Early Look

Monday, July 20, 2026

After U.S. stock markets declined last week amid weakness in technology, US futures are looking higher this morning as semis rebound. Last week stocks declined as the S&P 500 ended down -1.55%, the Nasdaq down -2.9%, and the Dow Jones Industrial Average fell - 0.93% as the PHLX chip index (SOX) was down 10% for the week, biggest weekly drop since April 2025. Earnings season truly kicks into gear this week with the spotlight on 2 of the Mag 7 companies Tesla (TSLA) and Alphabet (GOOG) as markets look for fresh insight into AI monetization, autonomous driving, digital advertising, cloud computing, and capital spending trends. Technology will remain at the forefront with results from ServiceNow (NOW), International Business Machines (IBM), Intel (INTC), Texas Instruments (TXN), along with telecom giants AT&T (T), Verizon Communications (VZ), T-Mobile US (TMUS), and Comcast (CMCSA). The financial sector will feature results from American Express (AXP), Blackstone (BX), Charles Schwab (SCHW), while key Industrial, aerospace names include Lockheed Martin (LMT), RTX (RTX), Northrop Grumman (NOC), Honeywell (HON), GE Vernova (GEV), 3M (MMM), Union Pacific (UNP), General Motors (GM), American Airlines (AAL), and Southwest Airlines (LUV). In Asian markets, The Nikkei Index was closed for holiday, the Shanghai Index rebounds 32 points to 3,796, and the Hang Seng Index jumps 58 points to 25,143. In Europe, the German DAX is up 41 points to 24,872, while the FTSE 100 is down -53 points to 10,547. Meanwhile the new US-Iran conflict since the ceasefire ended is now in its ninth day as WTI crude is down slightly at $82.35 (off highs $85.39 per barrel), while Brent crude is up slightly at $88.25 per barrel, down from earlier highs of $91.42

• The Dow Jones Industrial Average fell -406.55 points, or 0.77%, to 52,146.42
• The Nasdaq Composite stumbled -361.70 points, or 1.40%, to 25,520.24
• The Russell 2000 Index declined -12.35 points, or 0.42% to 2,962.22

• Earnings After the Close: AGNC AMC BOKF CALX CCK HBCP MCRI RBB SFBS STLD WASH WRB WTFC ZION

• Keir Starmer officially resigned as U.K. prime minister. In his farewell speech, he said he had rebuilt the Labour Party after its 2019 defeat, led it to a landslide election victory in 2024, and leaves Britain “stronger and fairer” than when he took over.
• The average US gas price officially rises back above $4.00 per gallon as the Iran War returns and the “Memorandum of Understanding” collapses.

• GameStop (GME) now owns 43.4 million outstanding shares of eBay (EBAY), or 9.8% of the e-commerce firm it offered to buy for $56 billion in May, according to an SEC filing.
• Jersey Mike's (JMKE) announces launch of Initial Public Offering (IPO), currently expected to be between $21.00 and $25.00 per share. In addition, the Selling Stockholders are expected to grant the underwriters a 30-day option to purchase up to an additional 6,521,739 shares of the Company's Class A common stock to cover over-allotments at the IPO price, less underwriting discounts and commissions.
• Nomad Foods (NOMD) says it expects Q2 2026 reported and organic revenue to decline by 2.5-3.5%; reiterates full year organic revenue, adj EBITDA, and adj free cash flow conversion guidance.
• Yeti Holdings (YETI) was upgraded to Buy from Neutral at Goldman Sachs citing a more durable growth outlook and improving revenue visibility; said retailer feedback remained constructive during Q2, with several accounts reporting inventory constraints and planned restocking heading into Q3.
• Yum Brands (YUM): The U.S. FDA said on Sunday that laboratory experts re-checked lettuce sample results from Taylor Farms in an investigation into an outbreak of the cyclospora parasite and concluded the finding should be considered a false positive. As of Sunday, there were no confirmed positive sample results for cyclospora.

• Boeing (BA): A senior Federal Aviation Administration (FAA) official Chris Rocheleau told Reuters that the agency expects to certify the Boeing MAX 7 and larger 10 soon, after an intensive review of the variants of the best-selling plane. "I think the -7 is literally around the corner, and -10 right behind it." He also said he expects the Boeing 777X to be certified after the two MAX planes.
• BP (BP) said it had agreed to sell its Austrian mobility, convenience and electric vehicle (EV) charging businesses to Volenergy AG under confidential terms. The agreement is expected to complete at the end of 2026.

• Brookfield (BAM) and CPP investments to acquire LXP Industrial Trust (LXP) in $5.2B all-cash transaction where LXP shareholders to receive $61.20 per share in cash; shares to be delisted from NYSE and company to become privately held upon completion and to suspend common share dividends until closing or termination of agreement.

