(This is CNBC Pro’s live coverage of Tuesday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) A shoe stock, a crypto platform and a doughnut maker were among the stocks being talked about by analysts on Tuesday. CrowdStrike also faced a big downgrade after its calamitous IT outage last week. Morgan Stanley upgraded Skechers to overweight. Meanwhile, HSBC raised its rating on Krispy Kreme to buy from hold. Its price target implies more than 30% upside. Check out the latest calls and chatter below. All times ET. Birkenstock could gain nearly 40%, Jefferies says Birkenstock is one of the “best-in-class” growth names in the athletic apparel and footwear industry, according to Jefferies. Analyst Randal Konik said that under CEO Oliver Reichert, Birkenstock has undergone a significant transformation and managed to outpace its peer in footwear and luxury segments with a compound annual growth rate of 27% over the past three years. Konik holds a buy rating and $75 price target on shares, which indicates 38% upside potential from Monday’s close. “We believe the company has ample runway to drive healthy top-and-bottom line growth via further expansion into underpenetrated categories, continued mix shift towards DTC, and continued growth globally,” the analyst wrote in a Tuesday note. “Given BIRK’s scarcity-led business model and attractive margin expansion opportunity, its stock should command a premium multiple relative to Athletic Apparel/Footwear peers.” Shares advanced 1.8% Tuesday premarket. —Hakyung Kim 7:32 a.m. Baird raises Qualcomm price target, moves stock to its bullish fresh picks list Qualcomm could be the next big benefactor of the artificial intelligence trade, according to Baird. Analyst Tristan Gerra added the semiconductor stock to his bullish fresh picks list while reiterating his outperform rating. Simultaneously, Gerra raised his price target to $250 from $200. Shares of Qualcomm are up 35% on the year. Gerra’s updated forecast corresponds to a potential 28% upside for the stock. “Qualcomm should benefit from the ramp of AI at the edge in key end-markets including smartphones and automotive, creating content gain opportunities,” the analyst wrote. “Adding Bullish Fresh Pick on reaccelerating units and AI-driven ASP momentum along with market share gains. We would be buyers of QCOM shares on recent share pullback.” Specifically, Gerra thinks that artificial intelligence could drive double-digit increases in Qualcomm’s average selling price starting in the second half of the year. The release of the upcoming iPhone 16 could also boost Qualcomm’s share price, alongside strengthening demand for Qualcomm’s PC and handset businesses. —Lisa Kailai Han 7 a.m. HSBC downgrades CrowdStrike following its global IT outage HSBC is worried that CrowdStrike could face further bad news as the fallout from its global IT outage continues. The bank downgraded the cybersecurity stock to hold from its previous buy rating following CrowdStrike’s global outage, which grounded thousands of flights. Analyst Stephen Bersey also slashed his price target for the stock to $302 from $388. This updated price forecast still implies that shares of CrowdStrike could rise 14%. Shares are up just 3% on the year after plunging 11% during Friday’s trading session and 13% on Monday. Bersey followed analysts at other firms, including Guggenheim, in his downgrade of CrowdStrike. CRWD YTD line CrowdStrike shares The analyst said that he had factored the appropriate risks into his estimates, and had accordingly lowered his forward revenue and earnings forecasts. While Bersey acknowledged that IT outages are normal occurrences, he added that they rarely happen at the massive scale witnessed last week. “Although we give CrowdStrike high marks for quickly and transparently identifying, communicating, and providing a fix, this is a major stain on the company’s near-term reputation, and we think it is likely to impact near-term results and guidance,” he elaborated. “With their quarter ending a little more than a week from the event, late-in-the-quarter deals are likely to be impacted as the investigation and analysis remains ongoing.” —Lisa Kailai Han 6:46 a.m. Piper Sandler lifts Microsoft price target on its successful cloud business Microsoft’s future is looking very bright due to its cloud business, according to Piper Sandler. The financial firm reiterated its overweight on