Early Look

Wednesday, May 27, 2026

U.S. futures are pointing to more gains, on track for a 5^th straight day in a row and the S&P 500 looking to make it an impressive 9^th week in a row of gains as the strength in semiconductor chips (SOX) pushes this market further and higher daily. On Tuesday, Wall Street returned to another day, another record for the S&P 500 (SPX), Nasdaq Composite, Nasdaq 100 (tops 30K), Russell 2000 and the Semiconductor Index (SOX) as Bulls are large and in charge on Wall Street as the ongoing AI boom propels markets to record highs. The S&P 500 posted its 19th record closing high of the year, while the Nasdaq Composite scored its 15th record finish, as AI-fueled optimism helped offset concerns over Middle East peace talks and recent U.S. strikes on Iran. Micron (MU) led the charge Tuesday as the memory chip maker, which has been an S&P market leader the last 2 years, jumped another 19% and crossed $1 trillion in market cap, dragging the entire memory chip group higher while overnight, South Korean memory maker SK Hynix became the next $1 trillion club member. The tech sector (XLK) jumped 2.6% and is now up 28.6% YTD and is leading futures overnight again. Reuters noted in the 39 trading days since the SOX index’s March 30 close, it has surged 80.3%. That marks its second-largest rolling 39-day gain based on LSEG data going back to mid-1994. The record gain, 80.978%, was reached on March 3, 2000, just five trading days before the index’s Y2K-era closing peak.

In Asian markets, The Nikkei Index was little changed, edging higher 3 points to 64,999, the Shanghai Index tumbled -51 points to 4,093, and the Hang Seng Index declined -271 points to 25,328. In Europe, the German DAX is up 188 points to 25,372, while the FTSE 100 is up 26 points to 10,517. Sk Hynix Inc. has surged past a $1 trillion market valuation after its shares soared more than 900%in the past year, reflecting investor confidence in its position as the leading supplier of advanced memory chips powering artificial Intelligence. The Kospi index jumped 5% helped by SK Hynix. While semiconductor chips continue to lead tech, software continues to be used as a source of funds, as shares of Zscaler (ZS) tumble over -23% after mixed guidance last night. Treasury yields extend decline, with the 10-yr down 2 bps to 4.46% after sliding 8 bps yesterday and down from 4.687% last week, its highest level since January 2025. The uncertainty around the Middle East ceasefire/negotiation continues after US forces conducted self-defense strikes against Iranian missile launch sites and small boats attempting to lay mines around the Strait of Hormuz this week, but not weighing on market sentiment.

• The Dow Jones Industrial Average fell -117.16 points, or 0.23%, to 50,462.54
• The Nasdaq Composite gained 312.21 points, or 1.19%, to 26,656.18
• The Russell 2000 Index advanced 51.32 points, or 1.79% to 2,920.54

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

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

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

• Verra Mobility (VRRM) receives termination of agreement notice from Avis Budget Group (CAR) saying they are reviewing contractual rights and obligations after termination notice; the co said the termination is expected to reduce 2026 commercial services revenue by $135M-$145M; cuts FY26 adjusted EPS view to $1.19-$1.25 from $1.32-$1.38 and lowers FY26 revenue view to $985M-$995M from $1.020B-$1.030B; cuts FY adj Ebitda as well.
• Winnebago (WGO) downgraded to Neutral from Buy at Citigroup and cut tgt to $30 from $46 saying recent recreational vehicle dealer checks indicate a persistently challenged retail environment with no meaningful near-term recovery expected.

• Firefly Aerospace Inc (FLY) offers 4M shares; selling securityholders offer 8M shares. The announcement comes after shares jumped Tuesday after NASA said Firefly Aerospace will deliver the first drones to the lunar surface, while Blue Origin was chosen to transport the first lunar terrain vehicle.
• Intuitive Machines (LUNR) shares moved lower Tuesday after NASA announced new lunar exploration contract awards that did not include the company.
• Modine Manufacturing (MOD) Q4 adj EPS $1.71 tops consensus $1.55; Q4 revs rose 47% y/y to $954.4M vs. est. $920.7M; Q4 adj EBITDA $146.1M vs. EST $144M; said Q4 sales growth was driven primarily by strong demand from data center customers in the Climate Solutions segment; sees FY27 adjusted EBITDA $650M-$680M.
• Solv Energy (MWH) announces 14M share offering of Class A common stock.
• Westlake Chemical (WLK) downgraded to Neutral from buy at Citigroup in while maintain positive view on PE producers DOW, LYB; updating estimates across PE & PVC producers given price normalization from peak and evidence of some supply normalization and demand destruction. Citi generally tempers 2H26 and 2027 expectations on normalizing PE & PVC prices from the Q2 peak.

• Scotiabank (BNS) Q2 adjusted EPS C$2.02 vs. C$1.52 last year; Q2 revenue C$9.84B vs. C$9.08B last year; raised quarterly dividend by 4%; provision for credit losses fell yr/yr, mainly due to a lower provision on performing loans, though impaired loan provisions increased; maintains 14%+ ROE target for fiscal 2027.

• Insulet (PODD) announced a voluntary Medical Device Correction for specific lots of Omnipod 5, Omnipod DASH, and Omnipod Insulin Management System Pods due to a manufacturing issue, identified through ongoing product monitoring, that could result in insulin under-delivery. This action is separate from the voluntary Medical Device Correction issued on March 12, 2026, affecting certain Omnipod 5 Pods in the U.S.