• Allegro MicroSystems (ALGM) downgraded to Equal Weight from Overweight, Penguin Solutions (PENG) downgraded to Underweight from Equal Weight while Lumentum (LITE) upgraded to Overweight from Equal Weight as Barclays as part of a ratings change outlook in the semiconductor and capital equipment space as part of a Q2 earnings preview.
• Global shipments of light detection and ranging (LiDAR) technology are expected to surge to 40 million units in 2030, compared with 5 million in 2025, UOB analyst said in a note. Lidar, which is essential for advanced driver-assistance systems, autonomous driving and robotics, is dominated by China with 90% of the market share, Dow Jones (watch shares of LiDAR companies AEVA, OUST, AMPX, OUST).
• HubSpot (HUBS) downgraded to Equal Weight from Overweight at Wells Fargo and cut tgt to $225 from $300 saying the company is undergoing several strategic initiatives, including changes in AI pricing and product reorientation for AI that all point to a broader AI pivot.
• Hut 8 (HUT) signed a 15-year, USD 9.8 billion triple-net lease for 352 MW of IT capacity at its Beacon Point AI data center campus; the deal doubles the existing high-investment-grade tenant’s contracted capacity at Beacon Point to 704 MW; campus base-term contract value rises to $19.6B; total contracted IT capacity across Hut 8’s AI data center portfolio increases to 949 MW; base-term contract value totals $26.6B.
• Samsung (SSNLF) has cut roles at its U.S. display, phone, and consumer electronics operations at its New Jersey and Texas offices, Reuters reported citing a documents and two people familiar with the matter. 739 roles were affected in Englewood Cliffs, New Jersey and additional 100 workers were let go at its Plano, Texas office.

Mid-Morning Look

Monday, July 20, 2026

U.S. stocks start the new trading week with an upswing, looking to bounce back after last weeks losses that saw the S&P 500 fall -1.55%, the Nasdaq -2.9%, and the Dow Jones Industrial Average -0.93% as the PHLX chip index (SOX) was down 10% for the week, biggest weekly drop since April 2025. This morning, money rotating back into semis and data centers as the PHLX Semiconductor index (SOX) rises 3% back above 12,000 as memory names leading early SNDK, MU, SKHY as well as Ai plays AMD, AVGO, MRVL, NVDA (but have since pared gains). Data center names rising after tumbling recently with IREN and HUT up on lease deal news/revs. Note the global semiconductor sector (SOX) officially entered a bear market last week, with the Philadelphia Semiconductor Index (SOX) cratering more than 20% from its all-time highs. Overall, a quiet start to the week for the economic calendar, with Japanese markets closed in observance of Marine Day and both the ECB and Federal Reserve in their pre-meeting blackout periods, but attention turns to a busy week of earnings.

In other news today ahead of a busy week of earnings (highlighted by TSLA, GOOGL earnings), Brent crude briefly hit a nearly six-week high before easing on Iran-U.S. negotiation comments. The latest headline being Yemen's Iran-aligned Houthis declared a naval blockade against Saudi Arabia effective immediately, their military spokesperson said in a televised speech. The militant group announced, "a maritime embargo against the criminal Saudi enemy, based on the equation of 'an eye for an eye' effective immediately upon the issuance of this statement." Iran's Revolutionary Guards said on Monday they had struck U.S. military assets across the Middle East after another night of U.S. bombardment of Iranian cities, part of a cycle of attacks that has all but wrecked an interim ceasefire agreement.

• Aerospace sector: AER is in discussions to buy BA 787 Dreamliner aircraft, with the leasing company considering as many as 15 of the 787 widebodies, Bloomberg reported. Senior FAA official Chris Rocheleau told Reuters that the agency expects to certify the Boeing MAX 7 and larger 10 soon, after an intensive review of the variants of the best-selling plane. RTX’s Pratt & Whitney scored a fat order to power 33 firm (plus 30 option) Airbus A320neo jets for British Airways. 12-year service deal included.
• Oil sector: energy stocks paced last week’s gains for the S&P 500 amid a 16% spike in WTI and brent crude, but shares of energy companies fall to start the week on reports Iran's foreign ministry said negotiations with the United States could be pursued, based on national interests. MGY said it agreed to buy WildFire Energy for about $4.06 billion in a deal that would increase its production by roughly 53,000 barrels of oil equivalent per day; transaction would add more than 1.25 million net acres and upside development opportunities to the company's portfolio. BP said it had agreed to sell its Austrian mobility, convenience and electric vehicle (EV) charging businesses to Volenergy AG under confidential terms; the agreement is expected to complete at the end of 2026.
• Restaurant sector: DPZ posted Q2 EPS $4.07 that misses consensus $4.17 while revs rose 4.3% y/y to $1.19B vs. est. $1.18B; Q2 U.S. same store sales grew 0.1% short of analysts' estimates for a 0.62% rise, and international same store sales declined (-0.1%) compared with estimates of a rise of 0.5%; Q2 net income rises 3.6% y/y to $135.8M. Jersey Mike's (JMKE) announces launch of IPO, currently expected to be between $21.00 and $25.00 per share. For YUM, the FDA said that lab experts re-checked lettuce sample results from Taylor Farms in an investigation into an outbreak of the cyclospora parasite and concluded the finding should be considered a false positive.

