It was a fantastic week for stocks. The S & P 500 and the Dow Jones Industrial Average hit record highs as investors digested earnings and prepared for more. In turn, Wall Street analysts made a slew of bullish calls on five of our portfolio names — all of which report earnings next week SBUX YTD mountain Starbucks (SBUX) year-to-date performance Wall Street’s call: Wells Fargo forecasted an improved backdrop for Starbucks. The analysts said in a note Tuesday that sentiment was likely “too weak” ahead of earnings. Quarterly results are set for release before the opening bell Tuesday. Wells Fargo reiterated a buy rating on the stock. “A SBUX miss seems priced in & we like the ’24 setup from here,” analysts wrote. “It didn’t take long for the tide to turn post-last quarter’s rally, as shares quickly faded on softer Q1 checks, rising China concerns & negative union/labor headlines.” The Club’s take: We agree the headwinds seem priced it. Although the stock’s been a portfolio laggard, we’re bullish on management’s plans to progressively expand margins in the years to come. The firm also expects to unlock an additional $3 billion in savings programs and efficiencies in the next three years – another upside for the Club holding. MSFT YTD mountain Microsoft (MSFT) performance year-to-date Wall Street’s call: Morgan Stanley boosted Microsoft’s price target to $450 per share from $415, citing the company’s strength from generative artificial intelligence efforts. “Strong positioning across a broad GenAI portfolio looks to drive further share gains of the IT wallet and pushes our FY25 rev/eps 3% ahead of cons,” analysts wrote this week ahead of Tuesday’s after-the-bell earnings. Morgan Stanley said 68% of the CIOs it surveyed expect to “adopt Microsoft GenAI solutions over the next 12-months.” The Club’s take: Analysts are right to assume more upside on Microsoft’s AI efforts. The company’s been the clear leader among Big Tech in the nascent space, following a hefty…
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