Apple (AAPL), Constellation Brands (STZ) and Ford Motor (F) were the subject of Wall Street’s survey on Wednesday. Here’s the latest analyst commentary on these Club holdings, along with our opinion. Apple Analyst Commentary: Baird lowered his estimate for Apple’s fiscal first-quarter iPhone manufacturing by 8 million units, citing persistent challenges at an assembly plant in China. As a result, Baird analysts lowered the bank’s forecast for first-year total revenue by 5.6% and revised the iPhone revenue estimate by 9.6%. However, Baird maintains a positive outlook on Apple’s long-term growth prospects due to its strong product and service ecosystem, solid cash flow and “high quality” balance sheet. Baird maintains an outperformer, or Buy, rating for Apple stock and a price target of $170. Apple was trading up about 1.7% in midday trading at $143.59. per action. Club Shot: China’s Covid-19 lockdown measures posed a risk to Apple’s iPhone manufacturing, but we believe it’s temporary. There is no immediate solution to the production setbacks in China, but we expect Beijing to reopen the economy more quickly, allowing iPhone production to get back on track. We recognize that there is a possibility that short-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’s Brand Analyst Finds: Americans’ alcohol preferences are shifting toward premium products, including spirits and wines, and away from middle-of-the-road beer, according to a new research note Wednesday from Bank of America. Constellation — a leader in premium wines and premium imported beer — is one of the top three players in the US liquor market, behind Anheuser-Busch InBev (BUD) and Molson Coors (TAP). Two of Constellation’s beer brands, Modelo Especial and Corona Extra, are among the top ten in the US, with the former being one of the fastest growing beers in the country, according to BofA. Constellation was trading up 0.58% at $255.11 a share as of Wednesday afternoon. Club Outlet: Constellation’s strong brand portfolio makes it a popular choice for consumers. It continues to strengthen its position as the No. 1 supplier of premium beers and the No. 1 market share gain in the US beer market, allowing the spirits manufacturer to benefit from a consumer shift to premium beverages. The company is also making headway in wines and spirits by refreshing its portfolio of brands. While no company is immune to an economic downturn, we believe that Constellation can serve as a defensive play in a slower economy, with consumers largely maintaining their alcohol consumption preferences in any type of economic environment. Ford Motor Analyst Commentary: Citi raised its price target for Ford to $14 from $13 while reiterating a neutral rating on the stock. Citi analysts revised based on the automaker’s updated estimates, balance sheet information and improved auto free cash flow. Analysts said these factors support a “modestly higher” price-earnings multiple target with room for multiple expansion. Ford rose 0.76% on Wednesday to $13.86 a share. Club taking: Ford has benefited from higher pricing power as a result of supply chain challenges affecting production. In the company’s third quarter results, Ford posted superior earnings and generated strong free cash flow, one of the main reasons we continue to hold the stock. We also like the 4.37% dividend yield that Ford offers to shareholders. Importantly, we believe Ford’s commitment to becoming a leader in the field of electric vehicles is a catalyst for long-term growth for the company. (Jim Cramer’s Charitable Trust is long AAPL, STZ, F. See a complete list of shares here.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim places a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charity fund’s portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after the trade alert is issued before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
The Apple Inc logo. is displayed at the company’s flagship store in the Omotesando district of Tokyo, Japan on Wednesday, June 3, 2020.
Bloomberg
Litter (AAPL), constellation marks (STZ) and ford engine (F) were the subject of a Wall Street survey on Wednesday. Here’s the latest analyst commentary on these Club holdings, along with our opinion.