• AMD +3%; after announced an expanded strategic partnership spanning AMD GPUs, CPUs, networking and software on MSFT Azure. At the center of this expansion, Microsoft will deploy the AMD Helios Rackscale Solution, to power frontier model AI inference for Microsoft, its AI customers and support Azure AI services.
• DPZ +3%; after mixed results; posted Q2 EPS $4.07 that misses consensus $4.17 while revs rose 4.3% y/y to $1.19B vs. est. $1.18B; Q2 U.S. same store sales grew 0.1% short of analysts' estimates for a 0.62% rise, and international same store sales declined (-0.1%) compared with estimates of a rise of 0.5%.
• GPN +3%; was upgraded to Overweight at Morgan Stanley saying they think the setup has become increasingly asymmetric to the upside as checks on both Genius and Worldpay are turning more constructive among their respective SMB and enterprise customers.
• HUT +13%; signed a 15-year, USD 9.8 billion triple-net lease for 352 MW of IT capacity at its Beacon Point AI data center campus; the deal doubles the existing high-investment-grade tenant’s contracted capacity at Beacon Point to 704 MW; campus base-term contract value rises to $19.6B; total contracted IT capacity across Hut 8’s AI data center portfolio increases to 949 MW; base-term contract value totals $26.6B.
• IREN +15%; announced that it has raised its year-end AI Cloud annualized run-rate revenue target from $3.7B to more than $4B, of which approximately 85% is now under contract following new multi-year cloud services contracts with leading AI developers representing $2.8bn in total contract value.
• LXP +3%; as BAM and CPP investments to acquire LXP in $5.2B all-cash transaction where LXP shareholders to receive $61.20 per share in cash; shares to be delisted from NYSE and company to become privately held upon completion and to suspend common share dividends until closing or termination of agreement

• NFLX -3%; adding to last week declines following softer Q3 guidance for eps and revs.
• ORCL -3%; as semiconductors rebound (SOX) after falling about -10% last week, the software sector (IGV) seeing weakness/rotation out of shares (MNDY, NOW, TEAM, SAP, WDAY).
• RYAAY -3%; as posted Q1 after-tax profit of EU538M, missing the EU579M analyst consensus, as the figure fell 34% year-over-year on a 6% decline in average fares and a doubling of unhedged jet fuel costs to $150 per barrel, with Q2 pricing trending modestly lower year-on-year.
• TEM -8%; as agreed to acquire PSNL for about $1.5 billion to bringing its cancer test to the AI-enabled precision medicine firm's oncology portfolio.

Closing Recap

Monday, July 20, 2026

U.S. stocks erased morning gains as a bounce in oil prices and a spike in Treasury yields amid inflation concerns overshadowed an early recovery in semiconductor stocks (SOX) as Wall Street braces for the first big week of earnings results, including two of the Mag 7 tech leaders GOOGL and TSLA mid-week, along with several notable large caps. Economic data calendar is very quiet this week ahead of FOMC meeting (7/27-7/28) and ECB policy meeting (this week), as both are in blackout periods. Energy (XLE) was the big winner today in the S&P 500 with modest gains in tech (XLK) with the defensive sectors Healthcare, Utes, REITs and Staples giving up recent gains. July has been painful for AI and momentum investors, with the AI infrastructure trade sharply unwinding and sentiment deteriorated around AI capex, China competition and long-term returns. AI infrastructure names are now down roughly 20% from recent highs, with Samsung, ASML and TSM all delivering strong results but struggling to generate positive share-price reactions. Even after the recent 20% drawdown the SOX remains up 64% YTD and 53% since the start of April. From here, hyperscaler earnings are the key test (GOOGL this week) as the market will be focused on whether strong cloud growth, AI revenue momentum and sustained capex commitments can help re-anchor confidence. Stock prices faded throughout the afternoon as Treasury yields moved back near their highest levels of the month as the 10-year yield topped 4.6% and the 2-yr topped 4.22%. Wednesday is the biggest earnings day of the week by market cap, with 30 S&P 500 companies worth a combined $12.55 trillion reporting while Thursday will be the busiest day by volume, with 153 companies scheduled to report overall. The ECB meets on Thursday July 23, and after hiking at the prior meeting, consensus strongly backs a return to steady rates

• Modest moves in precious metals markets as August gold slips -$2.90/oz, or -0.07%, to settle at $4,015.90 and September Silver rises +$0.75/oz, or +1.32%, to settle at $57.07 an ounce. Gold held steady as investors assessed developments in the escalating U.S.-Iran conflict, which lifted energy prices overnight before falling, and clouded the outlook for U.S. interest rates. Treasury yields also jumped on the day. Treasury yields were higher across the curve with the 2-yr thru the 30-yr all higher.

