Apple (AAPL), Constellation Brands (STZ) and Ford Motor (F) came under investigation by Wall Street on Wednesday. Here is the latest comment from analysts on these Club holdings, along with our opinion. Apple Analyst Opinion: Baird lowered his estimate for iPhone manufacturing in Apple’s fiscal first quarter by 8 million units, citing persistent challenges at an assembly plant in China. As a result, Baird analysts cut the bank’s forecast for total revenue in the first fiscal year by 5.6% and revised its iPhone revenue estimate downward by 9.6%. However, Baird maintains a positive outlook on Apple’s long-term growth prospects due to its strong ecosystem of products and services, strong cash flow and “high quality” balance sheet. Baird maintains an Outperform or Buy rating on Apple shares and a $170 price target. Apple was trading around 1.7% down in midday trading at $143.59 per share. Opinion of the club: the measures of confinement by the covid-19 in China have represented a risk for the manufacture of the iPhone of Apple, but we believe that it is temporary. There’s no immediate fix for production hiccups in China, but we expect Beijing to reopen the economy more quickly, allowing iPhone production to return to normal. We recognize that there is a possibility that near-term iPhone demand will be affected. However, given the company’s loyal customer base, we believe Apple can make up for lost iPhone units in the coming quarters. Constellation Brands Analyst Opinion: Americans’ alcohol preferences are shifting toward premium products, including spirits and wines, and away from midrange beer, according to a new Bank of America research note Wednesday. A leader in premium wines and high-end imported beer, Constellation is one of the three largest players in the US spirits market, behind Anheuser-Busch InBev (BUD) and Molson Coors (TAP). Two of Constellation’s beer brands, Modelo Especial and Corona Extra, rank in the top ten in the US, with the former one of the fastest growing beers in the country, according to BofA. Constellation was trading 0.58% higher at $255.11 a share on Wednesday afternoon. Club take: Constellation’s strong portfolio of brands makes it a popular choice for consumers. It continues to strengthen its position as the No. 1 provider of high-end beer and no. 1 market share winner in the US beer market, allowing the spirits manufacturer to benefit from a consumer shift to premium beverages. The company is also making leaps and bounds in wine and spirits by updating its portfolio of brands. While no company is immune from an economic downturn, we believe Constellation can serve as a defensive play in a slower economy, where consumers largely maintain their drinking preferences in any type of economic environment. Ford Motor Analyst Opinion: Citi raised its price target on Ford to $14 from $13, while reiterating a neutral rating on the stock. Citi analysts made the revision based on the automaker’s updated estimates, balance sheet entries and auto free cash flow improvement. Analysts said these factors support a “modestly higher” multiple price-earnings target, with room for multiple expansion ahead. Ford rose 0.76% on Wednesday to $13.86 a share. Club Opinion: Ford has benefited from increased pricing power as a result of supply chain challenges impacting production. In the company’s third-quarter results, Ford outperformed earnings and generated strong free cash flow, a key reason we continue to hold the stock. We also like the 4.37% dividend yield that Ford provides to shareholders. Importantly, we believe that Ford’s commitment to becoming a leader in the field of electric vehicles is a catalyst for long-term growth for the company. (The Jim Cramer Charitable Trust is long AAPL, STZ, F. See here for a full list of shares.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR WAIVER. NO LIABILITY OR FIDUCIARY DUTY SHALL EXIST OR BE CREATED BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR BENEFIT IS GUARANTEED.
apple inc. The logo is displayed at the company’s store in the Omotesando district of Tokyo, Japan, on Wednesday, June 3, 2020.
Bloomberg
Apple (AAPL), constellation marks (STZ) and ford engine (F) were the subject of Wall Street investigation on Wednesday. Here is the latest comment from analysts on these Club holdings, along with our opinion.
