Starbucks (NASDAQ:SBUX): Oppenheimer believes that high expectations and high valuation leave Starbucks poorly positioned going into its results on July 25, but the firm thinks the stock has compelling catalysts over the longer term and has raised its target on the shares to $75 from $65 while maintaining its Outperform rating.
Broadcom (NASDAQ:BRCM): Morgan Stanley said Broadcom has the best risk-reward going into the second-quarter earnings given the severe sell-off, higher Apple dollar content, and increased exposure to Samsung’s midrange phones.
Yahoo (NASDAQ:YHOO): Following its report of higher-than-expected earnings per share but missed revenue and lowered guidance, Bernstein notes that the company’s display business ex-TAC contracted 11 percent year-over-year as other revenue fell, excluding payments from Alibaba. The firm keeps a Market Perform rating on Yahoo.
J.C. Penney (NYSE:JCP): Credit Suisse believes J.C. Penney’s home launch may be adding to challenges rather than acting as a catalyst. Home merchandise pricing has been adjusted down by at least 30 percent, and clearance items in other departments appears to be elevated. The firm expects second-quarter gross margins to be lower than expected and reduced its earnings per share estimates to -$1.22 from -94 cents. The shares are rated Underperform, with a $15 price target.