• Specialty Retail: GME now owns 43.4 million outstanding shares of EBAY, or 9.8% of the e-commerce firm it offered to buy for $56 billion in May, according to an SEC filing. YETI was upgraded to Buy from Neutral at Goldman Sachs citing a more durable growth outlook and improving revenue visibility; said retailer feedback remained constructive during Q2, with several accounts reporting inventory constraints and planned restocking heading into Q3.
• Apparel & Footwear Retail: URBN was upgraded to Buy from Neutral at Goldman Sachs and raise tgt to $93 from $76 saying the retailer is executing on the turnaround of its Anthropologie brand, and Urban Outfitters continues to improve following its inflection in FY26, driving a strong profit recovery. Look for additional upside from emerging growth drivers like Free People Movement and Nuuly. ADDYY CEO said World Cup-related sales are tracking above expectations, with the sportswear brand outperforming rivals NKE and Puma across national team kits.
• In Food & Beverage sector: MNST was downgraded from Buy to Hold at Deutsche Bank as the stock's recent outperformance has left valuation increasingly dependent on outcomes that exceed its already constructive expectations; the firm remains highly positive on the business and is raising its price target to $98; NOMD said says it expects Q2 2026 reported and organic revenue to decline by 2.5-3.5%; reiterates full year organic revenue, adj EBITDA, and adj free cash flow conversion guidance.

• Leisure Products; HOG was upgraded to Buy with a $32 tgt at Loop Capital saying its latest conversations with Harley dealers gave them increased confidence in HOG's ability to execute their “Back to Bricks” strategic plan for FY27 and beyond. Dealer feedback on inventory management, new product launches, P&A upside and Flex Financing was overwhelmingly positive, influencing Loop's favorable view on the stock.

• Utility & Power sector: BE shares fell after New Mexico regulators rejected, for a second time, permits for a gas pipeline planned to supply ORCL Project Jupiter data center. The decision could delay the campus, which is expected to use up to 2.5 GW of Bloom Energy’s gas-powered fuel cells. FRVO was upgraded from Hold to Buy at Jefferies saying after a ~40% pull-back from May IPO highs, creating an improved risk-reward skew. Notably, EGS' risk profile has not changed since the firm initiated, just investors' perceptions and comfort levels on execution.

• Brokers & Exchanges sector: SCHW was downgraded from Outperform to Market Perform at BMO Capital saying fundamentals remain strong, but after a roughly 20% rally and outperformance vs SPX and XLF, BMO feels the risk/reward is more balanced. Importantly, there is no evidence that Ai-enabled cash optimization is impacting current results, so notes the downgrade isn't about NT earnings power.

• In Payments sector: GPN was upgraded to Overweight at Morgan Stanley saying they think the setup has become increasingly asymmetric to the upside as checks on both Genius and Worldpay are turning more constructive among their respective SMB and enterprise customers, and investors appear ready to Re-engage with a stock where the Bar is low and a potentially broadening market could bring deep-value processors back into focus and drive a rerating.

• In REITs: BAM and CPP investments to acquire LXP in $5.2B all-cash transaction where LXP shareholders to receive $61.20 per share in cash; shares to be delisted from NYSE and company to become privately held upon completion and to suspend common share dividends until closing or termination of agreement

• HALO announces global collaboration and license agreement with INCY to support the development of subcutaneous formulations of inca033989 using its Enhanze® technology; Halo to receive upfront payment and eligible for milestone payments from Incyte.
• IMMX shares declined after a report by STAT News noted a fugitive former doctor convicted of sexual assault was arrested after allegedly living under an alias as a biotech executive for the company.
• NUVB shares rallied early after saying its experimental brain cancer drug, safusidenib, showed a 52% confirmed response rate in patients with IDH1-mutant glioma; said nearly 80% of patients were alive without their disease worsening three years after starting treatment in a Japanese mid-stage study.
• Medical Research sector: TEM agreed to acquire PSNL for about $1.5 billion to bringing its cancer test to the AI-enabled precision medicine firm's oncology portfolio.

• Aerospace sector: AER is in discussions to buy BA 787 Dreamliner aircraft, with the leasing company considering as many as 15 of the 787 widebodies, Bloomberg reported. Senior FAA official Chris Rocheleau told Reuters that the agency expects to certify the Boeing MAX 7 and larger 10 soon, after an intensive review of the variants of the best-selling plane. RTX’s Pratt & Whitney scored a fat order to power 33 firm (plus 30 option) Airbus A320neo jets for British Airways. 12-year service deal included.
• Defense/drone sector: AVAV awarded a $117.3M contract by the U.S. Army for P550 as contract covers delivery of 82 P550 eVTOL unmanned aircraft systems for the Army's Battalion; ONDS said it secures $6.9M Australian defense order, expanding international demand for counter-UAS solutions. ACHR shares jumped after unveiled a joint-developed Autonomous VTOL platform for commercial and Defense applications.

• Neoclouds/AI Infrastructure: Wolfe Research said it projects NBIS will reach $30B in revenue and $21B in EBITDA by 2030, underpinned by $46B in signed contracts with MSFT and META, with the ramp beginning in Q4 2026 as the Vineland facility comes online and unlocks contracted revenue. Keybanc highlights Infrastructure setup as straight-forward: DLR likely need to continue to beat/raise guide, while the Bar is low for AMT, CCI, SBAC where in-line/maintain is likely good enough. Bloomberg reported BLK is leading a debt sale of at least $12 billion for a massive 1 GW datacenter project in El Paso, Texas. BlackRock will own 80%, META 20% (META will use the capacity).

