Early Look

Tuesday, May 19, 2026

US stock futures are trading slightly lower and taking their cue from weakness in Asian tech stocks. Nasdaq 100 futures are leading the way, down 0.6%, with most big tech stocks falling with the exception of Alphabet as Google (GOOGL) announced a joint venture with Blackstone (BX) to create a new U.S.-based company that will offer efficient data center capacity, operations, networking, and Google Cloud's tensor processing units, or TPUs, as a compute-as-a-service offering. In Asian markets, The Nikkei Index fell -265 points to 60,550, the Shanghai Index rose 38 points to 4,169, and the Hang Seng Index gained 122 points to 25,797. Kospi plunges more than 3.5% and Taiex is almost 1.5% weaker. In Europe, the German DAX is jumping 325 points to 24,733, while the FTSE 100 rises 71 points to 10,395. Oil prices are lower this morning, but Treasury yields extend their recent run higher on inflation concerns and fears of Fed rate hikes potentially being on the table in the future (vs cuts). On Monday, Energy and Financials outperformed, while Technology lagged amid pressure on mega caps and semis and Defensive sectors like Consumer Staples, REITs and Healthcare held up relatively well as the market continues rotating between soft landing hopes and global crisis panic with treasury yields and energy prices soaring. The Benchmark 10-yr yield rose 2.7bps to 4.622%, now up over 16bps the last 2 days and up 5 of last 6 to new 52-week highs and highest since 2/12/2025. U.S. stocks got a bounce late day and oil slips overnight after US President Donald Trump said he called off a new bombardment of Iran planned for Tuesday after Saudi Arabia and other Persian Gulf allies wanted more time to pursue diplomacy.

• The Dow Jones Industrial Average rose 159.95 points, or 0.32%, to 49,686.12
• The Nasdaq Composite slumped -134.41 points, or 0.51%, to 26,090.73
• The Russell 2000 Index declined -18.20 points, or 0.65% to 2,775.10

• 8:55 AM ET                   Johnson/Redbook Weekly Sales
• 10:00 AM ET                 Pending Home Sales M/M for April
• 4:30 PM ET API Weekly Inventory Data

• Earnings After the Close: AUNA CAVA EARN EDUC EGHT JHX KEYS MOVE RRGB TOL XELB ZTO

• Deutsche Bank Global Auto industry Conference, 5/19-5/20, in New York
• JP Morgan Global Technology, Media, and Communications Conference, 5/18-5/20, in Boston, MA
• RBC Capital Global Healthcare Conference 5/19/5/20, in New York
• RBC Capital Canadian Industrials Conference 5/19-5/21, in Toronto
• Truist 27th Annual Truist Securities Financial Services Conference, 5/19-5/20 in New York

• The 40-year Japanese government bond yield has risen to 4.39%, the highest since this maturity was introduced in 2007. The 30-year yield has surged to 4.15%, the highest since its debut in 1999 while the 10-year yield has risen to 2.79%, the highest level since the 1990s. This comes as Japanese Prime Minister Sanae Takaichi reversed course on Monday, calling for a supplementary budget to fund energy subsidies in response to surging oil prices from the Middle East conflict, after weeks of denying any need for additional spending.

• Amer Sports (AS) Q1 adj EPS $0.38 vs. consensus $0.31 and revs $1.95B vs. consensus $1.83B; guides Q2 EPS above views and raises FY26 adjusted EPS view to $1.18-$1.23 from $1.10-$1.15 (est. $1.21) and boosts its FY26 revenue growth view to 20%-22% from 16%-18% (vs. consensus $7.74B).
• Eagle Materials (EXP) Q4 EPS $1.91 tops consensus $1.54 and revs rose 2% y/y to $479.1M above consensus $451.98M; Higher Cement sales volume, driven by public infrastructure and private non-residential construction activity, supported Q4 results; said generated record revenue of $2.3B, gross profit margin of 28.3%, and operating cash flow of $614M; said sees continued near-term demand uncertainty due to evolving geopolitical and policy conditions.

