Wall St Engine
Citi Lowers PT on $GAP to $30 from $33 - Buy
Analyst comments: "1Q EPS of $0.51 beat consensus of $0.46 driven by stronger sales and lower SG&A. Gap brand comps at +5% were solid but disappointed high market expectations (high-single-digit to low-double-digit). Old Navy comps at +3% beat consensus and market expectations. Because Old Navy is a much bigger contributor to sales and profitability versus Gap, this is not a bad tradeoff.
Management reiterated FY25 guidance (excluding tariffs) of $2.30–$2.40, but tariffs are expected to be a $100–150 million headwind to second-half COGS (post-mitigation), implying FY25 guidance with tariffs of $2.00–$2.20. We believe tariff assumptions include conservatism (only 55% mitigation assumed, no pricing offset).
Overall, Gap is executing very well, delivering topline consistency at Old Navy and Gap (and management said 2Q is off to a good start), gross margin upside, and showing cost discipline. While we expect Gap to be in the penalty box near-term on the Gap brand falling short of market expectations and tariff guidance, we believe risk/reward is especially attractive on the pre-market stock weakness."
Analyst: Paul Lejuez
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Citi Lowers PT on $GAP to $30 from $33 - Buy
Analyst comments: "1Q EPS of $0.51 beat consensus of $0.46 driven by stronger sales and lower SG&A. Gap brand comps at +5% were solid but disappointed high market expectations (high-single-digit to low-double-digit). Old Navy comps at +3% beat consensus and market expectations. Because Old Navy is a much bigger contributor to sales and profitability versus Gap, this is not a bad tradeoff.
Management reiterated FY25 guidance (excluding tariffs) of $2.30–$2.40, but tariffs are expected to be a $100–150 million headwind to second-half COGS (post-mitigation), implying FY25 guidance with tariffs of $2.00–$2.20. We believe tariff assumptions include conservatism (only 55% mitigation assumed, no pricing offset).
Overall, Gap is executing very well, delivering topline consistency at Old Navy and Gap (and management said 2Q is off to a good start), gross margin upside, and showing cost discipline. While we expect Gap to be in the penalty box near-term on the Gap brand falling short of market expectations and tariff guidance, we believe risk/reward is especially attractive on the pre-market stock weakness."
Analyst: Paul Lejuez
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Wall St Engine
HERE'S WHAT ANALYSTS HAVE TO SAY AFTER $COST EARNINGS:
Bernstein SocGen (Outperform, PT: $1,153)
"Costco reported 3Q25 results and managed to beat consensus expectations – with an 8% comp ex gas & FX – despite its well telegraphed monthly sales results. Gross and EBIT margins also came in slightly ahead of expectations while EPS of $4.28 was a 5c beat. We continue to believe that COST is the highest quality company in our coverage, with multiple decades of global warehouse expansion opportunities ahead. At 53.5x P/E, however, the stock is priced for perfection. A deceleration in the strong HSD comp sales growth trend could introduce downside risk and provide a better entry point for investors."
Raymond James (Outperform, PT: $1,070)
"We reaffirm our Outperform rating and maintain our $1,070 price target following Costco’s F3Q25 results. The company delivered another solid quarter, with adjusted EPS ahead of expectations and strong comp growth of 8.0% y/y (ex-gas and FX), led by healthy traffic and resilient average ticket. Membership trends remain robust, with executive penetration and digital engagement supporting deeper share of wallet and strong renewal rates. While valuation remains elevated (COST +25% over the past 12 months vs. S&P 500 +12%), we believe the premium is warranted given Costco’s consistent execution, defensive category mix, and strong member loyalty. Looking ahead, we continue to model ~25 net new annual openings, broad-based share gains across food and non-food, and ample flexibility for reinvestment and capital returns. Costco’s supply chain capabilities, strong vendor relationships, and pricing discipline leave it better positioned than most to absorb tariff-related pressures. Importantly, in a potentially more inflationary environment, the club model’s value proposition and scale advantage could become even more compelling to consumers. COST remains a core long-term compounder in any macro backdrop."
Loop Capital (Buy, PT: $1,110)
"We are maintaining our Buy rating and trimming our price target on Costco from $1,115 to $1,110 as we build a bit of near-term cushion into our estimates given macro uncertainties. Our PT is driven by our discounted NOPAT model. Core SSS beat consensus for each period of the quarter. MFI grew 10.4% in the quarter, right in line with our estimate. Costco is slow to pass on cost increases, and we think this is leading to market share growth. These opportunities should increase as inflation spreads on tariff-impacted products. Over time, Costco capitulates to market pricing trends to capture its normal margin levels. Our rating remains Buy on Costco, as we see outsized value driving traffic to clubs. Our F25 EPS estimate of $17.96 is 16 cents below consensus as we expect COST to eat some inflation in the near-term."
