to $380 from $330 and keeps a Buy rating on the shares. In an agentic world, value accrues to the platform that controls user intent, personal context, app access, permissions, identity, authentication, payments, and trust, argues the analyst, who thinks Apple should have "meaningful leverage" over model providers, app developers, merchants, advertisers, and payment networks if AI assistants become the new front door to search, apps, commerce, scheduling, payments, and workflow completion.
• CSCO BofA raised the firm's price target on Cisco to $135 from $114 and keeps a Buy rating on the shares. Cisco's recent fiscal Q3 results and commentary around continued strong demand for Acacia keep the firm positive on the underlying demand environment for Optical Networking, the analyst tells investors.

• MDB Cantor Fitzgerald analyst Thomas Blakey raised the firm's price target on MongoDB to $416 from $378 and keeps an Overweight rating on the shares. Channel checks suggest results were broadly in line last quarter, with stable forward outlooks and continued growth driven primarily by AI-related demand, the analyst tells investors in a research note.
• SNOW Cantor Fitzgerald analyst Thomas Blakey lowered the firm's price target on Snowflake to $225 from $250 and keeps an Overweight rating on the shares. Channel checks suggest results were broadly in line last quarter, with stable forward outlooks and continued growth driven primarily by AI-related demand, the analyst tells investors in a research note.
• CTOS Cantor Fitzgerald raised the firm's price target on Custom Truck One Source to $13 from $11 and keeps an Overweight rating on the shares. Investor meetings with Custom Truck One Source management reinforced a constructive view that the company is entering an execution phase, with improving rental fundamentals, strong utility transmission demand, clearer segment reporting, and normalizing capex expected to support more durable free cash flow generation and ongoing deleveraging, the analyst says in a research note.
• SPOT Cantor Fitzgerald raised the firm's price target on Spotify to $520 from $430 and keeps a Neutral rating on the shares.

• ZM Citi analyst Tyler Radke raised the firm's price target on Zoom Communications to $126 from $122 and keeps a Buy rating on the shares. The firm views the company's Q1 report as strong.

• SYM Goldman Sachs analyst Mark Delaney lowered the firm's price target on Symbotic to $45 from $54 and keeps a Sell rating on the shares.
• WDAY Goldman Sachs lowered the firm's price target on Workday to $151 from $206 and keeps a Neutral rating on the shares. Although Q1 results came in above muted buyside expectations, a more durable re-rating of the stock will likely require successful execution and adoption of internally developed AI agents alongside stronger product-market fit for the company's headless and ITSM offerings, the analyst tells investors in a research note.

• RLAY Guggenheim raised the firm's price target on Relay Therapeutics to $26 from $22 and keeps a Buy rating on the shares. The firm updated its model for recent financing and has increased its view of the odds of success for zovegalisib in several indications.
• ROIV Guggenheim analyst Yastin Suneja raised the firm's price target on Roivant Sciences to $36 from $30 and keeps a Buy rating on the shares. The firm updated its model after recent fiscal Q4 earnings and pipeline updates.
• IMVT Guggenheim raised the firm's price target on Immunovant to $62 from $44 and keeps a Buy rating on the shares. The firm updated its model after recent fiscal Q4 earnings and pipeline updates.

• NOC Jefferies lowered the firm's price target on Northrop Grumman to $620 from $660 and keeps a Hold rating on the shares after having met with CEO Kathy Warden and CFO John Greene. The firm applies a discount given Northrop's below average organic growth, B-21 diluting margins, and capex increasing at a 14% compound annual growth rate to about 4.5% of sales, the analyst tells investors.

• TRV JPMorgan upgraded Travelers to Neutral from Underweight with a price target of $322, up from $316. The firm cites its earnings estimates moving higher to consensus levels for the upgrade. While casualty reserves remains a risk for Travelers, this is not unique to the company nor are they particularly outsized, the analyst tells investors in a research note. JPMorgan believes the company's recent actions should help mitigate the risk of adverse reserve development.
• CGNX JPMorgan upgraded Cognex to Overweight from Neutral with a price target of $75, up from $65. The company "continues to innovate" with its AI-enabled solutions that are advancing customer reach and acquisition, the analyst tells investors in a research note. The firm believes Cognex is "entering a new chapter," defined by AI-enabled vision systems and end market diversification. It believes Cognexs ongoing sales model transformation is driving a doubling of the customer base.
• TKR JPMorgan analyst Tomohiko Sano upgraded Timken to Overweight from Neutral with a price target of $150, up from $130. The company has a "compelling" growth runway over the next several years, the analyst tells investors in a research note. The firm believes Timken's 2028 targets are achievable. With exposure to secular end markets including defense, power and electrification, automation, and humanoids, Timken's demand backdrop is solid, the analyst tells investors in a research note.
• RRX JPMorgan raised the firm's price target on Regal Rexnord to $240 from $230 and keeps an Overweight rating on the shares. The firm expects the smaller cap automation industrial sub-sector to outperform the broader market, as "mother machines" signal a cyclical inflection and accelerating structural growth. Industry data show a durable rebound in industrial activity, with broad-based order strength, the analyst tells investors in a research note.
• HLIO JPMorgan analyst Tomohiko Sano raised the firm's price target on Helios Technologies to $100 from $90 and keeps an Overweight rating on the shares. The firm expects the smaller cap automation industrial sub-sector to outperform the broader market, as "mother machines" signal a cyclical inflection and accelerating structural growth. Industry data show a durable rebound in industrial activity, with broad-based order strength, the analyst tells investors in a research note.

