Early Look

Friday, July 10, 2026

U.S. futures are looking mixed with the S&P flat overnight and Nasdaq futures giving back a little of yesterday’s gains (but still on track with a weekly advance of 1.4%) as attention remains on semiconductors and memory chips after was SK Hynix (SKHY) priced its 17.79M share ADR IPO at $149.00 as the South Korean chipmaker will join the Nasdaq in the largest-ever market debut by a foreign company, after raising $26.51 billion in yesterday's offering. U.S. stocks close higher Thursday, with tech-heavy Nasdaq booking sharp gain over 1.3% as the PHLX chip index (SOX) surged 3.06%, up for a second straight session, while the Smallcap Russell 2000 rising over 1% as well. In Asian markets overnight, The Nikkei Index advanced 813 points to 68,557, the Shanghai Index fell -40 points to 3,996, and the Hang Seng Index rose 144 points to 24,175. In Europe, the German DAX is up 20 points to 25,139, while the FTSE 100 gains 8 points to 10,480. In earnings this morning, ahead of the unofficial start of the quarter next week with big banks kicking things off Tuesday, airline Delta (DAL) reported a top and bottom line beta and reaffirmed its outlook for the year this morning. Geopolitical risk also kept investors on edge after Iranian armed forces launched attacks on U.S. military infrastructure in the Gulf states on Thursday, after U.S. strikes on Iran's southern coastal and eastern provinces, yet oil prices are lower.

• The Dow Jones Industrial Average rose 138.99 points, or 0.27%, to 52,487.38
• The Nasdaq Composite jumped 336.24 points, or 1.30%, to 26,206.89
• The Russell 2000 Index advanced 36.16 points, or 1.22% to 2,992.54

• 1:00 PM EST                Baker Hughes Weekly rig count data

• Delta Airlines (DAL) Q2 adj EPS $1.56 vs. est. $1.46; Q2 operating margin 9.4%; Q2 operating revs $17.67B vs. est. $17.53B; still sees FY adj EPS $6.50-$7.50, reaffirming the range it first issued in January after leaving it out of its April first-quarter release; guides Q3 EPS $2.00-$2.50 vs. est. $2.02 while expects mid-teen revenue growth and an operating margin of 11% to 13%.
• Pepsi (PEP) was downgraded to Neutral at Citigroup on continued weakness in North America at PFNA & PBNA, which have remained soft despite PEP's strategic actions (price reductions, innovation, shelf space gains).
• Toll Brothers (TOL) was upgraded to Buy at Citigroup in homebuilders with a $176 TP ahead of Q2 homebuilder earnings season. Citi said it expects homebuilders to point to 2H GM stabilization after 3+ years of compression, as well as significant outperformance among higher ASP communities & more affluent homebuyers.

• Rare earths startup ReElement no longer seeking $80 million Pentagon loan, administration sources say, Reuters reported.
• Solaris Energy Infrastructure Inc. (SEI) will replace Catalyst Pharmaceuticals Inc. (CPRX) in the S&P SmallCap 600 effective prior to the opening of trading on Wednesday, July 15.
• WD-40 (WDFC) Q3 EPS $2.24 vs. est. $1.56 with margins 56.6%; Q3 sales rose 24% y/y to $195.1M vs. est. $172.8M; Q3 net income rises 44% to $30.2M; guides FY sales $675M-$690M vs. est. $661.6M and sees year margins 54.5%-55.5%; updates guidance to reflect reclassification of Americas Homecare and Cleaning Brands.

• Cohen & Steers, Inc. (CNS) preliminary assets under management of $100.1B as of June 30, 2026, an increase of $644M from assets under management of $99.5B at May 31, 2026. The increase was due to market appreciation of $611 million and net inflows of $495 million, partially offset by distributions of $462 million.
• Polymarket has sought regulatory approval to offer margin trading in the U.S., which would allow users to bet on events with less capital upfront, Bloomberg News reported. The company last week filed an application with the National Futures Association to operate as a futures commission merchant and register as a swap firm through its affiliate Coming Home GBA (watch SCHW, HOOD).

• Simulations Plus (SLP) Q3 adj. EPS $0.30 vs. est. $0.23 (beat); rev $21.9Mm vs. est. $20.9Mm (beat), +7% YoY; software rev $12.6Mm (flat YoY); services rev $9.3Mm (+20% YoY); gross profit $15.1Mm (69% margin, vs. 64% prior year); operating Income $4.5Mm; adj. EBITDA $7.9Mm (36% margin) vs est $6.47B; cash $35.3Mm.