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HERE'S WHAT ANALYSTS HAVE TO SAY AFTER $COST EARNINGS:
Bernstein SocGen (Outperform, PT: $1,153)
"Costco reported 3Q25 results and managed to beat consensus expectations – with an 8% comp ex gas & FX – despite its well telegraphed monthly sales results. Gross and EBIT margins also came in slightly ahead of expectations while EPS of $4.28 was a 5c beat. We continue to believe that COST is the highest quality company in our coverage, with multiple decades of global warehouse expansion opportunities ahead. At 53.5x P/E, however, the stock is priced for perfection. A deceleration in the strong HSD comp sales growth trend could introduce downside risk and provide a better entry point for investors."
Raymond James (Outperform, PT: $1,070)
"We reaffirm our Outperform rating and maintain our $1,070 price target following Costco’s F3Q25 results. The company delivered another solid quarter, with adjusted EPS ahead of expectations and strong comp growth of 8.0% y/y (ex-gas and FX), led by healthy traffic and resilient average ticket. Membership trends remain robust, with executive penetration and digital engagement supporting deeper share of wallet and strong renewal rates. While valuation remains elevated (COST +25% over the past 12 months vs. S&P 500 +12%), we believe the premium is warranted given Costco’s consistent execution, defensive category mix, and strong member loyalty. Looking ahead, we continue to model ~25 net new annual openings, broad-based share gains across food and non-food, and ample flexibility for reinvestment and capital returns. Costco’s supply chain capabilities, strong vendor relationships, and pricing discipline leave it better positioned than most to absorb tariff-related pressures. Importantly, in a potentially more inflationary environment, the club model’s value proposition and scale advantage could become even more compelling to consumers. COST remains a core long-term compounder in any macro backdrop."
Loop Capital (Buy, PT: $1,110)
"We are maintaining our Buy rating and trimming our price target on Costco from $1,115 to $1,110 as we build a bit of near-term cushion into our estimates given macro uncertainties. Our PT is driven by our discounted NOPAT model. Core SSS beat consensus for each period of the quarter. MFI grew 10.4% in the quarter, right in line with our estimate. Costco is slow to pass on cost increases, and we think this is leading to market share growth. These opportunities should increase as inflation spreads on tariff-impacted products. Over time, Costco capitulates to market pricing trends to capture its normal margin levels. Our rating remains Buy on Costco, as we see outsized value driving traffic to clubs. Our F25 EPS estimate of $17.96 is 16 cents below consensus as we expect COST to eat some inflation in the near-term."
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Wall St Engine
HERE'S WHAT ANALYSTS HAVE TO SAY AFTER $DELL EARNINGS:
BofA (Buy, PT: $155)
"Dell reported F1Q revs beating expectations, but EPS came in at the low-end of guide due to modest tariff impacts to CSG margins and slightly weaker growth from ISS. F2Q guide far exceeded Street expectations due to an incremental $5bn in revs from AI servers. At the highest level, we see the potential for Dell to deliver significantly higher AI server revs over the next two years (>$30bn) with strong upside to EPS (>$3). Reiterate Buy as we are still in the early stages of AI adoption, margins from mix, and tailwind from upcoming PC refresh and longer-term AI PC adoption."
Raymond James (Outperform, PT: $150)
"We maintain our Outperform rating on DELL following its F1Q26 report that reflected a beat on the top-line, but non-GAAP EPS that missed expectations. Shares were up 2% after-hours with a higher FY26 EPS outlook. For F2Q26, Dell guided AI server revenue of ~$7B, which was nearly 3x our prior estimate and AI server backlog more than tripled to $14.1B. Despite this, the full-year FY26 revenue outlook was unchanged, and implies AI contributions drop off sharply in F2H26. Additionally, while F2Q26 revenue guidance was ~18% higher than our prior estimate, our updated model reflects non-GAAP EBIT largely unchanged vs our prior estimate, highlighting the continued margin challenges that AI servers present in the immediate term."
Morgan Stanley (Overweight, PT: $135)
"Raising our estimates slightly as AI server strength helps to offset some minor enterprise caution; Remain OW. Outside of seasonality dynamics – including a stronger than expected F2Q, though at the expense of margins – our FY26 estimates don't change materially post-earnings... AI momentum is accelerating, DELL is gaining share in traditional enterprise markets... outperformance will need to be driven moreso by positive estimate revisions than multiple expansion... To be clear, we remain OW because we see a path to positive EPS revisions... However, to get even more bullish we'd need to see clear emergence of AI attach, which we just believe is longer tailed."
JPMorgan (Overweight, PT: $125)
"AI server demand and orders in F1Q as well as greater than typical deployment expectations for F2Q were the bright spot in an otherwise subdued outlook... AI backlog expanded to $14.4 bn... combination of readiness from multiple customers and better supply visibility... management remained hesitant to point to material upside to full-year expectations... softness in the macro impacting the higher margin product lines remains a source of concern in the near-term... Reiterate OW with a long-term view."
Goldman Sachs (Buy, PT: $130)
"AI server momentum and buybacks offset EPS miss & F2026 EBIT outlook cut on traditional servers, storage, and PCs... DELL delivering a record $12.1 bn of AI server orders... ~$7 bn should translate into revenue in F2Q26E... ISG margins missed but primarily related to mix, not AI servers... CSG EBIT in-line and outlook better-than-feared... record $1.98 bn of share buybacks... raised F2026 EPS guidance by $0.10 to $9.15–$9.65."