• Digital Turbine (APPS) Q4 adj EPS $0.16 tops consensus $0.09 on revs $142.5M vs. est. $133.2M; Q4 adj net income $19.7M vs. est. $10.11M; Q4 adj Ebitda $31.4M vs. est. $25.14M; says results driven by improved use of first-party data and AI tools; sees FY27 revenue $630M-$650M vs. $565.3M in FY26.
• Ooma (OOMA) Q1 EPS $0.35 vs. est. $0.32; Q1 revs rose 25% y/y to $81.1M vs. consensus $79.8M; raises FY27 EPS view to $1.29-$1.34 from $1.26-$1.31, above consensus $1.29; raises FY27 revenue view to $326M-$328.5M from $326M-$328.5M, vs. consensus $322.8M; said expect to continue to see accelerating market demand for AirDial & to derive further contributions from acquisitions of fluent stream &phone.com.
• SanDisk (SNDK) upgraded to Overweight from Equal Weight at Barclays and raise tgt to $2,300 from $1,200 saying it sees Memory and Storage as the most attractive vertical below accelerators and also believes that continued upside to pricing with supply-demand imbalance will persist through 2027.
• Semtech (SMTC) Q1 adj EPS $0.51 vs. consensus $0.45; Q1 sales rose 16% y/y to $291M vs. consensus $283.45M citing expanding design wins in data center and LoRa businesses as growth drivers; guides Q2 EPS $0.59-$0.63 above consensus $0.51 and revs $323M-$333M, vs. consensus $300.7M; sees Q2 adj EBITDA $76.9M-$81.5M.
• Zscaler (ZS) Q3 adj EPS $1.08 vs. consensus $1.01 and revs $850.48M vs. est. $835.4M; Q3 adj net income $177.9M vs. est. $168.2M; Q3 ARR grew 25%, or 21%, excluding the contribution from the Red Canary acquisition, and non-GAAP operating margin reached an all-time high of 23%; guides Q4 adj EPS $1.08-$1.09 vs. est. $1.03 while sees Q4 revenue $875M-$878M, consensus $878.66M; raises year EPS and rev outlook.

Mid-Morning Look

Wednesday, May 27, 2026

U.S. stocks opened at fresh record highs for the S&P 500, Nasdaq Comp, Russell 2000 and Philly semi index (SOX), though gains early were more subdued following the massive surge the last 4 days, as ground hogs day continues to play over and over again for Semis, Space & Solar Stocks – along with data center/AI infrastructure doing all the heavy lifting for US markets in recent weeks! Oil prices fall over -4% giving stocks a bounce early after Iranian state media announces initial details of the "Memorandum of Understanding" for the US-Iran peace deal. Precious metals tumble with gold falling to two-month low and silver prices slumping as war-driven inflation fuels rate-hike bets, ahead of key monthly PCE inflation data tomorrow morning. Bitcoin hits monthly lows and the dollar Is mixed. Early strength in Consumer Discretionary, Healthcare, Consumer Staples and Communications while Energy tumbles and tech gives up early gains. Several conferences ongoing on Wall Street in the financials and healthcare sector moving some names early. Can the S&P 500 (SPX) make it a 9^th straight week of gains on this holiday shortened week?

The details of the Iran MOU included: 1. US Military forces will withdraw from the vicinity of Iran, 2. The US Navy will lift its blockade of the Strait of Hormuz, 3. Iran has committed to restoring the number of commercial transit ships through the Strait of Hormuz to pre-war levels within 1 month, 4. Iranian state media says military vessels are not included in this draft agreement, 5. The management and routing of ship traffic through the Strait of Hormuz will be handled by Iran in cooperation with Oman, 6. If a final deal is reached within 60 days, this agreement will be approved in the form of a binding UN Security Council resolution.

• In Chemicals: WLK was downgraded to Neutral from buy at Citigroup citing further housing recovery delay, less favorable PVC fundamentals, and less compelling operating leverage; while maintain positive view on PE producers DOW, LYB; updating estimates across PE & PVC producers given price normalization from peak and evidence of some supply normalization and demand destruction. Citi generally tempers 2H26 and 2027 expectations on normalizing PE & PVC prices from the Q2 peak. FUL was upgraded to Neutral from Underweight at JP Morgan citing valuation for the upgrade. UBS upgraded shares of RPM to Buy from Neutral as they have a more constructive view of RPM's pricing power in the current inflationary cycle and upgrade ECL to Buy from Neutral (tgt to $325 from $293) as expects the shares to re-rate higher as investors see Ecolab's pricing accelerate to recover raw material costs in the second half of 2026.
• Metals & Mining: big declines in silver and gold prices, weighing in turn shares of miners AEM, B, CDE, NEM, PAAS, HL and others amid heavy selling pressure on rising interest rate fears given the increase in inflationary data points 9ahead of the PCE inflation reading tomorrow. The macro backdrop remains pretty challenging for gold and positioning has been pretty short. While yields have come off, they are still comfortably above pre-war levels, physical demand looks soft: India is actively curbing imports.
• Transports: FDX was upgraded to Overweight from Neutral at JP Morgan and raise tgt to $460, taking a more positive stance on the shares into the company's fiscal Q4 report on June 23 saying risk/reward is attractive heading into the separation of the freight business on June 1. GXO upgraded to Overweight at Barclays saying its leadership is likely to target a more profitable future leveraging automation and Robotics to achieve best-in-class margins while focusing growth ambitions in the North American market. In shipping, DSX increases all-cash offer to acquire GNK to $24.80 per share