• Hardware & Components: after hitting all-time highs last week, AAPL shares slipped today; @charliebilello noted on “X”, Apple is now trading at nearly 11x sales, the highest valuation level in company history.
• Global shipments of light detection and ranging (LiDAR) technology are expected to surge to 40 million units in 2030, compared with 5 million in 2025, UOB analyst said in a note. Lidar, which is essential for advanced driver-assistance systems, autonomous driving and robotics, is dominated by China with 90% of the market share, Dow Jones (watch shares of LiDAR companies AEVA, OUST, AMPX, OUST).
• Meda and telecom movers: Bloomberg and Reuters reported Judge orders PSKY to temporarily pause WBD acquisition after 12 state attorneys general challenged the deal. In earnings preview, RBC Capital tweaked its estimates for T, VZ, TMUS, CMCSA, and CHTR to incorporate competitive impacts, and incremental LEO threats to Broadband ARPUs in outer years. With VZ and CMCSA going through a reset year amidst intensified competition and deflationary pressures in Wireless and wireline, RBC sees signs of differentiated offerings and lower subsidies in Wireless that could translate into a more disciplined environment in 2H26.

• Barclay’s out with industry note into Q2 as they upgraded LITE to Overweight, while downgraded ALGM to Equal Weight and PENG to Underweight saying the group is getting a much-needed breather after a 1H for the record books (SOX +97% vs SPX +10%). Fundamentals are only strengthening but valuations are stretching and the focus is moving more towards '28, where there is little visibility and not much companies can say at Q2 earnings. Like in Q1, Semi Cap will again need to raise CY26 numbers and WFE, or those names are likely biased lower as well. Barclays said names where they see upside: AMD, CBRS, CRDO, LITE, NXPI and sees downside ALAB, ALGM, PENG

Street Recommendations

Monday, July 20, 2026

• ENLT Barclays raised the firm's price target on Enlight Renewable to $89 from $83 and keeps an Overweight rating on the shares. The company is positioned for a favorable Q2 update, with safe harbor coverage now encompassing most U.S. projects through 2029, the analyst tells investors in a research note.
• MIDD Barclays lowered the firm's price target on Middleby to $155 from $190 and keeps an Overweight rating on the shares. The firm adjusted targets in the machinery and construction space as part of a Q2 earnings preview. The sector setup is balanced across beats, misses, and guide changes, the analyst tells investors in a research note. Barclays believes the group remains investable as production, awards, pricing, and acquisitions support 2026 outlooks.
• TEX Barclays raised the firm's price target on Terex to $70 from $65 and keeps an Overweight rating on the shares. The firm adjusted targets in the machinery and construction space as part of a Q2 earnings preview. The sector setup is balanced across beats, misses, and guide changes, the analyst tells investors in a research note. Barclays believes the group remains investable as production, awards, pricing, and acquisitions support 2026 outlooks.
• ALGM Barclays analyst Tom O'Malley downgraded Allegro MicroSystems to Equal Weight from Overweight with an unchanged price target of $48. The firm adjusted ratings in the semiconductor and capital equipment space as part of a Q2 earnings preview. Barclays sees "opportunity to re-engage selectively" in compute, interconnect and analog. Auto remains the largest piece of Allegro's business and Street estimates could be too high, the analyst tells investors in a research note. As such, Barclays thinks there are other opportunities at more attractive valuations.
• LITE Barclays analyst Tom O'Malley upgraded Lumentum to Overweight from Equal Weight with an unchanged price target of $1,000. The firm adjusted ratings in the semiconductor and capital equipment space as part of a Q2 earnings preview. Barclays sees "opportunity to re-engage selectively" in compute, interconnect and analog. Lumentum underperformed peers by 40% in the last three months and has seen multiple compression on the thesis that scale-up co-packaged optics is somehow pushed out, the analyst tells investors in a research note. Barclays believes the company's underlying fundamentals remain strong and likes the stock's risk/reward on the recent pullback.

• CMS BMO Capital analyst James Thalacker raised the firm's price target on CMS Energy to $86 from $81 and keeps an Outperform rating on the shares ahead of its Q2 results. Adverse weather and storm-related expenses are negative factors for the quarter, though the gap is more reflective of a challenging year-over-year comparison for the company, the analyst tells investors in a research note. BMO adds however that it remains confident in its full-year outlook with significant rate relief expected in the second half of the year.
• MNST BMO Capital raised the firm's price target on Monster Beverage to $95 from $73 and keeps a Market Perform rating on the shares. The firm notes it is gaining confidence in the durability of Monster's strong top-line growth trajectory following an analysis of the brand and channel composition of recent scanner sales growth, Monster's revolving price gaps vs. category peers, and early signs from key new product rollouts, the analyst tells investors in a research note.
• DUK BMO Capital lowered the firm's price target on Duke Energy to $134 from $138 and keeps an Outperform rating on the shares. The firm notes that an unanticipated comprehensive settlement in a North Carolina rate case is helping to de-risk the stock's investment story, the analyst tells investors in a research note. Longer term, BMO is positive on Duke's improving balance sheet following the announced Piedmont Natural Gas and Florida and Michigan asset sales.
• NEE BMO Capital analyst James Thalacker lowered the firm's price target on NextEra Energy to $95 from $102 but keeps an Outperform rating on the shares ahead of its Q2 results this week. The company's industry-leading profile within the sector warrants a premium valuation given its fundamental and thematic drivers, including one of the world's largest renewable backlogs and favorable recovery of investments through regulatory recovery mechanism, the analyst tells investors in a research note.

