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49 ‘fresh-off-the-press’ stock pitches we’ve enjoyed reading in the past two weeks 👇
https://t.co/R8JChwVNsJ https://t.co/4tSCje8oq1
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49 ‘fresh-off-the-press’ stock pitches we’ve enjoyed reading in the past two weeks 👇
https://t.co/R8JChwVNsJ https://t.co/4tSCje8oq1
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Wall St Engine
WSJ reports Trump’s team is preparing a fallback tariff plan if courts strike down the current approach. They’re eyeing Section 122 of the 1974 Trade Act, which allows up to 15% tariffs for 150 days. The move would buy time to build a more legally durable case under Section 301. https://t.co/Csw7B89om1
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WSJ reports Trump’s team is preparing a fallback tariff plan if courts strike down the current approach. They’re eyeing Section 122 of the 1974 Trade Act, which allows up to 15% tariffs for 150 days. The move would buy time to build a more legally durable case under Section 301. https://t.co/Csw7B89om1
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Wall St Engine
Treasury Sec. Bessent says US-China trade talks are “a bit stalled” and may need a Trump-Xi call to move forward. Bessent expects more talks in the next few weeks. https://t.co/MRKHZtatZL
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Treasury Sec. Bessent says US-China trade talks are “a bit stalled” and may need a Trump-Xi call to move forward. Bessent expects more talks in the next few weeks. https://t.co/MRKHZtatZL
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Wall St Engine
U.S. CORPORATE PROFITS DROP 2.9% IN Q1 — the sharpest fall since 2020, per BEA. https://t.co/GY4ik9DeAH
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U.S. CORPORATE PROFITS DROP 2.9% IN Q1 — the sharpest fall since 2020, per BEA. https://t.co/GY4ik9DeAH
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Wall St Engine
Piper Sandler Downgrades $ZS to Neutral from Overweight, Raises PT to $260 from $235
Analyst comments: "While the year appears to be playing out as we had hoped, with the company topping 3Q metrics and the back half billings ramp appearing less daunting given quarterly performance, the recent run in shares (+30% over past 3 months) have us mulling upside from here. Especially in light of integrating an acquisition, a pending guide for the coming FY (ARR-based which could dip below the 20% threshold) and looming Fed uncertainty. We don't think investors should chase what has been solid performance (fundamentals and stock) and should look for more compelling entry points to buy shares. Downgrading to Neutral with a $260 target."
Analyst: Ron Owens
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Piper Sandler Downgrades $ZS to Neutral from Overweight, Raises PT to $260 from $235
Analyst comments: "While the year appears to be playing out as we had hoped, with the company topping 3Q metrics and the back half billings ramp appearing less daunting given quarterly performance, the recent run in shares (+30% over past 3 months) have us mulling upside from here. Especially in light of integrating an acquisition, a pending guide for the coming FY (ARR-based which could dip below the 20% threshold) and looming Fed uncertainty. We don't think investors should chase what has been solid performance (fundamentals and stock) and should look for more compelling entry points to buy shares. Downgrading to Neutral with a $260 target."
Analyst: Ron Owens
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Synopsys $SNPS has told staff in China to stop all sales, services, and new orders following new U.S. export restrictions, per an internal memo seen by Reuters. https://t.co/J2NgQ6dbo5
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Synopsys $SNPS has told staff in China to stop all sales, services, and new orders following new U.S. export restrictions, per an internal memo seen by Reuters. https://t.co/J2NgQ6dbo5
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Wall St Engine
Barclays Upgrades $ROK to Overweight from Equalweight, Raises PT to $350 from $283
Analyst comments: "The main drivers are: 1) Why now? The top-line outlook appears firmer... We had upgraded our rating on ROK to EW from UW in late 2024 in our 2025 Outlook report, as we thought its top line was likely to bottom in 2025 after a very weak 2024, and the stock had underperformed its main Automation peer (EMR) substantially in 2024. However, we did not move to an outright OW rating, because we thought the timing of the top-line trough was very uncertain, amidst uncertainty around the extent of further de-stocking needed by its customers / distributors. Today, while there is a high degree of macro uncertainty, it does seem as if the de-stocking that was under way for much of the past 18 months for some of ROK’s main hardware products (hardware is around two-thirds of its sales, with the balance comprised of software and services) has run its course, and it does not seem as if there was an outsized degree of tariff pre-buy for its products in early 2025, based off sequential trends for ROK and its peers."
Analyst: Julian Mitchell
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Barclays Upgrades $ROK to Overweight from Equalweight, Raises PT to $350 from $283
Analyst comments: "The main drivers are: 1) Why now? The top-line outlook appears firmer... We had upgraded our rating on ROK to EW from UW in late 2024 in our 2025 Outlook report, as we thought its top line was likely to bottom in 2025 after a very weak 2024, and the stock had underperformed its main Automation peer (EMR) substantially in 2024. However, we did not move to an outright OW rating, because we thought the timing of the top-line trough was very uncertain, amidst uncertainty around the extent of further de-stocking needed by its customers / distributors. Today, while there is a high degree of macro uncertainty, it does seem as if the de-stocking that was under way for much of the past 18 months for some of ROK’s main hardware products (hardware is around two-thirds of its sales, with the balance comprised of software and services) has run its course, and it does not seem as if there was an outsized degree of tariff pre-buy for its products in early 2025, based off sequential trends for ROK and its peers."