• APPS +42%; Q4 adj EPS $0.16 tops consensus $0.09 on revs $142.5M vs. est. $133.2M; Q4 adj net Income $19.7M vs. est. $10.11M; Q4 adj EBITDA $31.4M vs. est. $25.14M (was upgraded to Buy at Bank America saying execution has become more consistent and FY27 visibility has improved).
• BBWI +117; Q1 sales $1.38B topped est. $1.36B on better adj EPS of $0.32 vs. est. $0.29 while maintained full-year forecasts for net sales and adj profit and said Eva Boratto will step down from her role as CFO, with Tom Javitch set to take over as interim CFO, effective June 12
• DY +24%; surges as Q1 adj EPS $4.42 crushed consensus $2.72 and revs rose 56% y/y to $1.96B above consensus $1.67B saying strong demand for fiber infrastructure and data center builds drove revenue growth; guidance also better for EPS and revs $1.94B-$2.01B vs. consensus $1.77B and raised its year outlook.
• IREN +4%; announced a hardware partnership with DELL for its Texas data centers. The deal accelerates IREN's GPU deployment timeline and increases the company's annualized run-rate revenue forecast to $4.4 billion.  IREN agreed to buy NVDA’s air-cooled Blackwell systems from Dell in a deal worth $1.6B.
• LUNR +8%; amid a rebound in shares after sliding Tuesday after NASA announced new lunar exploration contract awards that did not include the company; overall space companies strong today with shares of PL, RKLB, VOYG, YSS among movers.

• BSX -10%; after guidance at Bernstein conference as management reiterated their revised full-year organic growth guidance of 6.5% to 8%. Additionally, management set second-quarter growth guidance at 5%-7%; and CEO said the company has been seeing a decline in usage of its heart disease device, Watchman.
• PDD -12%; as Q1 net income fell -15% to 12.5B yuan and revenue totaled 106.23B yuan that missed market estimates of 109.33B yuan, as economic weakness dented demand at its domestic discount marketplace, Pinduoduo. PDD is also facing stiff competition from rivals JD and BABA
• PODD -7%; shares fell following a voluntary global Medical Device Correction (MDC) impacting Omnipod 5/DASH/Eros Pods due to manufacturing issues potentially resulting in insulin under-delivery; with ~8.5% of 2025 global Omnipod Pod production impacted and 24 serious adverse events, but no deaths.
• SATL -11%; as 10M share Block Trade priced at $9.94.
• VRRM -70%; shares tumbled as receives termination of agreement notice from CAR; said the termination is expected to reduce 2026 commercial services revenue by $135M-$145M; cuts FY26 adjusted EPS view to $1.19-$1.25 from $1.32-$1.38 and lowers FY26 revenue view to $985M-$995M from $1.020B-$1.030B.
• ZS -30%; reported a solid Q3 with organic ARR growth consistent q/q but the company maintained FY organic ARR guidance despite outperformance and introduced preliminary FY/27 ARR/revenue growth of 16-17%, below expectations; the lower outlook for Q4 and FY27 created some short-term pain.

Closing Recap

Tuesday, May 26, 2026

Another day, another record on Wall Street as tech was the leader again! The Nasdaq 100 index hit new record highs, S&P 500 (SPX) hit record highs (again) while the Smallcap Russell 2000 outperformed behind a pullback in Treasury yields ahead of key PCE inflation data later this week. The S&P 500 comes into the week riding an 8 week winning streak, its longest since 2023. Tech was strong all day as the Nasdaq 100 crosses 30,000 for the first time ever and the Philly semiconductor index (SOX) surges again, more than 5% to fresh record highs behind monster gains in memory stocks. Semi’s continue to be among the highest performing AI stocks in an astounding move the last 3 years, up 80% YTD in 5 months alone. Micron (MU) shares surged 20% to become a trillion dollar valuation company in a dizzying rally that has cemented the largest U.S. memory chipmaker as one of the standout winners of the AI boom (up 73% this month and 214% YTD after being one of the top gainers in the S&P in 2025). One name that has rallied over the last 7 days is the AI leader, NVidia (NVDA), which has fallen 6 of last 7 days including after better results/guidance while AMD sets new record highs above $500 for the first time. The same story playing out on Wall Street every day for months with tech/Ai/semis etc. leading and pushing major averages higher as the only story investors are focusing on while Iran/U.S. talks, Treasury yields, oil prices and inflation concerns have all been a distant second.

While the AI, power, semi chips and industrial growing demand and revs boost the economy and stock market, the next phase of euphoria is coming with the IPO buzz getting louder ahead of upcoming new issues from SpaceX, OpenAI. Elon Musk's SpaceX, which has filed for an initial public offering, aims to morph from a space launch and connectivity provider to a fully scaled vertically integrated AI company. Its S-1 filing noted the acquisition of xAI. OpenAI, according to reports, could launch an IPO as soon as September. Anthropic may follow. OpenAI reportedly generated about $5.7B in Q1 revenue. Growth was largely driven by traction with its coding agent, Codex, as well as ad testing on ChatGPT.

Stats of the day: 1)@Bluekurtic noted on X, “Nasdaq 100 is displaying a level of strength last seen over 16 years ago. Similar to S&P 500, $NDX RSI has stayed above 60 for 32 days while index is within 2% of its all-time high. Two weeks later, NDX was positive 7 of 8 times and 100% of the time three months later. $QQQ” 2) @TradingThomas3 noted on X, “$SOXX has closed green 31 of the last 38 trading days and rallied over 85% in that stretch.”