• Intuitive Machines (LUNR) received two lunar reconnaissance contracts totaling $20 million. The first contract, worth $15.5 million over three years, supports operations of a camera used aboard NASA's Lunar Reconnaissance Orbiter. The other contract, worth $4.5 million over three years, is for a lunar imaging camera called ShadowCam used on board the Korea Pathfinder Lunar Orbiter.
• Safe Bulkers (SB) announced that it has entered into agreements for the sale of two vessels: MV Xenia, a 2006 Japanese-built Post-Panamax dry bulk vessel, for a gross sale price of $13M, and MV Pedhoulas Commander, a 2008 Japanese-built Kamsarmax dry bulk vessel, for a gross sale price of $14.7M.

• XP Inc. (XP) authorized buyback program of up to 1B reais of outstanding Class A common shares; appointed Gustavo Alejo Viviani as CFO starting August 3 as CFO Victor Mansur will step down on May 31.

• Relay Therapeutics (RLAY) announces initial clinical data demonstrating that zovegalisib has potential for differentiated safety and efficacy in patients with pik3ca-driven Vascular anomalies; no patients discontinued treatment due to adverse events.

• Akamai Technologies Inc (AKAM) proposes $2.6B 0% convertible Senior notes due 2030 and 2032 and said to repurchase about $350M of common stock from note purchasers.
• Analog Devices (ADI) is in advanced talks to acquire artificial intelligence chip company Empower Semiconductor for about $1.5 billion in cash, Bloomberg News reported. Empower is a power management chip company that manufactures voltage-regulating chips for AI processors and data centers https://tinyurl.com/yzwmxdk4
• Blackstone (BX) announced a joint venture with Google (GOOGL) to create a new U.S.-based company that will offer efficient data center capacity, operations, networking, and Google Cloud's tensor processing units, or TPUs, as a compute-as-a-service offering. Blackstone to invest an initial $5 bln in equity to bring 500 megawatts of data center capacity online in 2027, offering capacity and Google's custom AI chips
• CoreWeave (CRWV) shares are lower pre mkt after the Wall Street Journal reported that Alphabet (GOOGL) and Blackstone (BX) plan to create an artificial-intelligence cloud company to rival CoreWeave using Google's specialized chips. CRWV rival Nebius (NBIS) is also down premarket. https://tinyurl.com/fzdu9dkc
• Hut 8 Corp. (HUT) announced an agreement with West Feliciana Parish, Louisiana, to invest approximately $16M to expand local water system capacity in connection with the development of its River Bend AI data center campus.

Mid-Morning Look

Tuesday, May 19, 2026

U.S. stocks seeing some additional early weakness, with major U.S. averages extending their recent three day slide as Treasury yields soar, energy prices remain elevated and inflation fears renewed, all at the same time seeing some profit taking in the biggest tech names that have pushed markets to record highs just last week. The rally has been highly concentrated, with most gains driven by tech, media, and telecom, while risk appetite is at extreme levels and retail trading has surged, but seeing a little break the last few days. Stocks had been on a tear before the past few sessions, with the S&P 500 and Nasdaq hitting fresh record highs last week, and the Dow briefly recapturing the 50,000 level…but market positioning, profit taking, rotation, has seen Energy, Financials and defensive stocks take the lead. Global tensions remain high on reports NATO is discussing deploying troops in the Strait of Hormuz to help ships pass through the waterway if it is not reopened by early July, per Bloomberg. Home Depot (HD) reported better earnings and revs while Q1 comparable average ticket up 2.2% vs flat a year ago and Q1 comparable customer transactions dip 1.3% vs last year while maintains its outlook for year and said Americans were cutting back on large remodeling projects as they navigate macroeconomic volatility, energy prices and struggle with persistent housing affordability. Two-yr U.S. Treasury yield climbs to 4.107% and the 10-year rises 3bps to 4.65% as higher yields pressure Smallcaps (IWM).

• Japan’s preliminary Q1 GDP expanded 2.1% QoQ annualized vs forecast 1.6%. However, the better-than-expected headline number partially reflected a low base effect from a downward revision to Q4 which was cut to 0.8% from 1.3%.

