(This is CNBC Pro’s live coverage of Tuesday’s analyst conference call and Wall Street chatter. Refresh every 20-30 minutes to see the latest posts.) Among the stocks analysts were talking about on Tuesday were a shoe stock, a cryptocurrency platform and a doughnut maker. CrowdStrike also faced a big downgrade after a disastrous IT outage last week. Morgan Stanley raised Skechers to overweight. Meanwhile, HSBC raised its rating on Krispy Kreme to buy from hold. Its price target suggests upside of more than 30%. Check out the latest conference call and chatter below. All times ET. 7:49 a.m. JPMorgan Upgrades EQT Corp Natural gas stock EQT is set to rebound, according to JPMorgan. Analyst Arun Jayaram raised the stock to overweight from neutral, saying in a client note that EQT’s fundamentals are improving and it could be a catch-up trade. “After significantly underperforming relative to natural gas stocks (down 21% YTD), risk/reward is leaning more positive given confidence in the debt reduction program, attractive outlook for natural gas fundamentals, and mixed sentiment on the stock as much of the AI froth on natural gas stocks has abated,” the analysts said. Jayaram also said concerns about EQT’s 2025 capital spending plans are overstated. JPMorgan has a price target of $42 per share for EQT, nearly 18% above Monday’s closing price. –Jesse Pound 7:39 a.m. Birkenstock Could Up Nearly 40%, Jefferies Says Birkenstock is one of the “best-in-class” growth stocks in the sports apparel and footwear industry, according to Jefferies.Analyst Randall Konik said that under CEO Oliver Reichert’s leadership, Birkenstock has undergone a major transformation, outperforming its peers in footwear and luxury with a compound annual growth rate of 27% over the past three years. Konik has a buy recommendation on the stock and a $75 price target, which suggests upside potential of 38% from Monday’s closing price. Birkenstock’s stock price year-to-date “We believe the company has ample room to drive healthy top- and bottom-line growth driven by further expansion into underpenetrated categories, a continued mix shift to DTC, and continued global growth,” the analyst wrote in a note on Tuesday. “Given Birkenstock’s scarcity-driven business model and attractive margin expansion opportunities, the company’s stock should command a premium multiple relative to athletic apparel/footwear peers.” Shares were up 1.8% in premarket trading on Tuesday. —Hakyung Kim 7:32 a.m. Baird Raises Qualcomm Price Target, Adds Stock to Bullish New Stock List Qualcomm could be the next big benefactor of artificial intelligence deals, according to Baird. Analyst Tristan Guerra added the semiconductor stock to his bullish new stock list while reiterating an outperform rating. At the same time, Guerra raised his price target to $250 from $200. Qualcomm shares are up 35% this year. Guerra’s latest forecast indicates the stock could rise 28%. “Qualcomm should benefit from the proliferation of edge AI in key end markets such as smartphones and automotive, creating content acquisition opportunities,” the analyst wrote. “We’re adding it to our bullish new stock list as momentum for units and AI-driven ASPs re-accelerates along with market share gains. The recent share price pullback makes QCOM stock a buy.” Specifically, Guerra believes artificial intelligence could drive double-digit increases in Qualcomm’s average selling price starting in the second half of this year.The upcoming launch of the iPhone 16 could also boost Qualcomm’s stock price, along with stronger demand for Qualcomm’s PC and mobile phone businesses. —Lisa Kailai Hung 7:00 a.m. HSBC Downgrades CrowdStrike After Global IT Outage HSBC is concerned CrowdStrike could face more bad news as the fallout from the global IT outage continues. The bank downgraded the cybersecurity stock to “hold” from a previous “buy” after CrowdStrike’s global outage caused thousands of flights to be canceled. Analyst Steven Bursey also cut his price target on the stock to $302 from $388. This latest price forecast suggests CrowdStrike’s stock could still rise 14%. The stock is up just 3% year to date after plunging 11% during Friday’s trading session and 13% on Monday. Bursey follows analysts at other firms, including Guggenheim, in downgrading CrowdStrike’s rating. CRWD Year-to-date Line CrowdStrike Shares The analyst said he has factored in the appropriate risks into his estimates and lowered his forecasts for future revenue and profits accordingly. Bercy acknowledged that IT outages are commonplace, but added that major outages like those seen last week are rare. “While we appreciate the prompt and transparent manner in which CrowdStrike identified, communicated, and provided a fix, this represents a significant blemish on the company’s near-term reputation and will likely impact