• Treasury yields slip further; after the benchmark U.S. 10-year Treasury yield briefly climbed to 4.687% last week, its highest level since January 2025, it has since retreated to around 4.50%, falling over 8bps today. The U.S. Treasury sold $69B in 2-year noted at 4.071%, in-line with when issued but well above the prior auction of 3.812% with bid-to-cover at 2.6 vs. prior auction 2.65 as dealers took 12.3%, direct bidders 30.1% and indirect bidders awarded 57.6% of auction.

• Leisure Activity: in golf industry (CALY, GOLF), Truist noted based on their sample data set, U.S. Golf Equipment retail sales were +6.0% Y/y in April; sales gains for April continue to be driven by price (+5.5%); comparatively, volume was +0.5%; putters once again led sales growth while gloves continue to show strength.

• Nuclear/Utility: OKLO said it has been selected by US energy department for advanced talks on using cold war-era plutonium for Nuclear reactor fuel; partnership includes investment of up to $2B via NewCleo-affiliated vehicle; NNE announced the acquisition of Secured Transportation Services LLC (STS), a specialized U.S. based, globally operating nuclear logistics, transportation and services company specializing in the safe, secure and compliant movement of radioactive and nuclear materials.

• BHVN reports new clinical data in epilepsy with opakalim, a selective kv7.2/7.3 activator, highlighting seizure control and markedly differentiated tolerability profile; opakalim prolongs median time to second seizure to 141 days versus. 47 days for placebo; on track for top-line phase 2/3 results in refractory focal epilepsy in 2h 2026
• EDIT shares tumbled after 55.6M share Secondary priced at $2.25.
• LLY agreed to acquire three companies, Curevo, LimmaTech Biologics, and Vaccine Company for nearly $4B, that expand its research and development efforts into infectious disease. Eli Lilly agrees to acquire Curevo for up to $1.5B in cash for shingles vaccine, LimmaTech for $780M, Vaccine Company for $1.55B
• OLMA said it signed a clinical trial and supply agreement with German drugmaker Bayer for its experimental drug OP-3136 which is being developed in combination with Bayer's darolutamide to treat patients with a type of prostate cancer.
• OTLK said it plans to resubmit a marketing application for its eye disease treatment in June after the U.S. FDA declined to approve it in December. OTLK's treatment, Lytenava, targets wet age-related macular degeneration, a common eye disease that causes vision loss due to leaking blood vessels in the retina.

• In Automation: JP Morgan upgraded shares of ALNT, CGNX, and TKR to Overweight, and reiterating Overweight on RRX, HLIO, and GTES, reflecting its conviction in both robust short-cycle recovery and structural tailwinds from data Centers, Robotics, and humanoids. JPM continues to see its Automation sub-sector outperform the broader market, as “mother machines” signal a clear cyclical inflection and accelerating structural growth. Industry data show a durable rebound in industrial activity, with broad based order strength.
• In Airlines: UBS said they believe any potential conflict resolution in the Middle East can act as a meaningful catalyst for airline stocks. UAL is UBS's top pick in the space followed by DAL, ALK, AAL and LUV noting JETS has declined -3.5% YTD vs S&P 500 at around +10% and has created a solid opportunity, as the firm updated estimates imply around 50% EPS growth for 2027 for several airlines.

• In Defense/Gov’t services: BAH was upgraded from Hold to Buy at Stifel saying fundamentals are slowly improving, the stock is beaten down, and evidence suggests the risk of guidance cuts are in the rearview mirror. Substantially better coverage of BAH's initial FY outlook by remaining performance obligations suggests less risk of guidance cuts and makes US comfortable buying shares ahead of likely a strong 2H.

• Data Center Infrastructure: WULF acquired the “Muskie Data Campus” in Eastern Kentucky, targeting more than 1 GW of AI and HPC data center capacity. The initial 500 MW phase is expected to begin ramping in 2H 2028, with another 500 MW targeted for 2H 2030 (big gains today for infrastructure names HUT, CIFR, IREN, CLSK).
• Electrical Components & Equipment: VICR raised its Q2 revenue view to $142M from $126M prior and above consensus $125.47M in view of rising product rev and royalties from additional licensee to its power system tech
• Gaming Software: shares of APP, U bounced early after Edgewater saying that feedback shows META is no longer seen as likely to bid into no-IDFA traffic in the near-term.
• Networking/Optical sector: Bank America raised CIEN tgt to $660 and CSCO to $135 arguing Optical networking demand remains strong following Cisco's Acacia commentary and accelerating Ai infrastructure deployments. The firm highlighted the industry transition from 400G to 800G pluggables as a major multi-year growth driver, with 800G revenues for both companies expected to approach ~$250M each in 2026.
• Internet: GRPN board approves restructuring plan to become Ai-native company; to reduce up to 400 positions globally by end of Q3 2026 and estimates pre-tax charges of $7M-$13M for restructuring while estimates $20M-$25M in annualized cost savings from Payroll actions; increases full year adj EBITDA guidance to $75M-$80M.