Barclays (Equalweight, PT: $123)
"DELL continues to perform well in AI servers, but orders are translating to revenues at an uneven pace... concerned that these Blackwell rack scale systems will pressure GM percentage... expecting AI server market to become increasingly competitive... traditional servers and storage are softer next quarter, including weak PC, which adds uncertainty for F2H."
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HERE'S WHAT ANALYSTS HAVE TO SAY AFTER $DELL EARNINGS:
BofA (Buy, PT: $155)
"Dell reported F1Q revs beating expectations, but EPS came in at the low-end of guide due to modest tariff impacts to CSG margins and slightly weaker growth from ISS. F2Q guide far exceeded Street expectations due to an incremental $5bn in revs from AI servers. At the highest level, we see the potential for Dell to deliver significantly higher AI server revs over the next two years (>$30bn) with strong upside to EPS (>$3). Reiterate Buy as we are still in the early stages of AI adoption, margins from mix, and tailwind from upcoming PC refresh and longer-term AI PC adoption."
Raymond James (Outperform, PT: $150)
"We maintain our Outperform rating on DELL following its F1Q26 report that reflected a beat on the top-line, but non-GAAP EPS that missed expectations. Shares were up 2% after-hours with a higher FY26 EPS outlook. For F2Q26, Dell guided AI server revenue of ~$7B, which was nearly 3x our prior estimate and AI server backlog more than tripled to $14.1B. Despite this, the full-year FY26 revenue outlook was unchanged, and implies AI contributions drop off sharply in F2H26. Additionally, while F2Q26 revenue guidance was ~18% higher than our prior estimate, our updated model reflects non-GAAP EBIT largely unchanged vs our prior estimate, highlighting the continued margin challenges that AI servers present in the immediate term."
Morgan Stanley (Overweight, PT: $135)
"Raising our estimates slightly as AI server strength helps to offset some minor enterprise caution; Remain OW. Outside of seasonality dynamics – including a stronger than expected F2Q, though at the expense of margins – our FY26 estimates don't change materially post-earnings... AI momentum is accelerating, DELL is gaining share in traditional enterprise markets... outperformance will need to be driven moreso by positive estimate revisions than multiple expansion... To be clear, we remain OW because we see a path to positive EPS revisions... However, to get even more bullish we'd need to see clear emergence of AI attach, which we just believe is longer tailed."
JPMorgan (Overweight, PT: $125)
"AI server demand and orders in F1Q as well as greater than typical deployment expectations for F2Q were the bright spot in an otherwise subdued outlook... AI backlog expanded to $14.4 bn... combination of readiness from multiple customers and better supply visibility... management remained hesitant to point to material upside to full-year expectations... softness in the macro impacting the higher margin product lines remains a source of concern in the near-term... Reiterate OW with a long-term view."
Goldman Sachs (Buy, PT: $130)
"AI server momentum and buybacks offset EPS miss & F2026 EBIT outlook cut on traditional servers, storage, and PCs... DELL delivering a record $12.1 bn of AI server orders... ~$7 bn should translate into revenue in F2Q26E... ISG margins missed but primarily related to mix, not AI servers... CSG EBIT in-line and outlook better-than-feared... record $1.98 bn of share buybacks... raised F2026 EPS guidance by $0.10 to $9.15–$9.65."
Barclays (Equalweight, PT: $123)
"DELL continues to perform well in AI servers, but orders are translating to revenues at an uneven pace... concerned that these Blackwell rack scale systems will pressure GM percentage... expecting AI server market to become increasingly competitive... traditional servers and storage are softer next quarter, including weak PC, which adds uncertainty for F2H."
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Wall St Engine
Trump: The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY! https://t.co/fL2K58OCx4
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Trump: The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY! https://t.co/fL2K58OCx4
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Wall St Engine
Jefferies Upgrades $U to Buy from Hold, Raises PT to $29 from $22
Analyst comments: "We are upgrading Unity based on the view the improved Vector ad model can drive accelerating revenue growth in FY26 and beyond. While early, the green shoots we're seeing from Vector, upcoming feature upgrades, and new management give us confidence in at least high-single-digit percent revenue growth in FY26. With high incremental EBITDA margins in the Grow business, we believe the risk-reward is favorable as we see potential for significant EBITDA upside. Raising estimates 6% and our price target to $29 (from $22)."
Analyst: Brent Thill
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Jefferies Upgrades $U to Buy from Hold, Raises PT to $29 from $22
Analyst comments: "We are upgrading Unity based on the view the improved Vector ad model can drive accelerating revenue growth in FY26 and beyond. While early, the green shoots we're seeing from Vector, upcoming feature upgrades, and new management give us confidence in at least high-single-digit percent revenue growth in FY26. With high incremental EBITDA margins in the Grow business, we believe the risk-reward is favorable as we see potential for significant EBITDA upside. Raising estimates 6% and our price target to $29 (from $22)."
Analyst: Brent Thill
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$NVDA vs $AMD now that both have reported Q1 earnings: https://t.co/G5K0H30Mey
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$NVDA vs $AMD now that both have reported Q1 earnings: https://t.co/G5K0H30Mey
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