Analyst: Julian Mitchell
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Ray-Ban maker EssilorLuxottica is buying Optegra, which runs 70+ eye hospitals across Europe, in a push into AI-driven eyecare. Deal builds on recent med-tech buys like Heidelberg Engineering and Cellview Imaging. https://t.co/1zTqbFLUJZ
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Ray-Ban maker EssilorLuxottica is buying Optegra, which runs 70+ eye hospitals across Europe, in a push into AI-driven eyecare. Deal builds on recent med-tech buys like Heidelberg Engineering and Cellview Imaging. https://t.co/1zTqbFLUJZ
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Wall St Engine
Morgan Stanley on $CRM (OW; PT $404): "1Q26 results left questions for investors around timeline to realizing growth inflection, but metrics were largely in line with expectations amidst an uneven macro environment."
"Market reacted more negatively than we anticipated, with questions centered on Core performance, margins, & Agentforce."
"Are Margins Tapping Out? With Q1 operating margin of 32.3% coming in slightly shy of the Street at 32.6%, and FY26 guidance for 34% margin was only reiterated despite the favorable currency move in the quarter driving the raise to as-reported revenue guidance (+$400M), investors questioned whether Salesforce is signaling a moderation in margin expansion potential ahead. While management did not call out any specific impacts pressuring margin in the quarter, we would note 32.3% margins came more in line with MSe (at 32%), and Q1 is Salesforce's seasonally weakest quarter, where margins tend to ramp throughout the year thereafter. As it relates to the lack of guidance flow through on FX, while foreign currency strengthening drives benefits to revenue, heightened exposure to international expenses largely offsets the revenue tailwinds, driving unchanged margin guidance."
"That said, we do acknowledge expectations should contemplate a more modest pace of margin expansion ahead following the company's structural focus on improving profitability amidst the burgeoning of a slower-growth environment in FY23. More philosophically, given the momentum building behind Agentforce and Data Cloud, management spoke to its propensity to invest behind the growth opportunities ahead, in the form of accelerated AE hiring to support the higher-touch selling motion in the near term as these are new product cycles. Constructively, the company reiterated its commitment to continuing to improve margins despite the focus on growth, noting ability to redeploy headcount from areas like customer service towards the new forward deployed engineer strategy. As such, a faster pace of growth with a return to double digits YoY, combined with modest margin expansion, should yield durable ~low teens Free Cash Flow growth ahead, which, against the Large-Cap average multiple of ~1.8X EV/FCF/G, implies shares trading at a ~low 20x EV/FCF multiple, leaving material room for expansion from the ~mid-teens multiple the shares trade at today."
Analyst: Keith Weiss
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Morgan Stanley on $CRM (OW; PT $404): "1Q26 results left questions for investors around timeline to realizing growth inflection, but metrics were largely in line with expectations amidst an uneven macro environment."
"Market reacted more negatively than we anticipated, with questions centered on Core performance, margins, & Agentforce."
"Are Margins Tapping Out? With Q1 operating margin of 32.3% coming in slightly shy of the Street at 32.6%, and FY26 guidance for 34% margin was only reiterated despite the favorable currency move in the quarter driving the raise to as-reported revenue guidance (+$400M), investors questioned whether Salesforce is signaling a moderation in margin expansion potential ahead. While management did not call out any specific impacts pressuring margin in the quarter, we would note 32.3% margins came more in line with MSe (at 32%), and Q1 is Salesforce's seasonally weakest quarter, where margins tend to ramp throughout the year thereafter. As it relates to the lack of guidance flow through on FX, while foreign currency strengthening drives benefits to revenue, heightened exposure to international expenses largely offsets the revenue tailwinds, driving unchanged margin guidance."
"That said, we do acknowledge expectations should contemplate a more modest pace of margin expansion ahead following the company's structural focus on improving profitability amidst the burgeoning of a slower-growth environment in FY23. More philosophically, given the momentum building behind Agentforce and Data Cloud, management spoke to its propensity to invest behind the growth opportunities ahead, in the form of accelerated AE hiring to support the higher-touch selling motion in the near term as these are new product cycles. Constructively, the company reiterated its commitment to continuing to improve margins despite the focus on growth, noting ability to redeploy headcount from areas like customer service towards the new forward deployed engineer strategy. As such, a faster pace of growth with a return to double digits YoY, combined with modest margin expansion, should yield durable ~low teens Free Cash Flow growth ahead, which, against the Large-Cap average multiple of ~1.8X EV/FCF/G, implies shares trading at a ~low 20x EV/FCF multiple, leaving material room for expansion from the ~mid-teens multiple the shares trade at today."
Analyst: Keith Weiss
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