• MU price tgt raised to $1,625 from $535 at UBS saying with LTAs now firmly in place across most of the industry, UBS is again raising C2027 2029 estimates and expect EPS to remain comfortably >$100 throughout the period, with MU generating over $400B in FCF across the same timeframe. UBS believes the market will start to put a more “normal” multiple on the stock and MU will continue to Re-rate higher as more details emerge about the structural changes Ai has driven to the entire memory complex.
• MXL and Edgecore Networks announced a strategic partnership to accelerate the development of AI-driven networking solutions for enterprise and service provider markets.
• QCOM has struck a deal to supply AI data center chips to TikTok owner ByteDance, per Bloomberg. ByteDance is set to buy millions of Qualcomm's application-specific integrated circuits to power its AI agent software, making it one of the first major customers for the chipmaker's AI-focused ASICs.
• ALAB, SMTC and INTC all downgraded to Market Perform from Outperform at Northland after run in shares.
• Analog semis: Bank America highlights TXN, ADI, and ON as its top AI power semiconductor picks, arguing the transition toward 800V AI data center architectures remains materially underappreciated. The firm sees TXN as the broadest beneficiary given its large power portfolio and leading share in analog/power management, while ADI’s acquisition of Empower strengthens its exposure to integrated voltage regulators and AI power delivery. The firm raised PTs across TXN, ON, ADI, on view that AI-driven content gains could materially exceed expectations.

Street Recommendations

Wednesday, May 27, 2026

• GXO Barclays analyst Brandon Oglenski upgraded GXO Logistics to Overweight from Equal Weight with a price target of $65, up from $58. The firm sees long-term value in the shares with the company amid the company's renewed focus on growth in the "lucrative" North American contract logistics market. GXO shares have underperformed this year, creating an "opportunity for patient investors," the analyst tells investors in a research note. The company's focus on U.S. expansion and margin improvement under new CEO Patrick Kelleher will serve it well even in a more competitive environment. Amazon's announcement of consolidated logistics offerings earlier this month has created market concerns of a new competitive threat to traditional logistics providers, adds Barclays.
• MU Barclays analyst Tom O'Malley raised the firm's price target on Micron to $1,175 from $675 and keeps an Overweight rating on the shares. The firm sees memory and storage as the "most attractive vertical below accelerators" in the semiconductor group. Barclays expects continued upside to pricing with the supply/demand imbalance persisting through 2027. The biggest opportunity for pricing leverage in hard disk drive will come towards the end of the year as new contract pricing and products come into play and as mix starts shifting towards 40TB drives, the analyst tells investors in a research note.
• STX Barclays analyst Tom O'Malley raised the firm's price target on Seagate to $1,000 from $750 and keeps an Overweight rating on the shares. The firm sees memory and storage as the "most attractive vertical below accelerators" in the semiconductor group. Barclays expects continued upside to pricing with the supply/demand imbalance persisting through 2027. The biggest opportunity for pricing leverage in hard disk drive will come towards the end of the year as new contract pricing and products come into play and as mix starts shifting towards 40TB drives, the analyst tells investors in a research note.
• WDC Barclays analyst Tom O'Malley raised the firm's price target on Western Digital to $620 from $450 and keeps an Overweight rating on the shares. The firm sees memory and storage as the "most attractive vertical below accelerators" in the semiconductor group. Barclays expects continued upside to pricing with the supply/demand imbalance persisting through 2027. The biggest opportunity for pricing leverage in hard disk drive will come towards the end of the year as new contract pricing and products come into play and as mix starts shifting towards 40TB drives, the analyst tells investors in a research note.
• ZS Barclays analyst Saket Kalia lowered the firm's price target on Zscaler to $170 from $180 and keeps an Overweight rating on the shares post the fiscal Q3 report. The company's lower Q4 net new annual recurring revenue guidance and higher capex took estimates down, the analyst tells investors in a research note. The firm says that while Zscaler's 16%-17% fiscal 2027 ARR growth is better than some feared, the stock "feels guilty until proven innocent."

• PANW Berenberg analyst Rahul Chopra raised the firm's price target on Palo Alto Networks to $290 from $215 and keeps a Buy rating on the shares. The firm says cybersecurity stocks have rallied strongly since the end of April, outperforming the broader software sector and the S&P 500 as market sentiment has "inflected sharply." Palo Alto "screens as a quality compounder" and is well positioned to capture wallet share from increasing AI security budgets and be a primary beneficiary of vendor consolidation, the analyst tells investors in a research note.

• UNH Bernstein raised the firm's price target on UnitedHealth to $492 from $444, with 27% upside potential, while keeping an Outperform rating on the shares. The higher price target is based on an improved adjusted EPS outlook from MA recovery, coupled with increased target multiples, the firm says. Bernstein sees the 16% adjusted EPS CAGR growth rate justifying a higher multiple in the cyclical recovery phase for the company.

• ZS BMO Capital analyst Keith Bachman lowered the firm's price target on Zscaler to $178 from $210 but keeps an Outperform rating on the shares. Following the company's guidance, the firm is reducing its FY27 estimated revenue growth rate from 18.3% to 16.9%, though with the stock trading at just 25-times on enterprise value to expected FY27 free cash flow basis, the firm retains its Outperform rating, the analyst tells investors in a research note.

• INTU As previously reported, BofA initiated coverage of Intuit with a Buy rating and $400 price target following a 20% decline after the most recent quarter and 55% decline over the last twelve months. The franchise quality, growth opportunities, and "best-in-class" margins are not fully reflected in the current valuation, the analyst tells investors.
• EPD BofA analyst Jean Ann Salisbury raised the firm's price target on Enterprise Products to $41 from $40 and keeps a Buy rating on the shares. Results from the midstream group came in "broadly better than anticipated," with several names posting beats and raising guidance midpoints, the analyst tells investors in a Q1 earnings recap for the group.
• OKE BofA raised the firm's price target on Oneok to $96 from $94 and keeps a Buy rating on the shares. Results from the midstream group came in "broadly better than anticipated," with several names posting beats and raising guidance midpoints, the analyst tells investors in a Q1 earnings recap for the group.
• TRGP BofA raised the firm's price target on Targa Resources to $300 from $253 and keeps a Buy rating on the shares. Results from the midstream group came in "broadly better than anticipated," with several names posting beats and raising guidance midpoints, the analyst tells investors in a Q1 earnings recap for the group.
• SQM BofA raised the firm's price target on SQM to $58 from $53 and keeps an Underperform rating on the shares. Following "strong" Q1 operating results, the firm raised its 2026-27 EBITDA estimates by 6.2%, reflecting higher Specialty Plant Nutrition volumes and modestly stronger lithium prices following a 15% rebound since end of March.

