[ad_1]
Apple ( AAPL ), Constellation Brands ( STZ ) and Ford Motor ( F ) were the focus of Wall Street research on Wednesday. Here’s the latest analyst commentary on these club holdings, along with our view. Apple analyst’s take: Citing continued challenges at an assembly plant in China, Apple cut its estimate for iPhone production in the company’s fiscal first quarter by 8 million units. As a result, analysts at Baird first cut the bank’s forecast for total revenue for the fiscal year by 5.6% and lowered its iPhone revenue estimate to 9.6%. However, Baird maintains a positive outlook on Apple’s long-term growth prospects due to its strong ecosystem of products and services, solid cash flow and “high-quality” balance sheet. Baird maintains an Outperform or Buy rating on Apple’s stock and a $170 price target. Apple was up about 1.7% at $143.59 a share in midday trading. Take the club: China’s Covid-19 lockdown measures have put Apple’s iPhone production at risk, but we believe this is temporary. There is no immediate solution to the manufacturing slowdown in China, but we believe Beijing will quickly reopen the economy, allowing iPhone production to get back on track. We acknowledge that short-term iPhone demand is likely to suffer. However, given the company’s loyal customer base, we believe Apple will make up for the lost iPhone units in the coming quarters. Constellation Brands Analyst Take: Americans’ alcohol preferences are shifting toward premium products, including spirits and wine, and away from the middle of the road, according to a new research note from Bank of America on Wednesday. Constellation — a leader in premium wine and premium imported beer — is one of the three largest companies in the U.S. liquor market behind Anheuser-Busch InBev ( BUD ) and Molson Coors ( TAP ). Two of Constellation’s beer brands, Modelo Special and Corona Extra, are in the top ten in the U.S., with the former one of the fastest-growing beers in the country, according to BofA. By midday Wednesday, Constellation was up 0.58% at $255.11 a share. Club Tag: Constellation’s strong portfolio of brands makes it a popular choice for consumers. No. in the US beer market. 1 premium beer supplier and continues to strengthen its position as the No. 1 market share gainer, allowing the brewer to benefit from the consumer shift to premium beverages. The company is also making progress in wine and spirits by enhancing its portfolio of brands. While no company is immune to economic downturns, we think Constellation can serve as a defensive play in a slow economy, with consumers largely maintaining their drinking preferences in any type of economic environment. Ford Motor Analyst’s Take: Citi raised its price target on Ford to $14 from $13, while reiterating a neutral rating on the stock. Analysts at Citi based the revision on the automaker’s updated valuations, balance sheet entries and improved auto free cash flow. Analysts say these factors support a “moderately high” price-to-earnings multiple target, with room for further expansion below. Ford traded up 0.76% on Wednesday, to $13.86 a share. Club Tag: Ford has benefited from greater pricing power as a result of supply chain challenges affecting production. In the company’s third-quarter results, Ford delivered solid earnings and generated strong free cash flow, a key reason we continue to hold the stock. We also like the 4.37% dividend that Ford pays shareholders. Importantly, we believe Ford’s commitment to leading the electric vehicle industry will be a long-term growth driver for the company. (See here for a full list of Jim Cramer’s Foundation Long AAPL, STZ, F. stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you’ll receive trade alerts before Jim trades. Jim waits 45 minutes after sending a trade alert before buying or selling a share in his trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing a trade alert before executing the trade. The Investment Club information above is subject to our terms and conditions and privacy policy, along with our disclaimer. No fiduciary duty or obligation is, or will be created, by your receipt of any information relating to Investment Club. No specific results or profits are guaranteed.
Apple Inc. The logo will be displayed at the company’s store in the Omotesando district of Tokyo, Japan on Wednesday, June 3, 2020.
Bloomberg
Apple (AAPL), Constellation Brands (STZ) and Ford Motor (f) Subject to Wall Street research on Wednesday. Here’s the latest analyst commentary on these club holdings, along with our view.
[ad_2]
Source link