On Friday, the S&P 500 is poised for a higher opening, buoyed by news of the Strait of Hormuz being reopened to commercial traffic following a 10-day ceasefire in the Israel-Lebanon conflict. This development has contributed to a significant drop in oil prices, which fell approximately 10%. President Donald Trump commented on the U.S.-Iran situation, suggesting that the war “should be ending pretty soon.” The S&P 500, which has been on a winning streak, closed at a record high in Thursday’s trading session.
In China, iPhone shipments surged by 20% in the first quarter, according to data from CounterPoint Research. This surge comes in the face of an overall decline in the smartphone market due to rising memory costs, marking a positive sign for Apple, the company’s most profitable product. Analysts continue to advise investors to “own, don’t trade” this stock.
On the other hand, major price target cuts have impacted Netflix’s stock price, which has seen a drop of over 9%. Analysts from Barclays reduced their price target from $115 to $110, Wolfe Research lowered theirs from $110 to $107, and Rosenblatt cut theirs from $96 to $95 following disappointing guidance from the streaming giant.
In banking news, Bank of America made a notable portfolio adjustment by replacing JPMorgan with Goldman Sachs in their best ideas list while maintaining buy ratings for both institutions. Goldman Sachs remains favored, but there is growing skepticism around Wells Fargo, prompting a downgrade of its rating to a hold equivalent.
Another stock in the spotlight is Danaher, which faced a price target reduction from Rothschild & Co Redburn, dropping from $220 to $205. Analysts believe that the company’s exposure to its aging stainless-steel Pall business will hinder growth, leading to the exit from Danaher in February by some investors.
JPMorgan also adjusted its price target for Procter & Gamble from $165 to $162. Ahead of the company’s upcoming earnings report, there is little enthusiasm, despite P&G being held as a hedge against economic uncertainty.
The luxury brand Estee Lauder has seen its price target cut from $121 to $98 by JPMorgan, which has now removed the stock from its focus list but retains a buy rating. The upcoming earnings report scheduled for May 1 is highly anticipated, with analysts suggesting the company may need significant restructuring.
In contrast, Affirm has received a boost from Morgan Stanley, which has upgraded the stock to a top pick. Analysts attribute the change to an overreaction to private credit concerns that are currently weighing on financial stocks. They are optimistic that the investor day meeting next month could act as a catalyst for the buy-now-pay-later firm.
Meanwhile, Prologis is gaining attention with new CEO Dan Letter at the helm. Analysts feel that he has understated several positive developments, including a rise in rents and expansion in the data center sector, since taking over in January.
Finally, Abbott Laboratories faced multiple price target cuts from various firms: Benchmark, Stifel, and Bank of America all lowered their targets to $120 from previous highs of $145 and $150. Despite these cuts following lackluster earnings and an unimpressive conference call, analysts from these firms still rate the stock as a buy.
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