• In Software: the group has bounced the last few days with some profit taking in semiconductors (SOX) after a monster run that saw the SOX rise as much as 71% YTD (now +57% YTD) and tech money rolled into software names (NOW, MSFT, TEAM, MNDY, CRWD, PANW, ZS, WDAY, DDOG, etc.);  AGYS shares jumped on results and guidance as Q4 adj EPS $0.63 vs. est. $0.50; Q4 revs $82.9M vs. est. $81.56M; sees FY27 revenue $365M-$370M, vs. consensus $363.59M and sees FY27 adjusted EBITDA 24% of revenue.
• In Insurance: PFG downgraded to Outperform from Strong Buy at Raymond James following management meetings saying valuation is full; THG was downgraded to Market Perform from Outperform with $203 PT at BMO Capital, taking profits when THG is hitting on all cylinders saying valuation multiples are nearing fair value for many insurers, including THG which exhibits a larger than peer-average home Insurance portfolio. JRVR was downgraded to Neutral from Buy at UBS and cut tgt to $4.75 from $8 driven by a higher equity cost of capital given the increased risks it sees for adverse reserve development hitting the P&L and Book Value.

• AS +3%; after Q1 adj EPS $0.38 vs. consensus $0.31 and revs $1.95B vs. consensus $1.83B; guides Q2 EPS above views and raises FY26 adjusted EPS view to $1.18-$1.23 from $1.10-$1.15 (est. $1.21) and boosts its FY26 revenue growth view to 20%-22% from 16%-18% (vs. consensus $7.74B).
• KR +3%; as defensive sectors like food & staples seeing early strength.
• RLAY +9%; after announcing initial clinical data from Phase 2 ReInspire trial of zovegalisib in vascular anomalies signaling advantage of PI3Kα mutant-selective inhibition. Of the 32 patients enrolled, 20 have been evaluated for efficacy per volumetric response assessment by blinded independent central review (BICR).
• STUB +3%; was upgraded to Buy from Neutral at Guggenheim and raise tgt to $12.50 from $8.50 representing ~30% potential upside saying Stub has reset Street expectations for this year and next year and the bar is extremely low on Direct Issuance and Advertising, therefore any progress would represent upside optionality.

• DRVN -4%; reported Q4 sales, profit that topped estimates, helped by resilient demand for its segments like Take 5, but guided annual EPS $1.15-$1.25, below consensus estimates $1.27, hit by restatement of its FY2023, 2024 financial statements and interim financial results; guided FY revs $1.95B-$2.05B vs. est. $2.03B.
• MRAM -8%; shares dropped after short seller Kerrisdale Capital said they were short shares of the $900M niche industrial memory chipmaker whose stock has soared 300% in a matter of weeks.
• SITM -5%; as announces proposed $1.1B convertible senior notes offering.
• TE -4%; mentioned as a short call on “X” by short seller Fuzzy Panda saying investors confused T1 as an Ai play. It's Not. It is another China Hustle. Expect major accounting restatements coming soon per the report.

Closing Recap

Tuesday, May 19, 2026

US equity futures faded again overnight as investors continue to work through an array of factors generating uncertainty: inflation, the next move on rates from the Fed, Iran negotiations or back on the offensive, earnings.  At least on the earnings front, the news generally has been good, but that tailwind is beginning to die off as the season slows.  That said, we still have some big names left to report, think NVDA, so the earnings theme may not be totally dead yet.  In sentiment today, as equities continued to fade, the Fear and Greed Index still registered 61/100 (Greed) versus last week’s 65 (Greed) and last month’s 68 (Greed).  Early breadth favored decliners by almost 3:1 as small caps underperformed with IWM (-1.85%) versus SPY (-0.92%) and QQQ (-1.24%).  SPY breadth favoring decliners by 11:9, but QQQ breadth was about neutral.  Sector performance also was tilted negative.  Health Care (+1.28%), Consumer Staples (+0.58%) and Utilities (+0.20%) were early outperformers among S&P sector ETFs, while Industrials (-1.41%), Consumer Discretionary (-1.59%) and Materials (-2.60%) paced the underperformers with four sectors gaining versus seven declining.

In data of note today, 10-year Treasury yields now stand near 4.7% and have gained over 70bps since the beginning of the Iran war per @bespokeinvest.  On concentration, once again the S&P 500 has never been more concentrated.  Per @PeterMallouk, NVDA and AAPL now represent over 15% of the index.  Lastly, on timing, per @DataTrekMB, the S&P 500 has posted weaker compounded returns over the June-October period versus January-May or November-December but staying invested has produced superior returns over the long term so seasonal timing has not been the optimal strategy.