• CCC Intelligent Solutions (CCC) shares rise after Reuters reported the software firm has hired Morgan Stanley to advise on a sale process and has reached out to prospective buyers, including private equity firms, according to three people familiar with the matter
• ChipMOS Technologies (IMOS) said Q2 revenue increased 6.5% sequentially and 28.7% y/y to NT$7,383.1M (US$231.8M); June revenue rose 6.5% from May and 37.2% from a year earlier to NT$2,538.4M (US$79.7M).
• Netflix (NFLX) is exploring live TV and bundles amid decline in engagement, the WSJ reported last night. While Netflix customer defections remain at industry lows, the company's subscriber engagement has been showing signs of decline. In response, Netflix executives have recently discussed adding live channels that would continuously stream certain programs and also explored bundling other subscription-based streaming services.
• Sonos (SONO) has laid off several Senior executives from its Design and product teams as part of a restructuring effort. The cuts affected long-serving employees, including Design and UX leaders.
• Commerce Secretary Howard Lutnick called on Samsung Electronics Co. (SSNLF) and Sk Hynix Inc. (SKHY) to expand memory chip production in the US to help address a global shortage in components critical to the development of artificial Intelligence.

Mid-Morning Look

Friday, July 10, 2026

U.S. stocks are bouncing between gains and losses in early choppy trade, though the S&P and Nasdaq are on track for weekly advances as Tech, Energy and Communications the leaders this week. Early on, nine of eleven S&P sectors are higher, with early strength in communications, materials and consumer staples. Attention overnight was memory/chip stocks as SK Hynix (SKHY) 17.79M share ADR IPO priced at $149.00 as the South Korean chipmaker will join the Nasdaq in the largest-ever market debut by a foreign company, after raising $26.51 billion in yesterday's offering. No major US economic data today (or really for week), but attention turns to inflation data next week with June CPI and PPI. Also, earnings season around the corner with lots of results in financials coming next week JPM, WFC, BAC, GS, C, BLK as well as other notables GE, JNJ, BNY, UNH and NFLX. The carry trade has been strong, but the Japanese yen bounced on Friday on news that Japan plans to encourage pension funds to increase their holdings of domestic financial assets, trying to support the battered currency than intervention. Japanese Finance Minister Satsuki Katayama said the government was pursuing measures that would include encouraging the Government Pension Investment Fund, one of the largest pension funds in the world, to make "substantially greater investments in Japanese financial assets". The dollar fell to an intraday low of 161.285 vs the yen post comments. Before Friday's news, the yen had been languishing near 40-year low

• Gaming software: Jefferies Survey shows strongest mobile gaming momentum, with Vector Driving Share Gains. Jefferies said its 2026 mobile gaming AdTech survey was most positive on Unity (U), with the company gaining roughly 200 bps of advertiser spend share and ranking as the top platform for expected incremental budget growth. Also, Jefferies’ 2Q survey of 30 e-commerce advertisers was incrementally positive, with APP’s share of network spend rising to 11% from 10% in 4Q25 and nearly all respondents expecting further share gains through 2026.
• In Crypto: stablecoin provider CRCL shares jumped after the company received final regulatory approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank. The charter allows Circle to act as custodian for its own reserves and hold crypto assets on behalf of institutional clients. Bitcoin and Ethereum also rise as worries over the U.S.-Iran conflict ease, improving appetite for risk assets. Positive developments in crypto legislation are providing further support, as momentum is building behind U.S. market-structure legislation with reports indicating that the Clarity Act could reach the Senate later this month.

• CRCL +7%; after the company received final regulatory approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank. The charter allows Circle to act as custodian for its own reserves and hold crypto assets on behalf of institutional clients.
• META +6%; adding to yesterday strength after detailing a massive AI / DC capacity expansion plan to reach 7GW of compute by end ’26 and add another 7GW in ’27 to hit a whopping 14GW of total compute; also starting the ramp of their own custom ASIC chip from AVGO.
• SEI +3%; as will replace Catalyst Pharmaceuticals Inc. (CPRX) in the S&P SmallCap 600 effective prior to the opening of trading on Wednesday, July 15.
• WDFC +22%; on earnings and guidance as Q3 EPS $2.24 tops est. $1.56 with margins 56.6% and sales rose 24% y/y to $195.1M vs. est. $172.8M; guides FY sales $675M-$690M vs. est. $661.6M and sees year margins 54.5%-55.5%.

