(That is CNBC Professional’s dwell protection of Tuesday’s analyst name and Wall Avenue chatter. Please refresh each 20-Half-hour to see the most recent posts.) Shares talked about by analysts on Tuesday embrace a media large and a cybersecurity firm. Bernstein downgrades Warner Bros. Discovery following disappointing second-quarter report. In the meantime, Mizuho raised its value goal for Palo Alto Networks forward of the corporate’s upcoming earnings report. See the most recent calls and chats beneath. All instances are Japanese Time. 5:50 a.m.: UBS says the water firm’s shares may rise practically 30% Traders could also be overlooking Xylem’s progress alternatives, in line with UBS. Analyst Damian Karas initiated a purchase score on the water utility inventory. Karas’ value goal of $165 suggests the inventory may rise 29.4% from Monday’s closing value. “We imagine XYL is the main pure water firm,” Karas wrote in a be aware to shoppers. Its “MSD+ progress profile is much less cyclical than friends and has about 100 foundation factors of revenue alternative per yr.” Karas famous that the inventory is priced for simply 2.7% compound annual gross sales progress by means of 2028, consistent with historic progress. Principally the identical. However UBS expects progress to be nearer to six%, that means it might be a lot increased than merchants at the moment count on. The corporate additionally mentioned traders ought to brace for a multi-decade progress cycle because it feels a lift from urbanization and authorities assist for infrastructure upgrades. On the similar time, the analyst additionally mentioned that the corporate is “working from a powerful place” after subsequent growth by means of the US$7.5 billion acquisition of Evoqua. Xylem shares are up 11.5% this yr. XYL YTD mountain XYL 12 months-to-date — Alex Harring 5:47 AM: Bernstein downgrades Warner Bros. Discovery Channel, citing second-quarter earnings Enstein is taking a wait-and-see method to Warner Bros. Discovery Channel. Analyst Laurent Yoon downgraded the media inventory to market carry out from outperform and lowered his value goal by $2 to $8. Nevertheless, this new goal represents a 19.2% upside from Monday’s closing value. Yoon’s downgrade comes after the leisure firm missed quarterly expectations for adjusted EBITDA and income in its second-quarter earnings report final week. Analysts identified that the corporate’s inventory value hit its lowest level because the merger of WarnerMedia and Discovery in 2022. “This sounds dangerous, and it’s,” Yin wrote in a be aware to shoppers on Tuesday. “Whereas there are some nuances, reminiscent of comparisons, the market response displays that traders have little persistence given the continued deterioration of WBD.” Yoon particularly identified that income fell 6% within the quarter in contrast with the identical interval a yr in the past, EBITDA fell 16%. When evaluating the 2 time frames, free money stream plummeted 43%. Including to the uncertainty, the NBA opted to signal rights offers with different media firms, ending a decades-long partnership with Warner Bros. Discovery’s Turner Sports activities. Warner Bros. Discovery Channel is at the moment suing the NBA. Shares of Warner Bros. Discovery fell 0.8% in pre-market buying and selling on Tuesday. The inventory is down about 41% in 2024. — Alex Harring 5:47 AM: Mizuho raises value goal on Palo Alto Networks Traders ought to think about shopping for shares of Palo Alto Networks forward of earnings. Analyst Gregg Moskowitz raised his value goal on the cybersecurity inventory to $380 from $350, sustaining an outperform score. The brand new forecast implies an increase of practically 15%. Moskowitz wrote: “Our inspection signifies that PANW demand is rising for the primary time in a number of quarters. Extra particularly, massive transaction exercise is stronger, prospects have been consolidating extra procurement by means of PANW, and demand for firewalls and subscriptions feels like are more healthy. “As well as, we imagine current management adjustments are bettering relationships with some outstanding channel companions,” the analyst added. Palo Alto will announce earnings on August 19, with its inventory value rising greater than 12% for the yr. Nevertheless, the inventory has fallen greater than 1% over the previous month. PANW YTD MOUNTAIN PANW YTD — Fred Imbert