Heading into the final hour of trading for the day, US equities retreated from a midday bounce led by declines in financials, industrials materials and technology, off the lows but also off the highs.  Risk sentiment recovered throughout Tuesday as Treasury yields erased some of their early increases and oil fell, giving equities room to largely recover morning losses. Momentum outperformed quality, semiconductors recovered throughout the day after the SOX Index had neared correction territory (semi bounce led to software selling), and value marginally beat growth. The market waits for new inflation data, new Iran headlines and NVDA.  Until then, it could be a mostly sideways slog as investors look forward to Summer.

Asset allocators increased their equity exposure to stocks by the most on record to a net 50% overweight from 13% last month, and are now most overweight stocks since January 2022, Bank of America’s Global Fund Manager Survey shows. The most crowded trade, referenced by 73% of respondents, is long semiconductors, followed by long Mag-7 (14%) and long oil (6%). https://tinyurl.com/ys6ttyc5

• Japan’s preliminary Q1 GDP expanded 2.1% QoQ annualized vs forecast 1.6%. However, the better-than-expected headline number partially reflected a low base effect from a downward revision to Q4 which was cut to 0.8% from 1.3%.

•  WTI crude slipped overnight then continued to fade early in the session as no market-moving Iran headlines emerged to take control of the price action.  No news of an imminent strike was sufficient for investors to institute a buying pause, at least for today. July WTI crude figures settled well off the lows, -$0.23/bbl, or -0.22%, at $104.15.

• Home Improvement Retail: Dow component HD reported Q1 sales $41.77B top consensus $41.52B; Q1 adj EPS $3.43 vs. consensus $3.41; Q1 comp sales rose +0.6% vs. est. +0.9%; reaffirms 2026 view of total sales growth of 2.5%-4.5%, comparable sales growth of approximately flat to 2.0% and gross margin of approximately 33.1%.
• Building Products/Materials: EXP Q4 EPS $1.91 topped consensus $1.54 and revs rose 2% y/y to $479.1M above consensus $451.98M as higher cement sales volume, driven by public infrastructure and private non-residential construction activity, supported Q4 results; said sees continued near-term demand uncertainty due to evolving geopolitical and policy conditions.

• Leisure sector: STUB was upgraded to Buy from Neutral at Guggenheim and raise tgt to $12.50 from $8.50 representing ~30% potential upside to yesterday's close saying Stub has reset Street expectations for this year and next year and the bar is extremely low on Direct Issuance and Advertising, therefore any progress would represent upside optionality.

• In Transports: in logistics, @FreightAlley noted on X, “Daily truckload spot rates bounce back yesterday to road check levels of $3.55/mile. This is happening despite DOT Roadcheck ending on Thursday of last week. It suggests that drivers took off last week and are not returning before the Memorial Day holiday. This is the 3rd highest level this cycle and demonstrates just how tight trucking capacity really is. Could we hit a new all-time record before the week is up? (logistics KNX, WERN, ODFL, JBHT). RXO provides update, including improved outlook for truckload gross profit per load/expects may truckload gross profit per load to outperform seasonality.

• In Insurance: PFG downgraded to Outperform from Strong Buy at Raymond James following management meetings saying valuation is full; THG was downgraded to Market Perform from Outperform with $203 PT at BMO Capital, taking profits when THG is hitting on all cylinders saying valuation multiples are nearing fair value for many insurers, including THG which exhibits a larger than peer-average home Insurance portfolio. JRVR was downgraded to Neutral from Buy at UBS and cut tgt to $4.75 from $8 driven by a higher equity cost of capital given the increased risks it sees for adverse reserve development hitting the P&L and Book Value.

• RLAY announces initial clinical data from Phase 2 ReInspire trial of zovegalisib in vascular anomalies signaling advantage of PI3Kα mutant-selective inhibition. Of the 32 patients enrolled, 20 have been evaluated for efficacy per volumetric response assessment by blinded independent central review (BICR).
• The White House said yesterday that it's adding more than 600 generic drugs to the TrumpRx website, which directs patients to cash-pay drug offerings. The administration is not creating new offerings; it's updated the website to include generic drugs available through other websites like Mark Cuban’s Cost Plus Drug Company and Amazon Pharmacy.