• MDB Canaccord raised the firm's price target on MongoDB to $400 from $375 and keeps a Buy rating on the shares. The firm said they are increasingly constructive on their ability to monetize within large enterprise accounts and drive growth upside to what we view as a low bar for guidance at 17% total revenue growth.

• THO Citi lowered the firm's price target on Thor Industries to $82 from $100 and keeps a Neutral rating on the shares. The firm's recent recreational vehicle dealer checks indicate a "persistently challenged" retail environment with no meaningful near-term recovery expected. Citi believes the macro uncertainty and higher gas prices are adding to a challenged backdrop for the industry.
• WLK Citi downgraded Westlake to Neutral from Buy with a price target of $95, down from $125. The firm cites the delayed hosing recovery and "less favorable" polyvinyl chloride fundamentals for the downgrade. Citi says that with prices in Asia normalizing on "weak construction activity and ample supply levels," it sees limited catalyst to sustain the current polyvinyl chloride pricing momentum. As a result, the firm expects limited supply-driven upward pricing momentum for Westlake.
• DHR Citi resumed coverage of Danaher with a Buy rating and $230 price target following a suspension of the rating. Danaher reiterated its fiscal 2026 core growth guidance when reporting Q1, the analyst tells investors in a research note. Citi remains constructive on the setup for bioprocessing.

• DAVE Evercore ISI initiated coverage of Dave with an In Line rating and $260 price target. The company has proven its ability to grow its ExtraCash cash advance product and drive EBITDA margins, but shares have largely reflected the recent growth and execution, the analyst tells investors. The firm thinks the debate shifts to whether Dave can prove itself as a more diversified and durable compounder over time, the analyst added.
• HSY Evercore ISI upgraded Hershey to Outperform from In Line with an unchanged price target of $255. After a "disappointing" Easter season, the firm's recent conversations with retailer contacts support a "constructive view" on the confection category and Hershey's plans for the second half of 2026, the analyst tells investors.

• TDOC Goldman Sachs raised the firm's price target on Teladoc to $8 from $7 and keeps a Buy rating on the shares. MedTech has experienced one of its weakest periods in 15-20 years across performance, valuation, and outlook revisions, pressured by sector rotation, slower growth, reimbursement and competitive risks, and aging investment narratives, the analyst tells investors in a research note.
• TNDM Goldman Sachs lowered the firm's price target on Tandem Diabetes to $21 from $24 and keeps a Neutral rating on the shares. MedTech has experienced one of its weakest periods in 15-20 years across performance, valuation, and outlook revisions, pressured by sector rotation, slower growth, reimbursement and competitive risks, and aging investment narratives, the analyst tells investors in a research note.
• ISRG Goldman Sachs lowered the firm's price target on Intuitive Surgical to $558 from $621 and keeps a Buy rating on the shares. MedTech has experienced one of its weakest periods in 15-20 years across performance, valuation, and outlook revisions, pressured by sector rotation, slower growth, reimbursement and competitive risks, and aging investment narratives, the analyst tells investors in a research note.
• COO Goldman Sachs lowered the firm's price target on Cooper Companies to $61 from $69 and keeps a Sell rating on the shares. MedTech has experienced one of its weakest periods in 15-20 years across performance, valuation, and outlook revisions, pressured by sector rotation, slower growth, reimbursement and competitive risks, and aging investment narratives, the analyst tells investors in a research note.
• ZS Goldman Sachs lowered the firm's price target on Zscaler to $179 from $257 and keeps a Neutral rating on the shares. Zscaler's outlook reflects an ongoing maturity in its business and the SASE cycle, with contributions from AI yet to meaningfully move the needle, the analyst tells investors in a research note.

• AZO Guggenheim lowered the firm's price target on AutoZone to $4,000 from $4,400 and keeps a Buy rating on the shares after "mixed" Q3 results. The firm is "only slightly lowering" its estimates as it awaits increased clarity around the "various waterfall benefits," from new hub openings and an accelerated new store opening cadence, the analyst tells investors in a post-earnings note.

