The retail sector is facing challenging times, particularly for lower to middle-class consumers. JPMorgan retail analyst Matt Boss highlights several factors contributing to these difficulties, including rising mortgage rates, increased credit card debt, stagnant wages, and declining apparel sales. Additionally, the unemployment rate is at an 18-month high, personal savings rates are below 2019 levels, and the resumption of student loan payments places a further burden on consumers.
Meanwhile, the commercial real estate sector is causing uncertainty for banks. However, financial firms like Wells Fargo and Morgan Stanley may find some relief due to favorable tailwinds. JPMorgan has also revised its price target for Netflix ahead of the company’s quarterly earnings report, reducing it to $455 per share. Despite this adjustment, JPMorgan maintains a buy rating for the video streaming giant.
Additionally, online advertising technology company Trade Desk has received a buy rating and a price target of $100 per share from UBS. Analysts are optimistic that companies will shift their ad spending towards streaming platforms. However, Workday, which provides cloud services for HR and finance teams, experienced a significant drop in shares following details from its Investor Day. The company’s annual subscription revenue growth target has been lowered, raising concerns among investors.
Furthermore, Bank of America has reduced its price target on Advance Auto Parts due to potential risks in the new CEO’s turnaround plans. TD Cowen has initiated coverage of Diageo, a company in the beer, wine, and spirits industry, with a price target of $152 per share. The CNBC Investing Club also expresses interest in Constellation Brands, which owns well-known brands such as Corona and Modelo.
In other price target updates, TD Cowen lowers the price target for Walgreens Boots Alliance and raises it for Paychex. JPMorgan has also increased its price target for Take-Two Interactive based on positive developments and anticipates the upcoming release of Grand Theft Auto VI. Finally, Barclays cuts the price target for United Parcel Service ahead of its earnings release next month.