• In Software: the group has bounced the last few days with some profit taking in semiconductors (SOX) after a monster run that saw the SOX rise as much as 71% YTD (now +57% YTD) and tech money rolled into software names (NOW, MSFT, TEAM, MNDY, CRWD, PANW, ZS, WDAY, DDOG, etc.);  AGYS shares jumped on results and guidance as Q4 adj EPS $0.63 vs. est. $0.50; Q4 revs $82.9M vs. est. $81.56M; sees FY27 revenue $365M-$370M, vs. consensus $363.59M and sees FY27 adjusted EBITDA 24% of revenue.
• EDA Sector: Bank America previewed the sector ahead of earnings saying semi R&D reacceleration not in CDNS outlooks, creating upside as Ai, custom silicon and adv. packaging lift EDA reliance. 2030 EPS power suggests meaningful upside: CDNS $17 and SNPS $34 if sales track 15% semi R&D CAGR with operating leverage. The firm said SNPS has more upside catalysts, but CDNS remains top pick on execution, TSM exposure, HW/IP strength and China momentum.
• In Towers: AMT was upgraded to Outperform from Market Perform at Bernsten with an unchanged price target of $207 as believes the market is overstating American Tower's risk while undervaluing its potential upside. With the stock at a five year low multiple, this is the moment to buy the shares the firm said.

• GTM was reinstated at Underperform at Bank America and a $4 PT saying advances in AI are lowering the barriers that once protected ZoomInfo's dominance and position as a premium-priced vendor. GTM's planned shift towards consumption-based pricing in 2H26 also lowers NT visibility and introduces higher down-sell risk.
• MRAM shares dropped after short seller Kerrisdale Capital said they were short shares of the $900M niche industrial memory chipmaker whose stock has soared 300% in a matter of weeks.
• SITM announces proposed $1.1B convertible senior notes offering.
• STX shares fell sharply Monday and again today after management's comments at the JP Morgan conference raised concerns about meeting memory chip demand.

Street Recommendations

Tuesday, May 19, 2026

• ADC Barclays analyst Richard Hightower lowered the firm's price target on Agree Realty to $84 from $86 and keeps an Equal Weight rating on the shares. The firm updated models in the net lease real estate investment trust group post the Q1 results. The "muted" recent share price performance is likely attributable to a steepening yield curve, the analyst tells investors in a research note.
• WPC Barclays raised the firm's price target on W.P. Carey to $78 from $72 and keeps an Underweight rating on the shares. The firm updated models in the net lease real estate investment trust group post the Q1 results. The "muted" recent share price performance is likely attributable to a steepening yield curve, the analyst tells investors in a research note.
• CRWD Barclays analyst Saket Kalia raised the firm's price target on CrowdStrike to $650 from $550 and keeps an Overweight rating on the shares ahead of the earnings report on June 3. The firm models net new annual recurring revenue of $250M, but sees an upside scenario of $265M-$270M.

• TILE Benchmark initiated coverage of Interface with a Buy rating and $36 price target. With the company's focus on driving efficiency and margin expansion through automation and previously untapped cross-selling opportunities having "already yielded proof of concept," the firm sees 2026 shaping up to be a year when the commercial interiors industry returns to sustained growth, the analyst tells investors. The firm believes the company is "primed to take advantage of the secular trends within the industry," the analyst added.

• USAS BMO Capital raised the firm's price target on Americas Gold and Silver to C$12 from C$10 and keeps an Outperform rating on the shares. The firm is positive on the company's successful execution of the optimization strategy of its operations, also noting that its Galena Complex production remains on track, the analyst tells investors in a research note.
• RYN BMO Capital lowered the firm's price target on Rayonier to $25 from $26 and keeps a Market Perform rating on the shares. The company continues to trade at a meaningful discount to underlying private market timberland values, particularly in the U.S. South, though in the absence of clear near-term catalysts to drive a recovery in southern timber pricing, and with timber EBITDA expected to remain flat to down, the firm sees limited drivers for that valuation gap to narrow, the analyst tells investors in a research note.