• FRMI -16%; after prices upsized offering of $375M in convertible senior notes.
• IONS -6%; follow through weakness after share price fell -24% on Thursday following a failed heart-drug study with partner AZN (company did reiterate its 2026 guidance).
• SPCX -2%; dropping back below its opening IPO price of $150 again.
• XBI -3%; as Biotech pulls back from record highs as Biotech takes a breather following massive run since mid-June - remains up 31% YTD (lots of early weakness MRNA, VKTX,

Closing Recap

Thursday, July 09, 2026

U.S. stocks surged Thursday, propelled again by the Tech trade (XLK) as the Nasdaq remains volatile, but a leader (XLK +28% YTD). The Nasdaq 100 bounced off its 50dma support of $713.75 and propelled higher (above $722) led by chip stocks (SOX), optical stocks, AI data plays while large cap tech (GOOGL, MSFT, NVDA) and software lagged. Today’s rally came despite renewed tensions in the Middle East after the U.S. military began launching fresh strikes on Iran hours after President Trump declared the eight-week ceasefire was over. After a 5% spike on Wednesday, oil prices resumed their move lower Thursday, helping ease Treasury yields. In Fed news, NY Fed President John Williams flagged AI-driven demand as his primary inflation concern, warning that if it creates a sustained impulse to demand relative to supply, the Fed may need to raise rates. Fed fund futures now pricing in 34.4 bps of hikes by year end. In September we see 19.2 bps. The Smallcap Russell 2000 also participated in today rally, rising over 1%. Micron (MU) shares rose over 4% on pledges of massive US investment (over $250B) and broader chip sector optimism, while other chip-related names like SanDisk (SNDK), Lumentum (LITE), and memory plays showed solid gains ahead of tomorrow’s Hynix US listed trading day. META shares were a standout on AI headlines, rising 4.7%. Market breadth was positive as seven of eleven S&P sectors closed higher.

• June Existing Home Sales -2.4% to 4.09M annual rate vs May +3.7% (prev +3.2%); June inventory of homes for sale 1.56M units, 4.6 months' worth; U.s June National median home price for existing homes at record high $440,600, +1.8% from June 2025.

• Meanwhile oil prices pulled back after rising over 5% on Wednesday as WTI crude dropped -$1.44 or 1.96% to settle at $72.08 per barrel and Brent crude declined -$1.72, or 2.2% to settle at $76.30 per barrel. Headline risk eased a day after the U.S. launched fresh attacks against Iran.
• The U.S. dollar rallied early vs safe have Japanese yen, rising to best level since 1986 around 162.58, but overall DXY was flattish on the day. The U.S. dollar index (DXY) has advanced 2.6% year-to-date and 1.8% in the past six months to $100.88.
• U.S. Treasuries firmed with yields edging lower as investors took advantage of this week's selloff to buy bonds. The 10-year yield fell -1.5bps to 4.551% after hitting a seven-week high on Wednesday around 4.6% while the U.S. 30-year bond yield was little changed at 5.065%. Two year notes slid 2 basis points (bps) to 4.18%. On Tuesday, the 2-year yield touched its highest level in two weeks.

• Discount Retail: FIVE upgraded to Outperform with $220 tgt at Mizuho as sees upside to 2H Street estimates as new customers are being retained at a high rate; said paid Instagram and TikTok influencers are amplifying trends and expanding reach across its core customer demographics.
• Apparel Retail: LEVI Q2 adj EPS $0.28 vs. est. $0.24 and revs $1.56B tops est. $1.52B; guides FY adj EPS $1.46-$1.52 vs. est. $1.50 and rev growth up 7%-7.5%; sees FY26 organic rev growth 5.5%-6%; raises quarterly dividend to $0.16 from $0.14.
• Food & Beverages: PEP posted mixed Q2 results as adj EPS of $2.20 per share fell short of the $2.21 a share expected while revs rose 6.4% y/y to $24.18B above the $23.95B while backed its full-year outlook for earnings and sales growth. MNST declares two-for-one stock split. BRBR shares fell after new CEO announced late yesterday, appointed veteran consumer packaged goods executive Michael Axelrod as its next President and CEO, effective July 29, 2026.
• Toy Retail: MAT was downgraded to Sell from Neutral at Goldman Sachs as views as an execution story with a higher than average degree of operational complexity over the next six to 12 months.
• In Home Furnishings: Barclays said home furnishing price increases Y/y for WSM were stable in June, tracking ~LSD Y/y as cycles changes last year, while ARHS remain elevated at +HSD Y/y. Shipping/delivery fees have also moved higher. Implications positive for sales/margins.

• In Casinos & Gaming: CZR was downgraded from Overweight to Equal Weight saying believes there is low likelihood that the company accepts a topping bid to Fertitta's current $31 per share buy-out offer. In prediction markets, Michael Burry, the investor famed for predicting and profiting from the 2008 U.S. housing market collapse, has ‌bought shares of sports-betting platforms FLUT and DKNG, ‌wagering regulatory scrutiny will eventually curb the threat posed by prediction markets. Shares of LVS hit 52-week lows while WYNN bounces off its recent 52-week lows.