• RTO BofA reinstated coverage of Rentokil Initial with a Buy rating and 515 GBp price target. Citing attractive market characteristics, substantial management change and material self-help, the firm sees Rentokil delivering a 2025-28 EPS compound annual growth rate of 12% and 2028 EPS 6% above consensus.
• TRV BofA raised the firm's price target on Travelers to $307 from $283 and keeps an Underperform rating on the shares. The firm's forward forecasts rise with the Q2 beat, but it believes investors are "paying peak-ish multiples for peak-ish earnings power" as the industry likely descends from peak margins with weak growth, the analyst tells investors.

• STIM BTIG initiated coverage of Neuronetics with a Buy rating and $5 price target. The late 2024 acquisition of Greenbrook TMS transformed the company from a pure-play medical device manufacturer into a vertically integrated mental health platform with 93 company-operated treatment centers as the company looks to become a key player in the rapidly evolving field of interventional psychiatry, the analyst tells investors. This positions Neuronetics to benefit from "what could be one of the most significant shifts in mental health treatment in a generation," adds the analyst, who sees a "compelling" risk/reward at current levels.

• PAC Citi upgraded GAP Airports to Buy from Neutral with a price target of MXN 430, down from MXN 460. The firm cites valuation for the upgrade with the stock down 23% from recent highs. GAP's 2027 should benefit from easy compares and a market recovery, the analyst tells investors in a research note.

• ADBE CLSA initiated coverage of Adobe with an Outperform rating and $300 price target. The firm started six names in the software space. Enterprise software has "plentiful moats," making CLSA "constructive that current disdain for the sector will eventually," the analyst tells investors in a research note. The firm believes the sector "must first become leaner," however. It prefers Microsoft and Adobe shares.
• ORCL CLSA analyst Bhavtosh Vajpayee initiated coverage of Oracle with a Hold rating and $145 price target. The firm started six names in the software space. Enterprise software has "plentiful moats," making CLSA "constructive that current disdain for the sector will eventually," the analyst tells investors in a research note. The firm believes the sector "must first become leaner," however. It prefers Microsoft and Adobe shares.
• CRM CLSA initiated coverage of Salesforce with a Hold rating and $165 price target. The firm started six names in the software space. Enterprise software has "plentiful moats," making CLSA "constructive that current disdain for the sector will eventually," the analyst tells investors in a research note. The firm believes the sector "must first become leaner," however. It prefers Microsoft and Adobe shares.
• NOW CLSA initiated coverage of ServiceNow with an Underperform rating and $72 price target. The firm started six names in the software space. Enterprise software has "plentiful moats," making CLSA "constructive that current disdain for the sector will eventually," the analyst tells investors in a research note. The firm believes the sector "must first become leaner," however. It prefers Microsoft and Adobe shares.
• WDAY CLSA analyst Bhavtosh Vajpayee initiated coverage of Workday with an Underperform rating and $92 price target. The firm started six names in the software space. Enterprise software has "plentiful moats," making CLSA "constructive that current disdain for the sector will eventually," the analyst tells investors in a research note. The firm believes the sector "must first become leaner," however. It prefers Microsoft and Adobe shares.
• CRL CLSA analyst Michael Luo downgraded Charles River to Hold from Outperform with an unchanged price target of $219. The firm believes the current share price already reflects a gradual recovery in early-stage research and development demand in the second half of 2026. The analyst cites valuation for the downgrade, seeing a balanced risk/reward at current share levels.

• MNST Deutsche Bank analyst Steve Powers downgraded Monster Beverage to Hold from Buy with a price target of $98, up from $94. The stock's recent outperformance has left Monster's valuation increasingly dependent on outcomes that exceed Deutsche's "already constructive expectations," the analyst tells investors in a research note. The firm remains "highly positive on the business," citing valuation for the downgrade.

• ANTX Guggenheim last night initiated coverage of AN2 Therapeutics with a Buy rating and $9 price target. The firm thinks AN2 hares can experience "significant upside" within the next 18 months if epetraborole proves to be the first oral drug that controls hematocrit in patients with polycythemia vera. Epetraborole has a good tolerability profile, demonstrated over six months in another patient population, the analyst tells investors in a research note.
• CLDX Guggenheim analyst Yatin Suneja raised the firm's price target on Celldex to $100 from $90 and keeps a Buy rating on the shares. Ahead of the pivotal EMBARQ-CSU1/2 topline readout expected in Q4, the firm sees 85% probability of success for barzolvolimab and about $3B in peak global sales, the analyst tells investors.
• TGT Guggenheim raised the firm's price target on Target to $150 from $145 and keeps a Buy rating on the shares. With still-significant remodel and product assortment activity lying ahead this year and next, the path to $9-plus of 2027 EPS is "gaining visibility" and a "credible secular story may warrant a modestly higher EBITDA multiple," the analyst tells investors.