• ADSK Morgan Stanley lowered the firm's price target on Autodesk to $315 from $350 and keeps an Overweight rating on the shares. Stable reseller checks support a "solid Q1 with modest upside to Street forecasts," the analyst tells investors in a preview. A slightly lower price target is warranted by recent market volatility across software, as large cap software and design software peers have seen similar multiple compression in recent weeks, the analyst added.

• FROG Stifel raised the firm's price target on JFrog to $85 from $75 and keeps a Buy rating on the shares. The firm's recently completed survey of the JFrog customer base was "positive and supportive of sustained future growth," the analyst tells investors.
• TMDX Stifel analyst Thomas Stephan lowered the firm's price target on TransMedics to $75 from $85 and keeps a Hold rating on the shares. After having spoken with four U.S. heart transplant key opinion leader surgeons, the firm says it expects near-term heart market weakness to continue, but remains optimistic about an intermediate-term return to more-normal growth.

• MU UBS raised the firm's price target on Micron to $1,625 from $535 and keeps a Buy rating on the shares. Micron is expected to benefit from long-term memory supply agreements that could lock in pricing and demand visibility across much of the industry, supporting significantly higher earnings and free cash flow forecasts through 2029 as AI-driven structural changes improve the durability and stability of the memory market, the analyst tells investors in a research note.

• FRT Wells Fargo raised the firm's price target on Federal Realty to $129 from $120 and keeps an Overweight rating on the shares. The firm maintains a positive view on Retail REIT fundamentals into upcoming meetings at June Nareit and continues to have conviction on secular tailwinds for the space. However, Wells notes less attractive relative valuation following outperformance year-to-date.
• IVT Wells Fargo raised the firm's price target on InvenTrust Properties to $36 from $34 and keeps an Overweight rating on the shares. The firm maintains a positive view on Retail REIT fundamentals into upcoming meetings at June Nareit and continues to have conviction on secular tailwinds for the space. However, Wells notes less attractive relative valuation following outperformance year-to-date.
• KRG Wells Fargo raised the firm's price target on Kite Realty to $29 from $28 and keeps an Overweight rating on the shares. The firm maintains a positive view on Retail REIT fundamentals into upcoming meetings at June Nareit and continues to have conviction on secular tailwinds for the space. However, Wells notes less attractive relative valuation following outperformance year-to-date.
• PECO Wells Fargo analyst Cooper Clark raised the firm's price target on Phillips Edison to $42 from $40 and keeps an Equal Weight rating on the shares. The firm maintains a positive view on Retail REIT fundamentals into upcoming meetings at June Nareit and continues to have conviction on secular tailwinds for the space. However, Wells notes less attractive relative valuation following outperformance year-to-date.
• REG Wells Fargo raised the firm's price target on Regency Centers to $88 from $85 and keeps an Overweight rating on the shares. The firm maintains a positive view on Retail REIT fundamentals into upcoming meetings at June Nareit and continues to have conviction on secular tailwinds for the space. However, Wells notes less attractive relative valuation following outperformance year-to-date.
• STT Wells Fargo raised the firm's price target on State Street to $171 from $162 and keeps an Overweight rating on the shares. The firm says its meeting with CFO John Woods reinforced its view that State Street is undergoing a multiyear inflection for organic growth, operating leverage, and EPS. It seems that two to three years of behind-the-scenes work is becoming more visible, Wells notes. The firm sees State Street re-rating higher.
• PH Wells Fargo analyst Joseph O'Dea lowered the firm's price target on Parker-Hannifin to $950 from $980 and keeps an Overweight rating on the shares. The firm notes that 2027 consensus EPS is about $34.00. Excluding M&A not yet closed and assuming tax conservatism, Wells sees an initial guide mid-point between $33.00 and $33.30. With M&A, a lower tax rate and slightly better incrementals, it could ultimately be over $34.50, Wells adds.
• CDNS Wells Fargo raised the firm's price target on Cadence Design to $425 from $400 and keeps an Overweight rating on the shares. The firm says its meetings reiterated Cadence's strong broad-based demand, while Wells comes away incrementally positive on the company's Agentic AI strategy and ability to monetize new tools that could eventually drive a higher EDA share of R&D spending.
• CASY Wells Fargo raised the firm's price target on Casey's General Stores to $910 from $745 and keeps an Overweight rating on the shares. The firm says Q4 could be a rare EPS miss for Casey's General Stores, albeit modest, on lower fuel margins. Initial 2027 guide will likely be viewed as conservative, given historical ability to beat and appetite for M&A as Fikes gets digested, Wells adds.

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