Gold bars to be exempt from tariffs, White House clarifies
Investing.com -- Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week.
InvestingPro subscribers always get first dibs on market-moving AI analyst comments. Upgrade today!
Stitch Fix
What happened? On Monday, Williams Blair upgraded Stitch Fix (NASDAQ:SFIX) to Outperform. The firm does not issue price targets.
*TLDR: Stitch Fix pivots to growth, skeptics linger. Data versus doubt—time will tell.
What’s the full story? Stitch Fix CEO Matt Baer and CFO David Aufderhaar met with William Blair, signaling the company’s pivot to offense as it exits the second phase of Baer’s restructuring strategy and charges into the “growth” phase. Revenue growth in the April quarter—a year ahead of guidance—has emboldened the firm’s outlook. The meetings underscored foundational changes implemented over the past two years and reinforced the long-term value proposition William Blair believes will drive active client growth by fiscal 2026.
Yet, Stitch Fix shares remain shackled by a pervasive narrative: its market is inherently small, capping upside despite improving fundamentals. The firm has long argued the model resonates with a niche audience but lacks mass appeal, evident in the failure to sustain historical active customer levels. For skeptics to re-engage, Stitch Fix must deliver multiple quarters of healthy growth at improving margins. Baer’s optimism hinges on tapping deep pools of new customers and extracting greater wallet share from its existing base—a leap of faith the market has yet to embrace.
Baer’s vision is anchored in two key metrics. First, a survey by a major retailer reveals that price is no longer king; time and convenience now drive consumer behavior. Second, less than 10% of shoppers enjoy buying clothes in physical stores. In this landscape, Stitch Fix thrives, armed with unparalleled customer data and connectivity that position it as a transformative force in retail.
William Blair sees potential, but the market remains unconvinced. Trust the data? Or trust the skepticism?
The clock is ticking.
Oklo
What happened? On Tuesday, Cantor Fitzgerald initiated on Oklo Inc (NYSE:OKLO) with an Overweight rating and a $73 price target.
*TLDR: Efficient reactors, huge AI demand upside.
What’s the full story? Cantor sees Oklo as a rare, high-quality business—built to last. The company’s small modular reactors leverage proven fast-fission tech with three decades of operational history, reducing execution risk while keeping costs low. Regulatory tailwinds and an insatiable AI-driven power demand—particularly from data centers, which could claim 8.6% of U.S. electricity by 2035—position Oklo to capture tens of billions in TAM.
What’s not priced in? Oklo’s reactors run on recycled nuclear waste, cutting fuel costs by 80%. Cantor expects PPA rates above $125/MWh, driving 50%+ free cash flow margins. With a 14GW pipeline and 5GW likely deployed by 2035, this is a scalable, off-grid, carbon-free solution—the kind of durable advantage investors like.
Upside? If fuel recycling commercializes, profitability could surprise. But even without it, Oklo is undervalued.
Palantir
What happened? On Wednesday, Mizuho (NYSE:MFG) upgraded Palantir Technologies Inc (NASDAQ:PLTR) to Neutral with a $135 price target.
*TLDR: Terrific company, terrifying price tag.
What’s the full story? The analysts admit they massively underestimated the surge across both commercial and government segments - now bracing for a possible fifth straight quarter of accelerating growth when Q2 drops in August.
But that nosebleed valuation? It’s trading like some alien software stock that crash-landed from a parallel universe where multiples still make sense.
This could end ugly when gravity returns. Yet Palantir’s weird alchemy of AI mystique, government contracts, and industrial tech voodoo might just defy normal rules. Mizuho’s eyeing safer bets in software right now, but even they can’t ignore the street’s cult-like fervor - this stock’s either about to pioneer new valuation math or become a cautionary tale for the ages.
Steve Madden
What happened? On Thursday, Citi upgraded Steven Madden (NASDAQ:SHOO) to Buy with a $32 price target.
*TLDR: Peak tariff pain spells 2025 rebound opportunity.
What’s the full story? Citi sees SHOO getting strangled by 145% tariffs through Q2 – this is peak pain. But the moment that Chinese tariff noose loosens in Q2 ’25, everything flips: Vietnam production scales, Mexico comes online, and the KG brand pumps high-margin sales. The FY26 math gets beautiful fast – 40%+ gross margins and at least $2.15 EPS shattering the $1.84 consensus.
The Street’s missing the playbook while chasing sneaker ghosts. KG’s acquisition will slam revenue 500bps above expectations as the fashion pendulum swings violently toward dresses. Yet the stock trades at 11.5x earnings like it’s still 2020. When the rebound snaps – and it will – this discount evaporates overnight.
Citi’s already front-running the squeeze.
Chipotle
What happened? On Friday, BMO Capital upgraded Chipotle Mexican Grill (NYSE:CMG) to Outperform with a $65 price target.
*TLDR: Chipotle’s recovery gains momentum after a tough first half.
What’s the full story? BMO sees comps turning a corner. After two quarters of declines, current weekly sales trends point to potential 3%+ growth in the second half—supported by easier comparisons, limited-time offers, and marketing boosts. While the team maintains cautious estimates, upward surprises seem plausible if return-to-office trends accelerate or political sentiment improves. Chipotle’s value proposition remains compelling, insulating it somewhat from economic wobbles.
Margins should stabilize by autumn. After 150 basis points of deleverage in early 2025, restaurant margins could turn flat in Q3 and rise 50 bps in Q4 as portioning costs fade and sales leverage improves. Aluminum tariffs may pinch, but pricing power and efficiency gains provide buffers. Yes, the stock’s recent 11% rebound leaves it lagging most restaurant peers year-to-date, but BMO believes a return to Chipotle’s historical P/E is justified—momentum is building where it counts. This upgrade isn’t about Q2’s expected softness; it’s about the path ahead.