• BX HSBC raised the firm's price target on Blackstone to $135 from $131 and keeps a Hold rating on the shares. The firm says the "significant derating" of the alternative asset management sector year-to-date suggests limited downside risks from here. Until signs emerge that flows have turned a corner, HSBC prefer names less exposed to private wealth, the analyst tells investors in a research note.
• KKR HSBC raised the firm's price target on KKR to $121 from $118 and keeps a Buy rating on the shares. The firm says the "significant derating" of the alternative asset management sector year-to-date suggests limited downside risks from here. Until signs emerge that flows have turned a corner, HSBC prefer names less exposed to private wealth, the analyst tells investors in a research note.

• NPO JPMorgan initiated coverage of EnPro with an Overweight rating and $420 price target, representing 30% upside potential from current levels. Enpro is an industrial technology company specializing in sealing solutions and advanced surface technologies, the analyst tells investors in a research note. JPMorgan says the "strong inflection" at the company's Advanced Surface Technologies is the most important driver behind its Overweight rating. It sees share upside from AST's growth trajectory.
• TFC JPMorgan analyst Vivek Juneja downgraded Truist Financial to Underweight from Neutral with a price target of $53, down from $53.50. The firm views the bank's Q2 report as mixed, saying Truist lowered its net interest income outlook for the second quarter in a row due to continued deposit and loan spread pressures and slow loan growth. JPMorgan cites Truist's continued pressure on net interest income for the downgrade. This will likely continue with the exit of some loans and continued deposit pricing pressure in the industry, the analyst tells investors in a research note.
• MOG JPMorgan initiated coverage of Moog with an Overweight rating and $520 price target, implying 35% upside potential. Moog is a designer and systems integrator of precision motion and fluid control solutions, the analyst tells investors in a research note. The firm views the company as a "resilient compounder" that is positioned for up to low-double-digit revenue growth through fiscal 2028.
• MCO JPMorgan raised the firm's price target on Moody's to $600 from $530 and keeps an Overweight rating on the shares ahead of the Q2 report. Debt issuance data across key end markets for the credit rating agencies point to accelerating issuance momentum, particularly in corporate debt, throughout Q2, the analyst tells investors in a research note. JPMorgan upped estimates in the credit ratings space citing "robust" Q2 activity.
• MSCI JPMorgan raised the firm's price target on MSCI to $742 from $700 and keeps an Overweight rating on the shares ahead of the Q2 report. Debt issuance data across key end markets for the credit rating agencies point to accelerating issuance momentum, particularly in corporate debt, throughout Q2, the analyst tells investors in a research note. JPMorgan upped estimates in the credit ratings space citing "robust" Q2 activity.
• SPGI JPMorgan analyst Andrew Steinerman raised the firm's price target on S&P Global to $555 from $535 and keeps an Overweight rating on the shares. ahead of the Q2 report. Debt issuance data across key end markets for the credit rating agencies point to accelerating issuance momentum, particularly in corporate debt, throughout Q2, the analyst tells investors in a research note. JPMorgan upped estimates in the credit ratings space citing "robust" Q2 activity.

• SHEL Mizuho initiated coverage of Shell with a Neutral rating and $98 price target. Shell trades at a discount to peers, due to enhanced margins from its marketing and supply organization that complement hard assets in both upstream and downstream, the analyst tells investors in a research note. The firm sees the company's lower reserve life, challenged margins in refining and chemicals, and potential litigation risk as headwinds for Shell. It views the stock's risk/reward relative to peers as balanced.
• TTE Mizuho analyst Nitin Kumar initiated coverage of TotalEnergies with an Outperform rating and $103 price target. The company offers a "differentiated, dual-engine growth strategy" that balances investments in both traditional hydrocarbons and low carbons, the analyst tells investors in a research note. The firm says TotalEnergies' power segment is expected to be free cash flow positive and begin contributing to the base dividend by 2027. It notes the stock trades at a discount to peers.
• AMLX Mizuho analyst Graig Suvannavejh raised the firm's price target on Amylyx to $24 from $21 and keeps an Outperform rating on the shares. The firm expects the company to report Phase 3 LUCIDITY study data for avexitide in postbariatric hypoglycemia this quarter. Following recent channel checks, Mizuho increased its probability of success to 70% from 60%. The analyst sees further share upside ahead of the data.
• PWR Mizuho raised the firm's price target on Quanta Services to $645 from $593 and keeps a Neutral rating on the shares. The firm updated the company's model to reflect revenue seasonality in line with management's prior comments. It believes Quanta will beat Q2 estimates due to seasonality and Dodge's non-building construction starts. The company will likely increased its fiscal 2026 guidance due to continued strength in its end markets, the analyst tells investors in a research note.

