Friday's Analyst Movers: ARM, CMG, CVX & OXY Gain on Upgrades

0:00I'm with many details on many stories including arm getting an upgrade. That's Diane King Halls. She's joining me right now. HSBC out speaking about arm good morning to you a happy Friday, Nicole. Yeah, arm flexing its AI muscle this morning with a Upgrade a double upgrade in fact from HSBC upgrading it to a buy from reduced nearly doubling its price target to 205 from here. They say that investors are underestimating arm shift away from smartphone source AI driven data centers We know that's where a lot of the money flows are going now and it says the market is under appreciating arms positioning within this space All major hyperscalers. It says HSBC says they're now using arm based server CPUs Moving to newer designs that could double royalty revenue per chip. That means stronger monetization right as AI infrastructure Spending just continues to ramp right it boasts well for arm from the view of HSBC the bottom line as arm may no longer just be a mobile story It's shifting and increasingly becoming a core player and the AI build out you can see that in fact in the reaction in the market today

1:06The market likes this move and in the if you look at the year-to-day move it has outperformed the S&P 500 year-to-day Nicole all right and also we're taking a look at Chipotle An upgrade there outperform at Mizzouho. Yeah, it's interesting to see this one because we know that the you know fast casual has been a Challenge landscape for some time. There's questions about can the consumer continue to afford the burrito ball But today you have someone on the cell side upping their view on Chipotle It's Mizzouho upping it to outperform They've listed the price target to 40 shares are responding and kind today with a gain now this stock has underperformed the S&P 500 year-to-day But Mizzouho says sales trends are improving and margins finally coming back into focus now They do see first quarter same sales coming in flat But that's better than other estimates ahead of street consensus views here Momentum they think is building as the quarter progresses They like the marketing they like the value offerings that Chipotle has they like the menu innovation

2:08They say those are key drivers for Chipotle Also, you can't ignore that there are easier comps in which they point out Mizzouho points out that that is when you look at on a year over a year basis You know, it had a really tough year last year. So there is the potential to move ahead from here So they see upside in Q2 both comps and traffic Again, it's about the marketing the promotion the value that Chipotle is offering and they think there will be a sales acceleration Throughout the balance of this year Nicole all right, and you know, I was just looking at the Dow Jones industrial average which is now having its worst month Since 2002, it's up 10 months in a row It was the only index that actually had that consecutive gains, but it's down about 6% and as I'm looking at the movers on the Dow Jones industrial average Sales source Amazon Microsoft Nvidia Apple. I mean you get my vibe here. Yeah, you know how to tech a weighing down on the end down the Dow Jones industrial average and of course, it's 30 not to not 500 like the S 500

3:10Which is a better gauge, but you know, I still love to look at the Dow Jones industrial average now another big picture story is Energy and you have some stories here a couple of energy moves here HSBC Turning more bullish on Chevron and this is a comparison story. They'd like Chevron over Exxon mobile here They're upgrading Chevron to a buy they're lifting their price are going to 215 for this company They think there's a powerful setup as oil prices sir I know oil has been taking us to have back today, but oil prices remain elevated What are we sitting at 96 or just above 96 dollars a barrel on West Texas intermediate Brad Cruz still elevated They think Chevron stands out versus Exxon because of much lower exposure to the Middle East They think that's a key advantage as geopolitical risk continue to rise. We've been watching The landscapes there and they think a Chevron offers greater earnings sensitivity to higher crew prices meaning they could benefit more if oil Stays elevated compared to Exxon they also point to evaluation discount arguing that the stock does not fully reflect

4:15Improving cash flow and earnings potential from here in terms of market reaction today We are seeing shares of Chevron move higher by just shy of 1% Nicole And the best performer in the Dow Jones industrial average, you know what I mean So as I was combing through those and you were talking about that I see it's followed by Verizon and Procter and Gamble. Okay, Diane Kay Hall great to see you I mean it's worth noting the move that we've seen Brent for example is up more than 50% in the one month here So we'll continue to follow all of that