• BMRN BofA analyst Jason Zemansky lowered the firm's price target on BioMarin to $80 from $85 and keeps a Buy rating on the shares after the company announced the Phase 3 topline results for BMN401 in ENPP1 deficiency with mixed results on the co-primary endpoints. Given a lack of corresponding clinical improvement despite biomarker benefit, the firm thinks it is prudent to remove its risk-adjusted BMN401 forecast from its model, which reduces its price target and trims its 2027-28 topline and EPS forecast by 1%, the analyst tells investors.
• HIMS BofA lowered the firm's price target on Hims & Hers to $28 from $30 and keeps a Neutral rating on the shares after the company announced that it intends to offer $300M aggregate principal amount of convertible notes due 2032 in a private offering. The proposed convertible offering reinforces the firm's view that Hims' near-term margin trajectory remains pressured, with international unlikely to be positive catalyst to profitability in the near-term, the analyst tells investors.
• ZETA reinstated coverage of Zeta Global with a Buy rating and $24 price target. Investors have "miscast - and mispriced" Zeta as a cyclical digital advertising company, but the firm thinks the fundamentals point to a high-growth cash generating platform with durable advantages, driven by Zeta's ability to consistently capture share of digital marketing and advertising budgets, the analyst tells investors.
• LSPD BofA analyst Matt Bullock reinstated coverage of Lightspeed with an Underperform rating and $10 price target. The company has pivoted to higher-quality growth markets, such as North American retail and European hospitality, and while the firm views the shift as "directionally positive," reported results remain constrained by ongoing headwinds in the non-core portfolio and expects Lightspeed shares to remain range-bound in the near term.

• REGN Canaccord analyst John Newman lowered the firm's price target on Regeneron to $875 from $1,057 and keeps a Buy rating on the shares. The firm updated its model following its Phase 3 study of fianlimab+cemiplimab vs pembrolizumab failed to hit statistical significance on the primary endpoint of progression-free survival (PFS), a surprising and disappointing event.

• HIVE Cantor Fitzgerald analyst Brett Knoblauch raised the firm's price target on Hive Digital to $4.60 from $3 and keeps an Overweight rating on the shares. HIVE Digital Technologies announced an AI data center investment in the Greater Toronto Area targeting 320 MW of utility capacity, marking a major expansion into AI infrastructure with a planned 2H27 online date and an estimated $3.5B build cost, significantly improving its visibility into future compute supply and potentially enhancing its ability to secure large cloud tenancy agreements that could help finance the project, the analyst tells investors in a research note.
• AMRC Cantor Fitzgerald analyst Manish Somaiya raised the firm's price target on Ameresco to $45 from $41 and keeps an Overweight rating on the shares. Ameresco is seeing only modest top-line changes following the Neogenyx joint venture closing, but reported EPS and EBITDA revisions are driven primarily by accounting and minority-interest effects rather than any deterioration in the core business, with management reiterating that the underlying operating outlook remains intact despite a slightly mixed FY26-FY27 earnings translation, the analyst tells investors in a research note.
• PRIM Cantor Fitzgerald raised the firm's price target on Primoris to $124 from $113 and keeps a Neutral rating on the shares. Primoris management clarified that margin and earnings pressure from renewables projects should be temporary and back-half weighted, with most challenged projects reaching mechanical and substantial completion between mid-2026 and year-end, implying continued drag in Q2, partial recovery in Q3, and a cleaner operating exit rate by Q4 as project-related headwinds roll off, the analyst tells investors in a research note.
• HOMB Cantor Fitzgerald analyst Dave Rochester lowered the firm's price target on Home BancShares to $30 from $31 and keeps a Neutral rating on the shares.

• AMD Evercore ISI raised the firm's price target on AMD to $579 from $358 and keeps an Outperform rating on the shares. After a round of Q1 AI channel checks, the firm said the main themes it heard included that AI workloads are shifting from a training-led regime toward an inference-led regime by end of 2026 and that a shift is increasing focus on cost-per-token, ROI and TCO, which is accelerating hyperscaler interest in homegrown ASICs and alternative accelerators.
• AVGO Evercore ISI analyst Mark Lipacis raised the firm's price target on Broadcom to $582 from $490 and keeps an Outperform rating on the shares. After a round of Q1 AI channel checks, the firm said the main themes it heard included that AI workloads are shifting from a training-led regime toward an inference-led regime by end of 2026 and that a shift is increasing focus on cost-per-token, ROI and TCO, which is accelerating hyperscaler interest in homegrown ASICs and alternative accelerators.
• MRVL Evercore ISI raised the firm's price target on Marvell to $155 from $133 and keeps an Outperform rating on the shares. After a round of Q1 AI channel checks, the firm said the main themes it heard included that AI workloads are shifting from a training-led regime toward an inference-led regime by end of 2026 and that a shift is increasing focus on cost-per-token, ROI and TCO, which is accelerating hyperscaler interest in homegrown ASICs and alternative accelerators.
• GFS Evercore ISI raised the firm's price target on GlobalFoundries to $85 from $58 and keeps an Outperform rating on the shares. After a round of Q1 AI channel checks, the firm said the main themes it heard included that AI workloads are shifting from a training-led regime toward an inference-led regime by end of 2026 and that a shift is increasing focus on cost-per-token, ROI and TCO, which is accelerating hyperscaler interest in homegrown ASICs and alternative accelerators.
• MTSI Evercore ISI analyst Mark Lipacis raised the firm's price target on Macom to $427 from $275 and keeps an Outperform rating on the shares. After a round of Q1 AI channel checks, the firm said the main themes it heard included that AI workloads are shifting from a training-led regime toward an inference-led regime by end of 2026 and that a shift is increasing focus on cost-per-token, ROI and TCO, which is accelerating hyperscaler interest in homegrown ASICs and alternative accelerators.