• Transports: Citigroup upgraded KNX and SAIA to Buy and ODFL to Neutral following recent share pullbacks, citing Q2 trucking earnings on pace for some of the strongest year-over-year EPS gains in years on tighter capacity, higher truckload rates, and margin recovery, though the firm flags more modest upside in 2H26 relative to 1H. AMZN is pushing to quickly grow volume for its U.S. delivery offering through lower shipping rates for prospective customers, parcel pricing experts told Supply Chain Dive, competitive or lower than FDX, UPS.
• Multi Industry: Wolfe Research downgraded PNR to Peer Perform noting they simply do not see the re-rating catalyst thro' YE. Pool share losses are a concern and must be addressed in order to restore investor confidence. GWW was upgraded to Peer Perform at Wolfe noting the stock has run higher and the valuation has extended but they still see an upside skew to FY26/27 Street and valuation is reasonable vs. peers.
• Containerboard & Packing sector: Citigroup named BALL, SON and CCK as top picks into Q2 earnings, citing solid underlying demand in beverage cans and containerboard, compelling valuation at 8.5x NTM EBITDA versus the 5-year average of 9.3x, and expectations that most producers will reiterate full-year guidance despite Q2 and 2026 estimates trimmed roughly 1% on higher recycled fiber and freight cost. PKG was downgraded at Wells Fargo noting the company has been a relative outperformer through the Middle East conflict - helped by a flight to quality - and now trades at a sizable premium vs. key peers.
• Metals & Mining and Steel sector: INMD shares rise as Steel Partners, an investment firm and long-time InMode shareholder, offers to buy co for $16.75 per share in cash; offer values INMD at about $963M. Precious metal prices and gold/silver miners bounced after tumbling Wednesday.
• In Chemicals: New York Attorney General Letitia James filed a sweeping lawsuit against chemical manufacturers MMM, CC, CTVA and DD, accusing them of knowingly contributing to decades of contamination from toxic PFAS compounds, commonly known as forever chemicals.

• Brokers & Exchanges: CBOE received a positive catalyst call from Deutsche Bank in Q2 preview for Brokers/exchanges saying they favored E-Brokers followed by oversold Exchanges. Overall, the firm expects the Q2 earnings season to be volatile once again amid mixed results vs expectations, escalating product innovation that creates perceived market share challenges, and a continued uncertain macro backdrop. The firm said it especially favors CBOE as views the stock as oversold (albeit recently recouping some losses) on perceived market-share loss to any risk of eventual success in perpetual futures products, which it views as overblown.
• Financial info Services: Deutsche Bank previewed the sector saying sees opportunity for MSCI to continue to outperform on a sustained acceleration that is driven by new products and solutions – while is also positive on TRU.  The firm said info services stocks remain at the mercy of the Ai trade; a slight unwind over the last few days has resulted in some strength but that may prove to be short-lived. The overall macro picture remains dynamic and volatile with rates staying elevated.
• FinTech sector TOST was upgraded to Buy from Neutral at Goldman Sachs as it looks for opportunities in underperforming payment stocks. Specifically, the firm is becoming more positive on higher-quality companies with compressed valuations.
• In Insurance: AJG and RYAN were both downgraded to Peer Perform at Wolfe saying a higher capital returns is not enough, in their view, to pacify investors' concerns about soft pricing (cycle could last +8years). Growth prospects are bleak and reserving deficiencies should come up to the surface. A less active hurricane season swells excess capital.

• AZN and IONS shares fall after their Phase III trial for heart drug Wainua (eplontersen) failed to meet its primary endpoint in patients with transthyretin-mediated amyloid cardiomyopathy (ATTR-CM). The news was positive for other ATTR related drug by BBIO.
• FBRX shares jumped after statistically significant FB102 benefit observed by day 64 and continued through week 24; said FB102-treated subjects continued improving through week 24 after completion of the 12-week treatment period.
• NTRA said its personalized cancer test, Signatera, received certification under the European Union's diagnostic device rules. Signatera is used to detect traces of cancer that may remain after treatment and monitor for recurrence.
• QGEN shares jumped after Bloomberg reported the company is drawing early takeover interest from firms including EQT Ab and Advent, while KKR is also among private equity firms that have expressed interest in Qiagen, citing sources. https://tinyurl.com/38z6ncez
• SRPT was upgraded to Outperform at Wolfe saying stock gains in SRPT have been transient but believes this would shift given a different market regime and stock setup currently. MAD data H2, readthrough from Novartis, and increasing investor attention on DM1/FSHD should benefit SRPT.