the technology titan and Magnificent Seven member and increased its price target to $485 from $465. Analyst Brent Bracelin cited slightly higher estimates as a catalyst for the price hike. Microsoft stock has already climbed 18% this year. Bracelin’s updated price forecast implies that the stock could have another 9% to go. The analyst pointed to the company’s first-mover advantage in generative artificial intelligence as potentially providing major upside. “Growth investors should look beyond near-term fears of an AI overbuild with the lens of a broader cloud transformation still underway that could help sustain double-digit top-line and bottom-line growth through 2030,” Bracelin wrote. The analyst is also bullish on Microsoft’s positive upwards trajectory. While it took Microsoft Cloud services 13 years to cross over the $100 billion revenue milestone, Bracelin believes it could add the next $100 billion in cloud revenue in just three years. —Lisa Kailai Han 6:24 a.m. Citi upgrades Coinbase to buy, sees 30% upside An improving regulatory outlook is shining a positive light on Coinbase Global, according to Citi. The bank upgraded shares of the cryptocurrency exchange stock to a buy rating from neutral, citing an improving regulatory risk/reward outlook. Analyst Peter Christiansen also lifted his price target to $345 from $260. Shares of Coinbase are up 52% this year. Christiansen’s updated forecast implies that shares could rise another 30%. “The stock has run 52% YTD (total crypto market cap up ~45% YTD), though from here we surmise the upside opportunity from a more conducive regulatory environment to be too large to ignore… potentially unlocking sidelined institutional capital, investment, and increased crypto-native and traditional finance collaboration,” the analyst wrote. Christiansen pointed to shifts in the U.S. political landscape that improve the case for cryptocurrencies as a catalyst. Other idiosyncratic factors in overseas markets could further contribute to Coinbase upside. “Along with industry/crypto market exposure, we think COIN could benefit additionally from a potential U.S. crypto catchup against relatively higher on-chain activity/liquidity that has developed abroad,” he added. —Lisa Kailai Han 5:53 a.m.: HSBC upgrades Krispy Kreme Krispy Kreme’s sale of its stake in Insomnia Cookies could boost its fundamentals, according to HSBC. The bank upgraded shares of the doughnut maker to buy from hold, while standing by its target price of $14. This implies that shares of Krispy Kreme could rally 31% from Monday’s close. Krispy Kreme stock is down 29% on the year, but analyst Sorabh Daga pointed to the company’s announcement that it was selling its majority stake in Insomnia Cookies as a positive catalyst. He also likes the company’s partnership with McDonald’s to put doughnuts in the fast food giant’s stores. DNUT YTD mountain DNUT in 2024 “While the stock has pulled back 26% YTD, the operating outlook has improved with the McDonald’s announcement in March 2024 and a potential debt reduction with today’s announcement,” Daga wrote. “This move comes with a rising focus on the core business of selling and distributing fresh doughnuts … We like these moves to simplify the business and strengthen the core hub & spoke model.” Krispy Kreme is expected to sell its stake in Insomnia Cookies for twice the cost of acquisition, which was in 2018. Daga added that while he expected a complete stake sale, this deal should still help balance the company’s financial leverage and improve its margins. —Lisa Kailai Han 5:53 a.m.: Morgan Stanley upgrades Skechers Shares of Skechers could see a big surge ahead after lagging the broader market, according to Morgan Stanley. The bank upgraded the shoe company to overweight from equal weight and raised its price target to $80 from $60. The new forecast implies upside of 24.5% from Monday’s close. Analysts at Morgan Stanley cited three factors for the rating change: “1) positive indicators in our proprietary work (2024 global sportswear survey & channel checks), 2) continued confidence in the potential for positive EPS revisions over NTM, & 3) room for valuation re-rating as the business’ higher profitability profile & improved marketplace positioning is more appreciated.” Skechers shares are up just 3% year to date, while the S & P 500 has popped more than 16%. SKX YTD mountain SKX year to date —Fred Imbert