near-term results and guidance,” he detailed. “With the end of the quarter just over a week from the event, trading later in the quarter will likely be impacted as investigations and analysis continue.” —Lisa Kailai Hung 6:46 AM Piper Sandler Raises Microsoft Stock Target on Cloud Success Microsoft’s future is very bright thanks to its cloud business, according to Piper Sandler. The firm reiterated its overweight rating on the tech giant and member of the Magnificent Seven, raising its price target to $485 from $465. Analyst Brent Braslin cited a slight forecast upside as a catalyst for the stock’s rise. Microsoft shares are already up 18% this year. Braslin’s latest stock price forecast suggests the stock could rise another 9%. The analyst noted that the company’s first-mover advantage in generative artificial intelligence could provide significant upside. “Growth investors should look beyond near-term concerns of AI overload to the broader cloud transformation underway that could help sustain double-digit revenue and earnings growth through 2030,” Braslin wrote. The analyst is also bullish on Microsoft’s positive upward trajectory. While it took Microsoft’s cloud services 13 years to cross the $100 billion revenue milestone, Braslin believes it can add another $100 billion in cloud revenue in just three years. —Lisa Kailai Han 6:24 a.m. Citi upgrades Coinbase to buy, sees 30% upside Citi says an improving regulatory outlook is a boon for Coinbase Global. The bank upgraded the cryptocurrency exchange’s stock to buy from neutral, citing an improving regulatory risk/reward outlook. Analyst Peter Christiansen also raised his price target to $345 from $260. Coinbase shares have risen 52% this year. Christiansen’s latest forecast suggests the stock could rise another 30%. “While the company’s shares have risen 52% YTD (crypto market cap is up about 45% YTD), we see too much upside potential from an improving regulatory environment to ignore going forward, potentially unlocking stranded institutional capital and investment and strengthening the collaboration between crypto-natives and traditional finance,” the analyst wrote. Christiansen noted that the changing political climate in the U.S. is helping to make the case for using crypto as a catalyst. Other idiosyncratic factors in overseas markets could further contribute to Coinbase’s rise. “In addition to the industry/crypto market exposure, we believe COIN could further benefit from the potential catch-up of US cryptocurrencies to the relatively high on-chain activity/liquidity developed overseas,” he added. —Lisa Kailai Hung 5:53 a.m.: HSBC upgrades Krispy Kreme Krispy Kreme’s sale of its Insomnia Cookies stake could boost the company’s fundamentals, according to HSBC. The bank upgraded the doughnut maker’s shares to buy from hold, but its price target remains at $14. This means Krispy Kreme’s shares could rise 31% from Monday’s closing price. Krispy Kreme shares are down 29% this year, but analyst Sohrab Daga pointed to the company’s announcement of the sale of a majority stake in Insomnia Cookies as a positive catalyst. He also liked the company’s partnership with McDonald’s to place its doughnuts in the fast-food giant’s locations. DNUT YTD Mountain DNUT 2024 “While shares are down 26% year to date, business prospects are improving due to McDonald’s March 2024 announcement and potential debt reduction announced today,” Daga wrote. “The move comes with increased focus on the core business of selling and distributing fresh doughnuts…We like these moves that simplify the business and strengthen the core hub-and-spoke model.” Krispy Kreme is expected to sell its stake in Insomnia Cookies for double the price it paid for it in 2018. Daga added that while he expects a complete sale of the shares, the deal should help balance the company’s financial leverage and improve profit margins. —Lisa Kailai Han 5:53 a.m.: Morgan Stanley Upgrades Skechers shares could be a big winner in the coming days after lagging the broader market, according to Morgan Stanley.The bank upgraded the shoe company to overweight from equal weight and raised its price target to $80 from $60. The new forecast suggests an upside of 24.5% from Monday’s closing price. Morgan Stanley analysts cited three factors for the rating change: “1) positive metrics in our proprietary research (2024 Global Sportswear Survey and Channel Check); 2) continued confidence in the likelihood of EPS revisions above NTM; and 3) room for valuation reassessment as the higher profitability profile of the business and improved market positioning are more highly valued.” Skechers shares are up just 3% year to date, while the S&P 500 is up more than 16%. SKX YTD SKX YTD –Fred Imbert
All the market-moving chatter on Wall Street on Tuesday
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