• In Tower & Telecom: AMT was upgraded to Outperform at Wolfe Research saying the end of DISH-related rent losses and completion of the Sprint/T-Mobile integration remove two major overhangs on U.S. tower growth, while sees growth to reaccelerate as churn normalizes.
• Optical stocks surged after positive Rosenblatt analyst comments saying for LITE, they view the recent weakness as a buying opportunity as demand remains incredibly strong, supply is constrained and meaningfully below demand and scale up CPO is a massive content gain opportunity for Optical over multiple years. For AAOI the firm expects to beat and raise and for 2Q26 to mark a watershed quarter where this starts happening consistently.

• Hardware sector: CBRS shares rose after announced a major expansion of its European infrastructure as will bring its first European data center capacity online by the end of 2026, with rapid build-out across France and the Nordics. The company plans to expand total capacity to 200 MW by the end of 2027.
• IT Services & Consulting: RXT shares tumbled after the company said it expects a reduction of $150M in revenue and $20M in EBITDA for full year 2026; now expects revenue to be between $2.45B and $2.55B (midpoint at $2.5B), versus the prior forecast range of $2.6B to $2.7B. Indian IT services Tata beat quarterly revenue estimates, helping boost the space (CTSH, ACN)
• In Media: PSKY shares tumbled as the company will not close its $110B acquisition of WBD before July 22, the Oregon attorney general's Office said on Wednesday, pushing out the timeline for the deal's closure by an additional week. Earlier Reuters reported US States are concerned the deal for Warner Bros will hurt competition. California Ag Bonta has taken the lead in investigating whether the deal violates U.S. laws against mergers that would unlawfully harm competition. Arete downgraded PSKY to sell from neutral and slashed its price target to $2, a Street low, citing concerns about the debt burden from its planned merger with Warner Bros. Discovery.

• A generally big bounce back for the semiconductor index as the SOX recovers off its 50dma touched yesterday of around 12,525, jumping back around 13,175 late day in a near 5% move led by memory stocks (MU, SNDK) and equipment stocks (AMAT, ONTO, LRCX)
• AEHR shares jumped after received a follow-on production order from its lead silicon photonics customer for a fully automated FOX-XP wafer-level burn-in system.
• LASR shares jump after awarded $627 million joint laser weapon system contract; initial award valued at $44 mln, program ceiling up to $627 mln.

Street Recommendations

Friday, July 10, 2026

• EXR Barclays raised the firm's price target on Extra Space Storage to $172 from $170 and keeps an Overweight rating on the shares. Self-storage key performance indicators have begun a bottoming process, which the firm anticipates will continue over the next several years, the analyst tells investors.
• IONS Barclays lowered the firm's price target on Ionis Pharmaceuticals (IONS) to $90 from $115 and keeps an Overweight rating on the shares after the company and partner AstraZeneca (AZN) announced that the CARDIO-TTRansform Phase 3 trial for eplontersen did not meet the primary efficacy endpoint.

• HLI BofA initiated coverage of Houlihan Lokey with a Buy rating and $164 price target. While weak sponsor activity has weighed on sentiment year-to-date, the firm views the pullback in shares presenting an attractive entry point to gain exposure to what it considers "the Goldman Sachs of middle-market M&A," the analyst tells investors.
• MSCI BofA raised the firm's price target on MSCI to $730 from $715 and keeps a Buy rating on the shares. BofA is constructive on the setup for Q2 earnings on better than expected debtissuance trends, which is viewed as a source of upside, the analyst tells investors in a research note.
• SPGI BofA lowered the firm's price target on S&P Global to $550 from $575 and keeps a Buy rating on the shares. BofA is constructive on the setup for Q2 earnings on better than expected debt issuance trends, which is viewed as a source of upside, the analyst tells investors in a research note.
• KO BofA raised the firm's price target on Coca-Cola to $95 from $90 and keeps a Buy rating on the shares. Coca-Cola remains a high-quality global staples compounder, with healthy consumption trends, resilient demand, limited inflation exposure through its asset-light model, and strong balance sheet flexibility supporting its outlook ahead of Q2 earnings, the analyst tells investors in a research note.

• DLR BTIG initiated coverage of Digital Realty with a Buy rating and $215 price target. The firm believes Digital Realty offers investors a compelling growth opportunity through its existing portfolio and external development pipeline while providing direct exposure to the secular surge in global data center demand. The company's 300-plus data centers are concentrated in Tier 1 markets where power scarcity and hyperscaler demand have tightened supply, creating meaningful mark-to-market upside on lease renewals and driving appreciation in underlying asset values, BTIG argues.