• FUL JPMorgan upgraded H.B. Fuller to Neutral from Underweight with an unchanged price target of $58. The firm says the near-term share price performance may be determined by whether Fuller proceeds with the Advanced Medical Solutions transaction or initiates a full review of strategic alternatives. It cites valuation for the upgrade.
• FDX JPMorgan upgraded FedEx to Overweight from Neutral with a price target of $460, up from $432. The firm is taking a more positive stance on the shares into the company's fiscal Q4 report on June 23. FedEx's risk/reward is attractive heading into the separation of the freight business on June 1, the analyst tells investors in a research note. JPMorgan believes the structural improvements at the legacy and remaining Federal Express business are increasingly visible. The last several quarters of "solid execution" put FedEx on a "credible path" to hit its 2029 targets, contends the firm.
• LRMR JPMorgan initiated coverage of Larimar Therapeutics with an Overweight rating and $9 price target. The company's lead asset is nomlabofusp is a subcutaneously administered, recombinant fusion protein designed to deliver frataxin to the mitochondria of patients with Friedreich's ataxia, the analyst tells investors in a research note. The firm views nomlabofusp as an "interesting asset" for the treatment of FA that could treat an underserved market.
• MGM JPMorgan upgraded MGM Resorts to Overweight from Neutral with a price target of $46, up from $41. The firm cites stable leisure demand will support improved Las Vegas Strip growth. JPMorgan's more favorable view of MGM reflects its conviction that the company's Las Vegas Strip EBITDA estimates have bottomed. The company's growth should improve in the months ahead on easier comparisons and the "resilient" U.S. leisure traveler, the analyst tells investors in a research note. It sees a favorable risk/reward at current share levels.
• SRAD JPMorgan downgraded Sportradar to Neutral from Overweight with an unchanged price target of $16 post the Q1 report. The firm sees more compelling near-term upside elsewhere in its gaming coverage. Sportradar does not have a clear path to an improved valuation in the near-term, the analyst tells investors in a research note. JPMorgan believes that for investor sentiment and the stock's valuation to improve from here, Sportradar execution and investor patience will be required.
• CDW JPMorgan analyst Samik Chatterjee upgraded CDW to Overweight from Neutral with an unchanged price target of $130. The firm says CDW's valuation multiple "offers significant upside opportunity." The company's AI and modernization-related demand, elevated backlog, and ongoing "robust" order activity entering Q2 brings an "attractive opportunity," the analyst tells investors in a research note. JPMorgan sees CDW returning to double-digit earnings growth, "helped by robust demand and operating discipline."
• NSIT JPMorgan analyst Joseph Cardoso upgraded Insight Enterprises to Neutral from Underweight with a price target of $105, up from $80. The firm cites continued enterprise demand momentum and the return of cloud growth for the upgrade. Insight's accelerating cloud gross profit growth and elevated hardware backlog "present a compelling opportunity for investors," the analyst tells investors in a research note.
• SNX JPMorgan upgraded TD Synnex to Overweight from Neutral with a price target of $298, up from $220. The firm sees a a "value unlock opportunity" for the shares from a sum-of-the-parts standpoint. TD Synnex also has potential for upside surprises due to near-term demand from enterprise, the analyst tells investors in a research note. JPMorgan believes the growth and margins for Hyve warrant a higher valuation multiple.
• ZS JPMorgan lowered the firm's price target on Zscaler to $205 from $250 and keeps an Overweight rating on the shares. The company reported "solid" Q3 results with "strong" Z-Flex momentum, but its implied Q4 and early fiscal 2027 outlooks disappointed, the analyst tells investors in a research note. The firm says Zscaler's fiscal 2026 guidance increase was less than the magnitude of the Q3 beat, and the early 2027 growth outlook of 16%-17% year-over-year for annual recurring revenue and revenue disappointed. JPMorgan now sees Zscaler's setup into next year as "meaningfully de-risked."

• MOD KeyBanc analyst David Tarantino raised the firm's price target on Modine to $370 from $250 on a refreshed look at the sum-of-the-parts and raised estimates, while keeping an Overweight rating on the shares. Following the company's Q4 earnings, although margin pressures in CS reemerged, the firm believes this is overshadowed by the even more robust long-term trajectory in Data Center, highlighted by the LTA agreement. As such, KeyBanc is incrementally convicted in its long-term thesis, as it believes levers for Modine to continue to deliver upside through continued Data Center wins and portfolio enhancement remain underappreciated.

• KOS Mizuho downgraded Kosmos to Underperform from Neutral with a price target of $3, up from $2. Following the stock's outperformance in 2026, the firm sees better relative value elsewhere in the sector. While Kosmos' balance sheet improvement has been positive, the company is still exiting this year with net debt to EBITDA ratio of 1.8-times, well above the peer average of 0.5-times, the analyst tells investors in a research note. Mizuho also sees a "considerable amount of execution risk ahead" for Kosmos in terms of meeting its production growth and cost reductions targets.
• PSX Mizuho analyst Nitin Kumar upgraded Phillips 66 to Outperform from Neutral with a price target of $212, up from $170. The firm cites the company's improving refining operations, execution of strategic initiatives, and greater leverage to rising refining and chemicals margins for the upgrade. The higher price target reflects Phillips 66's "enhanced" earnings outlook, reflecting 21% upside from current levels, the analyst tells investors in a research note.
• DINO Mizuho downgraded HF Sinclair to Neutral from Outperform with a price target of $79, up from $67. The firm cites the stock's relative valuation versus peers for the downgrade. HF Sinclair's recent management changes may increase uncertainty around the company's strategic direction, the analyst tells investors in a research note.
• PARR Mizuho upgraded Par Pacific to Outperform from Neutral with a price target of $79, up from $58. The firm cites the company's "strong" recent results, a favorable distillate-driven margin backdrop, and "optionality" from small refinery exemption related benefits for the upgrade. Based on the new price target, Par Pacific offers 38% upside, the highest in Mizuho's refining coverage, the analyst tells investors in a research note.
• GPOR Mizuho analyst Nitin Kumar upgraded Gulfport Energy to Outperform from Neutral with a price target of $252, up from $251. The firm cites valuation for the upgrade following the stock's recent pullback. The stock now offers 45% upside to the price target, making current levels a "compelling entry point," the analyst tells investors in a research note. Mizuho says Gulfport has increased its inventory depth by 25%-30% and exceeded drilling efficiencies, while the incoming CEO will help raise the profile of the stock.

