Apple ( AAPL ), Constellation Brands ( STZ ) and Ford Motor ( F ) came under Wall Street scrutiny on Wednesday. Here’s the latest analyst commentary on these Club holdings, along with our review. Apple Analyst: Baird cut Apple’s estimate for iPhone production in the first quarter of its fiscal year by 8 million units, citing continued difficulties at an assembly plant in China. As a result, Baird analysts cut the bank’s total revenue forecast for the fiscal first by 5.6% and cut their iPhone revenue estimate by 9.6%. Nevertheless, Baird maintains a positive outlook for Apple’s long-term growth prospects, thanks to a strong ecosystem of products and services, solid cash flow and a “high-quality” balance sheet. Baird maintains an outperform or buy rating and a $170 price target on Apple stock. Apple was trading at $143.59 a share, up about 1.7% in midday trading. The club’s take: China’s Covid-19 lockdown measures have posed a risk to Apple’s iPhone production, but we believe this is temporary. There is no immediate solution to the manufacturing failures in China, but we hope that Beijing will open the economy sooner and allow iPhone production to resume. We recognize that short-term iPhone demand may 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 Take: Americans’ alcohol preferences are shifting toward premium products, including spirits and wine, and away from mid-range beer, according to a new Bank of America research note Wednesday. Constellation — a leader in premium wine and premium imported beer — is one of the three largest players in the U.S. spirits market, behind Anheuser-Busch InBev ( BUD ) and Molson Coors ( TAP ). Two of Constellation’s beer brands, Modelo Especial and Corona Extra, rank among the top ten in the U.S., according to BofA, with the former one of the fastest-growing beers in the country. Constellation traded up 0.58% at $255.11 a share during mid-day trading on Wednesday. Club Choice: Constellation’s strong brand portfolio makes it a popular choice for consumers. It continues to solidify its position as the No. 1 premium beer supplier and No. 1 market share gainer in the US beer market, allowing the spirits maker to capitalize on consumers’ shift to premium beverages. The company is also advancing in wine and spirits by improving its brand portfolio. While no company is immune to an economic downturn, we think Constellation can play a defensive play in a slower economy and consumers are largely protective of their alcohol consumption choices in any 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’s analysts made the adjustment based on the automaker’s updated estimates, balance sheets and improved automatic cash flow. Analysts said these factors support the multiple’s “modestly high” price-to-earnings target, with little room for much expansion. Ford traded up 0.76% on Tuesday, hitting $13.86 a share. Club pick: Ford has benefited from higher pricing power as a result of supply chain issues affecting production. According to the company’s third-quarter results, Ford delivered earnings growth and generated strong free cash flow, which is the main reason we continue to hold the stock. We also like Ford’s 4.37% dividend yield to shareholders. Importantly, we believe Ford’s commitment to being a leader in electric vehicles is a long-term growth catalyst for the company. (Jim Cramer’s Charitable Trust is long AAPL, STZ, F. See here for a complete list of stocks.) As a subscriber to the CNBC Investment Club with Jim Cramer, you’ll receive trade alerts before Jim trades. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’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. NO FIDUCIARY ENTITY OR DUTIES ARE OR WILL BE CREATED BY YOUR ACCEPTANCE OF INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO RESULTS OR PROFITS ARE GUARANTEED.
The Apple Inc. logo is displayed at the company’s store in the Omotesando district of Tokyo, Japan, Wednesday, June 3, 2020.
Bloomberg
apple (AAPL), Constellation Brands (STZ) and Ford Motor (F) came under Wall Street scrutiny on Wednesday. Here’s the latest analyst commentary on these Club holdings, along with our review.