• LILAK Citi downgraded Liberty Latin America to Neutral from Buy with a price target of $8, up from $6.45, citing both recent share price strength after the special dividend of preferred stock to common shareholders and the absence of meaningful forward progress to consistently annual revenue growth on a rebased basis. Rebased annual revenue growth remains "underwhelming," says the analyst, adding that the firm could revisit its thesis if it sees positive signs that rebased revenue growth can accelerate.
• R Citi downgraded Ryder to Neutral from Buy with a price target of $280, up from $276. The firm sees limited risk/reward with valuation likely pricing in Ryder's targeted upturn peak, notes the analyst, who adds that the potential repeal of the truck excise tax has introduced a possible headwind to used vehicle sales.
• LVS Citi lowered the firm's price target on Las Vegas Sands to $73 from $78.50 and keeps a Buy rating on the shares while adding a "downside 30-day catalyst watch." The firm expects Las Vegas Sands' Macau operations to be the operator with the greatest quarter-over-quarter EBITDA market share decline in Q2 and believes this will be negative to its near-term share price performance, the analyst tells investors.
• MLCO Citi lowered the firm's price target on Melco Resorts to $9.40 from $10.50 and keeps a Buy rating on the shares. Q2 is "arguably Macau's toughest quarter since reopening," with GGR impacted by both the global soccer tournament and some extremely unfavorable hold rates, says the analyst, who sees the resulting operating deleverage as likely translate to a 7% year-over-year fall in Q2 industry EBITDA.

• CTSH Deutsche Bank lowered the firm's price target on Cognizant (CTSH) to $55 from $70 and keeps a Buy rating on the shares. The firm, which believes the IT Services demand backdrop deteriorated further through calendar Q2, is cutting estimates for all but Genpact (G) and lowering price targets across the group, adding that it does not think the bottom is in
• DAVA Deutsche Bank lowered the firm's price target on Endava (DAVA) to $3 from $3.50 and keeps a Hold rating on the shares. The firm, which believes the IT Services demand backdrop deteriorated further through calendar Q2, is cutting estimates for all but Genpact (G) and lowering price targets across the group, adding that it does not think the bottom is in
• EPAM Deutsche Bank analyst Nate Svensson lowered the firm's price target on Epam Systems (EPAM) to $85 from $110 and keeps a Hold rating on the shares. The firm, which believes the IT Services demand backdrop deteriorated further through calendar Q2, is cutting estimates for all but Genpact (G) and lowering price targets across the group, adding that it does not think the bottom is in
• G Deutsche Bank lowered the firm's price target on Genpact to $31 from $35 and keeps a Hold rating on the shares. The firm, which believes the IT Services demand backdrop deteriorated further through calendar Q2, is cutting estimates for all but Genpact and lowering price targets across the group, adding that it does not think the bottom is in
• GLOB Deutsche Bank lowered the firm's price target on Globant (GLOB) to $33 from $50 and keeps a Hold rating on the shares. The firm, which believes the IT Services demand backdrop deteriorated further through calendar Q2, is cutting estimates for all but Genpact (G) and lowering price targets across the group, adding that it does not think the bottom is in

• CNO Jefferies downgraded CNO Financial to Hold from Buy with a price target of $55, up from $53, stating that the downgrade is consistent with the firm's "shifting to offense" thesis for the second half of the year. The downgrade is "largely on valuation" following the stock's year-to-date run, which was likely aided by greater investor conviction in ROE improvement and positive sentiment on underwriters, given limited private credit concerns, the analyst tells investors.

• DAN JPMorgan lowered the firm's price target on Dana to $40 from $45 and keeps an Overweight rating on the shares. The firm sees the average auto supplier to come in marginally ahead of consensus on EBITDA, with potential for upside given largely stable and predictable production cadence through the quarter, but adds that the sector bar is higher after optimistic intra-quarter commentary.
• THRM JPMorgan raised the firm's price target on Gentherm to $41 from $38 and keeps a Neutral rating on the shares. The firm sees the average auto supplier to come in marginally ahead of consensus on EBITDA, with potential for upside given largely stable and predictable production cadence through the quarter, but adds that the sector bar is higher after optimistic intra-quarter commentary.
• LEA JPMorgan analyst Rajat Gupta raised the firm's price target on Lear to $159 from $153 and keeps an Overweight rating on the shares. The firm sees the average auto supplier to come in marginally ahead of consensus on EBITDA, with potential for upside given largely stable and predictable production cadence through the quarter, but adds that the sector bar is higher after optimistic intra-quarter commentary.
• VC JPMorgan raised the firm's price target on Visteon to $168 from $165 and keeps an Overweight rating on the shares. The firm sees the average auto supplier to come in marginally ahead of consensus on EBITDA, with potential for upside given largely stable and predictable production cadence through the quarter, but adds that the sector bar is higher after optimistic intra-quarter commentary.
• MT JPMorgan analyst Dominic O'Kane upgraded ArcelorMittal to Neutral from Underweight with a price target of EUR 57, up from EUR 45. The firm is positive on the earnings trajectory for ArcelorMittal and SSAB across 2026-28, but its Neutral recommendations reflect greater price target upside in Voestalpine and Salzgitter, the analyst tells investors.