• FCN Goldman Sachs lowered the firm's price target on FTI Consulting to $169 from $194 and keeps a Neutral rating on the shares. The price target reduction reflects the more challenging consulting backdrop, as well as perceived AI risk to certain of their key businesses, the analyst tells investors in a research note.

• NVDA HSBC analyst Frank Lee raised the firm's price target on Nvidia to $325 from $295 and keeps a Buy rating on the shares. The firm expects the company to report a "beat and raise" fiscal Q2 on May 200. Nvidia shares have underperformed peers over the last six months despite having two conference events and two sets of financial results that beat estimates and raised expectations, the analyst tells investors in a research note. The firm believes the company needs to show evidence of diversifying its non-cloud service provider customer base to fuel its AI graphics processing unit momentum.

• ON Mizuho analyst Vijay Rakesh raised the firm's price target on On Semi to $130 from $120 and keeps an Outperform rating on the shares. The firm upped price targets in the semiconductor space after analyzing the impact of AI data centers on the analog and memory markets. Channel checks show analog continues to see tailwinds from AI server ramps while memory continues to see tailwinds across NAND and DRAM from AI server demand, the analyst tells investors in a research note. Mizuho expects supply to remain tight into the first half of 2027 and highlights that a potential Samsung strike is looming.
• STM Mizuho raised the firm's price target on STMicroelectronics to $68 from $56 and keeps an Outperform rating on the shares. The firm upped price targets in the semiconductor space after analyzing the impact of AI data centers on the analog and memory markets. Channel checks show analog continues to see tailwinds from AI server ramps while memory continues to see tailwinds across NAND and DRAM from AI server demand, the analyst tells investors in a research note. Mizuho expects supply to remain tight into the first half of 2027 and highlights that a potential Samsung strike is looming.
• TXN Mizuho raised the firm's price target on Texas Instruments to $300 from $255 and keeps a Neutral rating on the shares. The firm upped price targets in the semiconductor space after analyzing the impact of AI data centers on the analog and memory markets. Channel checks show analog continues to see tailwinds from AI server ramps while memory continues to see tailwinds across NAND and DRAM from AI server demand, the analyst tells investors in a research note. Mizuho expects supply to remain tight into the first half of 2027 and highlights that a potential Samsung strike is looming.

• DRTS Piper Sandler raised the firm's price target on Alpha Tau to $8 from $5 and keeps a Neutral rating on the shares after the company reported Q1 results, including an operating loss of $13.3M, while cash ended at $80M. The past 3-6 months have been fairly eventful for Alpha Tau on the clinical and regulatory fronts, with notable headlines across each of the key indications where the company is allocating resources, the firm notes. Piper highlights the positive early results from the REGAIN feasibility trial in recurrent GBM, enrollment wrapped in the company's ReSTART trial in recurrent cSCC, and the IMPACT trial in pancreatic cancer is expanding enrollment.

• RBC Truist raised the firm's price target on RBC Bearings to $615 from $599 and keeps a Buy rating on the shares after its Q4 earnings beat and above-consensus Q1 guide. The company's margins continue to expand while its backlog reached another high of $2.3B, exceeding the management's $2B FY26 target, the analyst tells investors in a research note.

