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Let's take a look now, add some stocks making news in the week ahead. I'm Nathan Hager, joined by Bloomberg Markets Live Managing Editor Christine Aquino with more earnings on TEP this week starting Monday with Hymns and Hers Health. Weren't they going to beef with Nova Nordisk recently? Christine? How are things in telehealth these days?
That beefough is a thing of the past because they're cooperating with each other now, right, And so that is one of the reasons why the likes of JP Morgan initiated a stock with an overweight rating because of that deal. So now before they had a beef and now they have a partnership. And so Hins and Hers will be selling wee govy on its platform. And JP Morgan is saying that that deal could mark a turning point and
remove a significant legal overhang. So that bothes well for its earnings potentially, and you know, we have options of course, starting to price that potential move there, we could see it potentially a thirteen percent move in the share after the company reports earnings, and so if that is all fine and dandy, they meet or beat estimates, then that could be a thirteen percent share move higher, But otherwise it could be a thirteen percent share move lower. So we'll see about that.
Yeah.
Well, I mean, this stock has already been doing pretty well so far this year, has it it? I mean, where is the bar when it comes to what investors want to see from HIMS this time around?
Yeah? I mean, of course, the demand for the GLP ones very much still sustaining the business model here, and I think the fact that you know, they are able to pivot because potentially you know, they're now in cooperation with Novo and so they're kind of turning themselves from a competitor into a retailer in that space, and so, you know, I think investors will want to see is that business model working, how much kind of gains could
they expect from that sort of partnership. Is it something that could potentially also open up opportunities with other GLP one manufacturers and sellers in the market, right, And so, yeah, for Hymns and Hers, it's going to be a question of how well are they able to pivot after this initial legal setback.
I guess we could call Hymns and her sort of tech adjacent, right, because this is going to be kind of a busy week for tech earnings overall. We're going to hear from Applied Materials on Thursday. This has been a pretty crazy quarter for chip makers. Where are we expecting chip equipment makers to stack well?
Based on the movement in the Semiconductor is index that we've seen, I mean, I think it's all going to be positive, So potentially high expectations for the earnings for Applied Materials here, and you know the options data that we're seeing at the moment implying about a six percent move.
After those results, we have seen a spate of analyst moves for the stock, ubs raising its price target to four hundred and eighty from four hundred and thirty previously, Seaport Global Securities giving Applied Materials on new by rating
and a five hundred dollars price target. So it looks like a lot of expectations very positive, especially because of all the optimism that we've seen in the chip space and our own bloomering intelligence analysts weighing in as well, and they're looking for sales and fiscal second quarter finishing higher and also similar gains for operating profits. So it looks like there's going to be a lot of positivity baked in. We'll see if they can deliver on that.
You could say that there's a lot of positivity baked in already. I mean, this stock is serious double digits on the year so far. Is it price to perfection?
I mean, that is definitely the worry every time we see such big gains like these, Nathan, I mean, you always have the naysayers in the market right say that
this can possibly keep going at nauseum. But just you know, if you look at kind of the plans of the biggest hyper scalers when it comes to their cap x right, the likes of your alphabets, your Amazon's, your Apples, it seems like there is never ending demand at the moment for any equipment, any infrastructure related to AI and the data center buildout, and so you know, in some ways it could be priced perfection, but it may be a while yet before we actually see that pullback in stock.
Speaking of the AI build out, we are going to hear from another beneficiary of that phenomenon on Wednesday when Cisco Systems reports. What are we expecting from Cisco?
Absolutely, Nathan, Well, you know, similarly positive things are blooming, intelligence analysts saying that they're focusing primarily on Cisco's optical and high capacity networking products and that has benefited from
the AI infrastructure ramp up. As you've mentioned, the expectation is for that to keep benefiting from that, and specifically for Cisco, that could result in an increase to about five billion dollars and its AI order outlooks so not too shabby for the stock, and that's really helped shield it as well from the software pessimism that we've seen in the start of the year, right because they're very much levered to that build out that we've seen in
Given the demand for anything related to that, both hardware and software, seems like it could be a positive season for Cisco once again.
I guess one other question is whether Cisco is shielded from the hit we've seen from memory costs from so many of these companies that have reported so far.
Yeah, absolutely, definitely something that investors are going to be watching out for. You know, how much of their margins are they going to be able to protect as costs rise in whether that a shortage is set to continue, Is there supply chain something that is relatively insulated from that dynamic, or is it something that they're going to
have to contend with as well. So I'm sure the investors going to be looking out for any comments from the company from their CEO during the analysts call, for sure.
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