• IT Morgan Stanley analyst Toni Kaplan lowered the firm's price target on Gartner to $173 from $183 and keeps an Equal Weight rating on the shares. FX-neutral growth is expected to modestly accelerate in Q2, supported by stronger-than-expected payment volume growth, while web traffic remains weak but has improved slightly from recent lows, the analyst tells investors in a research note.

• LASR Needham raised the firm's price target on nLight to $90 from $80 and keeps a Buy rating on the shares following the announcement of a directed energy award from the Pentagon, with an initial value of $44MM and a total program ceiling of up to $627M. On the near-term impact, a portion of the $44M will be realized in the second half of the year to kick-start the program, which will involve delivering initial 150kW prototypes, the analyst tells investors in a research note. Looking to 2027, nLight will see additional program awards involving subsequent iterations that scale to 300kW to 500kW, the firm states, adding that as the only pure-play in what most agree will be a large market, nLight deserves a premium valuation.

• AMAT Stifel raised the firm's price target on Applied Materials to $650 from $530 and keeps a Buy rating on the shares. The semiconductor equipment sector is positioned for continued growth as AI-driven demand outpaces supply, creating capacity constraints that could enable major equipment makers to benefit from stronger pricing power through 2027, the analyst tells investors in a research note.
• CEVA Stifel analyst Ruben Roy raised the firm's price target on Ceva to $50 from $42 and keeps a Buy rating on the shares. AI infrastructure companies remain constrained by supply rather than demand, with strong backlogs and capacity commitments supporting continued growth, while recent sector weakness appears to be a valuation reset rather than a fundamental slowdown, the analyst tells investors in a research note.
• COHU Stifel raised the firm's price target on Cohu to $70 from $50 and keeps a Buy rating on the shares. The semiconductor equipment sector is positioned for continued growth as AI-driven demand outpaces supply, creating capacity constraints that could enable major equipment makers to benefit from stronger pricing power through 2027, the analyst tells investors in a research note.
• ICHR Stifel raised the firm's price target on Ichor Holdings to $115 from $76 and keeps a Buy rating on the shares. The semiconductor equipment sector is positioned for continued growth as AI-driven demand outpaces supply, creating capacity constraints that could enable major equipment makers to benefit from stronger pricing power through 2027, the analyst tells investors in a research note.
• INTC Stifel analyst Ruben Roy raised the firm's price target on Intel to $120 from $75 and keeps a Hold rating on the shares. AI infrastructure companies remain constrained by supply rather than demand, with strong backlogs and capacity commitments supporting continued growth, while recent sector weakness appears to be a valuation reset rather than a fundamental slowdown, the analyst tells investors in a research note.
• KLAC Stifel raised the firm's price target on KLA Corp. to $270 from $191 and keeps a Buy rating on the shares. The semiconductor equipment sector is positioned for continued growth as AI-driven demand outpaces supply, creating capacity constraints that could enable major equipment makers to benefit from stronger pricing power through 2027, the analyst tells investors in a research note.
• LRCX Stifel raised the firm's price target on Lam Research to $425 from $325 and keeps a Buy rating on the shares. The semiconductor equipment sector is positioned for continued growth as AI-driven demand outpaces supply, creating capacity constraints that could enable major equipment makers to benefit from stronger pricing power through 2027, the analyst tells investors in a research note.

• DVA UBS raised the firm's price target on DaVita to $270 from $235 and keeps a Buy rating on the shares. DaVita remains on track to achieve its long-term goal of 2% volume growth by 2029 through initiatives aimed at improving patient outcomes, expanding advanced dialysis technologies and GLP-1 use, reducing missed treatments, and enhancing home care services, the analyst tells investors in a research note.