• PPC UBS initiated coverage of Pilgrim's Pride with a Neutral rating and $30 price target. The shares are down 28% year-to-date, but Pilgrim's "poor earnings momentum" into 2026 will prevent a recovery of the stock in the near term, the analyst tells investors in a research note. The firm says stronger poultry production in 2026 in the U.S. and globally, combined with higher corn prices, will drive "material" margin compression at the company.
• JRVR UBS downgraded James River Group to Neutral from Buy with a price target of $4.75, down from $8. The firm cites the company's higher equity cost of capital amid increased risks for adverse reserve development for the downgrade. Increasing competition in the small to middle market excess and surplus lines market could make James River's growth more challenging, the analyst tells investors in a research note.
• JAZZ UBS analyst Ashwani Verma upgraded Jazz Pharmaceuticals to Buy from Neutral with a price target of $307, up from $188. The firm cites improved confidence in Jazz's base business and Ziihera's commercial potential for the upgrade. UBS sees better than expected execution following the Q1 report and says the "strong" Phase 3 HERIZON gastroesophageal adenocarcinoma data support "rapid" Ziihera uptake. The firm now models for 10% annual revenue and 11% annual earnings growth, which is ahead of consensus. Jazz offers a "double-digit compounder earnings profile," contends UBS.

• TYRA Wolfe Research initiated coverage of Tyra Biosciences with a Peer Perform rating an no price target. Tyra has dabogratinib in development for bladder cancer and achondroplasia, notes the analyst, who sees the drug as likely to "achieve the CR bar for LR IR NMIBC," but is "on the fence" until seeing safety de-risking. The pipeline supports the long-term thesis, though current levels limit near-term upside, the analyst added.

• MIRM Wolfe Research initiated coverage of Mirum Pharmaceuticals with an Outperform rating and $145 price target. The stock has rallied over the past year by more than 100%, notes the analyst, who thinks momentum will likely continue over the next year with a potential Livmarli label expansion. Volixibat for PSC and PBC "could be the biggest growth driver," adds the analyst, who sees about $1.7B peak unadjusted worldwide sales.

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

• 4:00 PM ET                    Net Long term-TIC Flows for March

• Earnings After the Close: AGYS FATN YALA

• Waste Expo 2026, 5/18 in Washington, DC

• 8:55 AM ET                   Johnson/Redbook Weekly Sales
• 10:00 AM ET                 Pending Home Sales M/M for April
• 4:30 PM ET API Weekly Inventory Data

• Earnings After the Close: AUNA CAVA EARN EDUC EGHT JHX KEYS MOVE RRGB TOL XELB ZTO

• Deutsche Bank Global Auto industry Conference, 5/19-5/20, in New York
• JP Morgan Global Technology, Media, and Communications Conference, 5/18-5/20, in Boston, MA
• RBC Capital Global Healthcare Conference 5/19/5/20, in New York
• RBC Capital Canadian Industrials Conference 5/19-5/21, in Toronto
• Truist 27th Annual Truist Securities Financial Services Conference, 5/19-5/20 in New York

• 10:30 AM ET                 Weekly DOE Inventory Data
• 1:00 PM ET US Treasury to sell $13B in 20-year notes

• Earnings After the Close: BORR ELF ENS INTU NDSN NVDA SBLK STEP URBN

• Cantor Oncology Day 5/20, in New York
• Deutsche Bank Global Auto industry Conference, 5/19-5/20, in New York
• JP Morgan Global Technology, Media, and Communications Conference, 5/18-5/20, in Boston, MA
• RBC Capital Global Healthcare Conference 5/19/5/20, in New York
• RBC Capital Canadian Industrials Conference 5/19-5/21, in Toronto
• Truist 27th Annual Truist Securities Financial Services Conference, 5/19-5/20 in New York

• 8:30 AM ET                   Continuing Claims
• 8:30 AM ET                   Housing Starts M/M for April
• 8:30 AM ET                   Building Permits M/M for April
• 8:30 AM ET                   Philly Fed Business Index for May
• 9:45 AM ET S&P Global Manufacturing PMI, May-flash
• 9:45 AM ET S&P Global Services PMI, May-flash
• 9:45 AM ET S&P Global Composite PMI, May-flash
• 10:30 AM ET                 Weekly EIA Natural Gas Inventory Data
• 11:00 AM ET                 Kansas City Fed Manufacturing for May

• Earnings After the Close: BULL CAE CPRT DECK FLO RAMP ROST TTWO WDAY ZM

• RBC Capital Canadian Industrials Conference 5/19-5/21, in Toronto

• 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

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