• NYAX As previously reported, Oppenheimer analyst Rayna Kumar upgraded Nayax to Outperform from Perform with an $86 price target. Following updates to its TAM analysis and incorporating continued market share gains, the firm believes Nayax can deliver a 41% adjusted EBITDA CAGR through 2027. Over the past two years, the company has demonstrated strong share gains across multiple verticals, including vending, ticketing, EV, amusement, laundromats, and parking. In a volatile macro environment, Oppenheimer is constructive on Nayax's resilient business model, supported by a high level of recurring revenue and diversified geographic exposure. Additionally, the recent increase in oil prices reinforces the long-term opportunity in EV charging, where Nayax's investments, including the Lynkwell acquisition, could provide meaningful upside, adds the firm.

• PTEN Piper Sandler raised the firm's price target on Patterson-UTI to $13 from $12 and keeps a Neutral rating on the shares. The firm notes the company published an investor presentation, including an update to both its U.S. Land drilling and frac outlook, noting the U.S. shale activity inflection is underway. The main headline is management revised Q2 EBITDA estimates higher to $220M above $206M consensus. Despite the positive update, the stock slid 2%, underperforming a flat OIH, likely due to WTI down 3% driven by Middle East headlines around a potential peace deal, Piper adds.

• WMS Stephens upgraded Advanced Drainage to Overweight from Equal Weight with a price target of $175, down from $190. Advanced has "a history of guiding volume conservatively," and encouragingly, there is no evidence or expectation thus far that price increases would lead to meaningful volume compression, the analyst tells investors. The firm believe likely conservative volume guidance, coupled with some degree of potential price-cost benefit as material input cost inflation abates, "provides an attractive set-up."

• SMTC Stifel raised the firm's price target on Semtech to $188 from $157 and keeps a Buy rating on the shares after a "strong print" and guidance.
• EQR Stifel analyst Simon Yarmak raised the firm's price target on Equity Residential to $79 from $78.25 and keeps a Buy rating on the shares.

• PTEN Susquehanna raised the firm's price target on Patterson-UTI to $14 from $13 and keeps a Positive rating on the shares. The firm updated its model and raised its 2Q26 and full-year 2026 estimates following comments at a recent investor conference.

• PEB Truist upgraded Pebblebrook Hotel to Buy from Hold with a price target of $17, up from $14. Pebblebrook Hotel is viewed more positively due to strong forward RevPAR trends, with expectations for continued earnings beats and guidance raises through 2026 driven by solid demand dynamics and potential upside from major events like the World Cup and America250 that are not fully reflected in current guidance, positioning it as a relatively attractive lodging REIT setup into 2027 despite tougher comps ahead, the analyst tells investors in a research note.
• MGM Truist analyst Barry Jonas upgraded MGM Resorts to Buy from Hold with a price target of $55, up from $42. The firm's Las Vegas consumer surveys bring more confidence for a "positive MGM Strip inflection." The company is already seeing a "strong" group and event calendar as well as easier summer compares, the analyst tells investors in a research note. Truist sees potential upside to consensus estimates and believes improving investor sentiment can drive MGM shares higher.

• RPM UBS analyst Joshua Spector upgraded RPM to Buy from Neutral with a price target of $130, up from $118. The firm has a more constructive view of RPM's pricing power in the current inflationary cycle. An inflection in non-residential spending in the second half of 2026 and increased manufacturing and industrial-linked capex spend in the U.S. should be positive for the company, the analyst tells investors in a research note. UBS sees an attractive setup at current share levels.
• ECL UBS upgraded Ecolab to Buy from Neutral with a price target of $325, up from $293. The firm expects the shares to re-rate higher as investors see Ecolab's pricing accelerate to recover raw material costs in the second half of 2026. The company should also gain share in consumer markets with its "OneECL" initiatives, the analyst tells investors in a research note. UBS believes Ecolab's shift in exposure to more high tech and growth industries can increase its volume growth to 4% per year from 1%- 2% historically.
• PVH UBS raised the firm's price target on PVH Corp. to $130 from $120 and keeps a Buy rating on the shares. UBS remains bullish on PVH based on confidence in its long-term earnings growth potential driven by internal improvement initiatives, with expectations for a slight Q1 EPS beat, stronger revenue trends, lower promotions, and a modest FY26 guidance increase that could improve the stock's valuation amid bearish investor sentiment, though higher freight and oil costs remain key risks, the analyst says in a research note.
• SMTC UBS analyst Timothy Arcuri raised the firm's price target on Semtech to $225 from $165 and keeps a Buy rating on the shares. Semtech reported slightly better-than-expected FQ1 results and significantly stronger FQ2 guidance driven by demand for 800G optical products and growing active copper cable deployments for Google Ironwood racks, with continued momentum expected from the 1.6T optical transition, expanding data center networking exposure, additional ACC wins, and broader growth across its portfolio including LoRa+ products tied to the iPhone and wearables ecosystem, the analyst tells investors in a research note.
• BOX UBS raised the firm's price target on Box to $29 from $28 and keeps a Neutral rating on the shares. Box reported accelerating revenue growth into low-teens levels, with strong billings momentum and improving outlook driven by AI-related product traction, suggesting more durable near-term growth and supporting an upward revision to topline estimates, while margins and free cash flow expectations remain largely unchanged and the valuation is viewed as attractive, the analyst tells investors in a research note.

Rating abbreviations…

***OP = Outperform

***SP = Sector Perform

***UP = Underperform

***OW = Overweight

***EW = Equal-weight

***UW = Underweight

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

What’s on Tap Weekly Calendar

Monday May 25^th

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

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

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

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

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

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

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

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

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

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

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