• ABBV Wells Fargo raised the firm's price target on AbbVie to $295 from $260 and keeps an Overweight rating on the shares. The firm could see a modest Skyrizi-driven beat vs. consensus and guidance, helping ease Icotide concerns. Wells cites improved confidence in AbbVie's post-2035 growth strategy driven by APGE deal and IBD combo strategy for the price target increase.
• WDC Wells Fargo raised the firm's price target on Western Digital to $730 from $575 and keeps an Overweight rating on the shares. The firm is now constructive on Western Digital as it sees hard-disk-drive industry fundamentals supporting sustained 20-25-times next twelve months price-to-earnings re-rate.
• XFOR Wells Fargo initiated coverage of X4 Pharmaceuticals with an Overweight rating and $11 price target. The firm believes the Street is materially underestimating the probability of Phase 3 success for mavorixafor in chronic neutropenia, creating an attractive risk/reward ahead of the second half of 2027 readout.
• AZZ Wells Fargo analyst Timna Tanners raised the firm's price target on AZZ Inc. to $144 from $138 and keeps an Equal Weight rating on the shares. The firm notes strong galvanizing demand and its new MO facility drove a small May-quarter beat and guidance raise already reflected in consensus. Management was focused on M&A and appeared eager to resume buybacks. Wells stays on the sidelines given full valuation and rising mill competition.
• CTSH Wells Fargo lowered the firm's price target on Cognizant to $61 from $83 and keeps an Overweight rating on the shares. While the firm anticipates generally in-line Q2 results, continued uncertainty from Middle East may weigh on vendors' near-term visibility and second half of the year outlooks.
• EPAM Wells Fargo lowered the firm's price target on Epam Systems to $125 from $151 and keeps an Overweight rating on the shares. While the firm anticipates generally in-line Q2 results, continued uncertainty from Middle East may weigh on vendors' near-term visibility and second half of the year outlooks.
• GLOB Wells Fargo analyst Jason Kupferberg lowered the firm's price target on Globant to $42 from $50 and keeps an Equal Weight rating on the shares. While the firm anticipates generally in-line Q2 results, continued uncertainty from Middle East may weigh on vendors' near-term visibility and second half of the year outlooks.
• PEP Wells Fargo lowered the firm's price target on PepsiCo to $140 from $150 and keeps an Equal Weight rating on the shares. The firm notes PepsiCo shares closed lower as International strength was quelled by incremental pressure in North America, creating a dynamic where complexion of the model for 2026 is getting a bit worse to deliver low-end of the prior profit range.

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

• Earnings After the Close: AERO FBK

• 7:45 AM ET ICSC Weekly Retail Sales
• 8:30 AM ET                   Consumer Price Index (CPI) headline M/M for June
• 8:30 AM ET                   Consumer Price Index (CPI) headline Y/Y for June
• 8:30 AM ET CPI core – Ex: Food & Energy M/M for June
• 8:30 AM ET CPI core – Ex: Food & Energy Y/Y for June
• 8:55 AM ET                   Johnson/Redbook Weekly Sales
• 11:00 AM ET                 Cleveland Fed CPI for June
• 4:00 PM ET                    Net Long Term TIC Flows for May
• 4:30 PM ET API Weekly Inventory Data

• Earnings After the Close: AEHR EQBK KMTS PXED

• China Q2 GDP, House Prices, Retail Sales and Industrial Output data

• 8:30 AM ET NY Empire Fed Manufacturing for July
• 8:30 AM ET                   Producer Price Index (PPI) headline M/M for June
• 8:30 AM ET                   Producer Price Index (PPI) headline Y/Y for June
• 8:30 AM ET PPI core – Ex: Food & Energy M/M for June
• 8:30 AM ET PPI core – Ex: Food & Energy Y/Y for June
• 10:30 AM ET                 Weekly EIA Inventory Data

• Earnings After the Close: GSBC HOMB JBHT KARO UAL

• 8:30 AM ET                   Continuing Claims
• 8:30 AM ET                   Philly Fed Business Survey for July
• 8:30 AM ET                   Retail Sales M/M for June
• 8:30 AM ET                   Retail Sales – Less Autos for June
• 10:00 AM ET                 Business Inventory M/M for May
• 10:00 AM ET                 Pending Home Sales M/M for June
• 10:00 AM ET NAHB Housing Market Index for July
• 10:30 AM ET                 Weekly EIA Natural Gas Inventory Data

• Earnings After the Close: AA FNB INDB ISRG NFLX SFNC

• Bank America 27th Annual Washington D.C. Health Care Conference, 7/15-7/16, in DC

• 8:30 AM ET                   Building Permits M/M for June
• 8:30 AM ET                   Import Prices M/M for June
• 8:30 AM ET                   Export Prices M/M for June
• 9:15 AM ET                   Industrial Production M/M for June
• 9:15 AM ET                   Capacity utilization for June
• 10:00 AM ET                 University of Michigan Confidence, July-prelim
• 10:00 AM ET                 University of Michigan 1-yr and 5-yr inflation expectations
• 1:00 PM ET                    Baker Hughes Weekly rig count data

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