• DDOG Oppenheimer raised the firm's price target on Datadog to $300 from $220 and keeps an Outperform rating on the shares. The firm expects strong results from Datadog with upside to consensus revenue estimates of roughly 2%-4%. Oppenheimer's checks suggest consumption running ahead of expectations including strong AI tailwinds, though competition in logs is ticking up modestly. The firm sees new AI-native customers and newer products supporting the upside, while the recent acquisition of Adaptive ML expands the company's AI value proposition. This keeps Oppenheimer bullish longer-term.

• LYV UBS analyst Batya Levi raised the firm's price target on Live Nation to $208 from $181 and keeps a Buy rating on the shares. Live Nation is expected to deliver strong growth driven by resilient demand for live events, venue expansion, and double-digit gains in concerts and sponsorship, while ticketing profit growth remains tempered by investments and regulatory costs, the analyst tells investors in a research note.

• ACN Wells Fargo lowered the firm's price target on Accenture to $194 from $200 and keeps an Overweight rating on the shares. Following the company's recent $5B debt raise and press release on June 23 suggesting $2B in incremental share repurchases will be completed in Q4, the firm modestly adjusts its 2026/2027 adjusted EPS estimates to $13.86/$14.77 from $13.82/$14.73.
• CHKP Wells Fargo analyst Richard Poland raised the firm's price target on Check Point to $140 from $120 and keeps an Equal Weight rating on the shares. Supplementing 14 checks in the past month, the firm says its Q2 on-cycle reseller survey results support improving overall cyber demand driven by AI-related urgency.
• FTNT Wells Fargo raised the firm's price target on Fortinet to $120 from $70 and keeps an Underweight rating on the shares. Supplementing 14 checks in the past month, the firm says its Q2 on-cycle reseller survey results support improving overall cyber demand driven by AI-related urgency.
• OKTA Wells Fargo raised the firm's price target on Okta to $150 from $100 and keeps an Equal Weight rating on the shares. Supplementing 14 checks in the past month, the firm says its Q2 on-cycle reseller survey results support improving overall cyber demand driven by AI-related urgency.
• VRNS Wells Fargo raised the firm's price target on Varonis to $50 from $35 and keeps an Overweight rating on the shares. Supplementing 14 checks in the past month, the firm says its Q2 on-cycle reseller survey results support improving overall cyber
• DKNG Wells Fargo lowered the firm's price target on DraftKings to $29 from $32 and keeps an Overweight rating on the shares. The firm estimates handle growth through June to date is 10% and GGR growth about flat using reported state data. Wells believes June's strong Handle growth was offset by weak outcomes and higher promo.
• GENI Wells Fargo lowered the firm's price target on Genius Sports to $8 from $9 and keeps an Overweight rating on the shares. The firm estimates handle growth through June to date is 10% and GGR growth about flat using reported state data. Wells believes June's strong Handle growth was offset by weak outcomes and higher promo.
• RSI Wells Fargo analyst Zachary Silverberg raised the firm's price target on Rush Street Interactive to $35 from $29 and keeps an Overweight rating on the shares. The firm estimates handle growth through June to date is 10% and GGR growth about flat using reported state data. Wells believes June's strong Handle growth was offset by weak outcomes and higher promo.

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: AGNC AMC BOKF CALX CCK HBCP MCRI RBB SFBS STLD WASH WRB WTFC ZION

• 8:55 AM ET                   Johnson/Redbook Weekly Sales
• 4:30 PM ET API Weekly Inventory Data

• Earnings After the Close: AIR ALK BWB CB COF EQT EWBC FFBC HAFC HWC IBKR KREF MCB NLY NP NPB ORRF OZK PEGA RRC TFIN TRST WAL WBS WSBC

• 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: AVB BANR BDN CASH CATY CCI CCS CSX CYH EFSC EGBN EGP ELS EPRT EQR FAF FR FRME FSBC FULT GGG GL GOOGL GSHD GTY HBNC IBM KALU KMI KNX LBRT LOV LUV MEDP MMLP MOH NOW NTST OBK OII PKG PNFP QCRH QS RELL RGP RJF RLI RNR ROL RS SEIC SLG SON STC TCBI TSLA TXN URI WCN WEX

• 8:30 AM ET                   Continuing Claims
• 8:30 AM ET                   National Activity index for June
• 10:30 AM ET                 Weekly EIA Natural Gas Inventory Data
• 11:00 AM ET                 Kansas City Fed Manufacturing for July

• Earnings After the Close: ABCB AMTB APPF ASB ATRC BFST BY BYD COLB CUBI DECK DLR EBC ENVA EW FIBK FISI FRST GBCI HIG INTC JAKK KN KNSL MRTN MXL NEM ORC OVV PECO PINE REXR RNG SAM SAP SCHL SIGI SKYW SLM SSB SSNC USCB UVE VRSN WKC WSFS

• 9:45 AM ET S&P Global Services PMI, June-flash
• 9:45 AM ET S&P Global Composite PMI, June-flash
• 10:00 AM ET                 New Home Sales M/M for June
• 1:00 PM ET                    Baker Hughes Weekly rig count data

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