(That is CNBC Professional’s stay protection of Tuesday’s analyst calls and Wall Avenue chatter. Please refresh each 20-Half-hour to view the newest posts.) A media big and a cybersecurity firm have been among the many shares being talked about by analysts on Tuesday. Bernstein lowered its score on Warner Bros. Discovery on the again of a disappointing second-quarter report. In the meantime, Mizuho raised its worth goal on Palo Alto Networks forward of the corporate’s upcoming earnings launch. Take a look at the newest calls and chatter beneath. All instances ET. 5:50 a.m.: UBS says shares of this water pure-play can bounce virtually 30% Traders could also be overlooking progress alternatives in Xylem , in response to UBS. Analyst Damian Karas initiated protection of the water inventory with a purchase score. Karas’ $165 worth goal suggests shares can rally 29.4% from Monday’s shut. “We view XYL because the main pure-play water firm,” Karas wrote in a observe to purchasers. It has “MSD+ progress profile that’s much less cyclical than friends and a ~100bps/yr margin alternative.” Karas famous the inventory has solely priced in a compound annual gross sales progress price of two.7% by 2028, which is round according to the historic price. However UBS expects that progress clip to be close to 6%, which means it could possibly be far larger than merchants are at present anticipating. The agency additionally stated traders must be readying for a multi-decade progress cycle, because the enterprise feels boosts from urbanization and authorities help for upgraded infrastructure. In the meantime, the analyst additionally stated the corporate is “working from a place of power” after its adjoining growth by the $7.5 billion acquisition of Evoqua. Xylem shares have added 11.5% this yr. XYL YTD mountain XYL yr thus far — Alex Harring 5:47 a.m.: Bernstein downgrades Warner Bros. Discovery, citing second-quarter earnings Bernstein moved to the sidelines on Warner Bros. Discovery after what the Wall Avenue agency deemed an “ugly” quarter. Analyst Laurent Yoon downgraded the media inventory to market carry out from outperform and shaved $2 off his worth goal to $8. Nonetheless, that new goal implies 19.2% upside from Monday’s shut. Yoon’s downgrade comes after the leisure firm missed quarterly expectations on adjusted EBITDA and income in its second-quarter earnings report printed final week. Shares touched their decrease level because the WarnerMedia-Discovery merger in 2022 within the wake of the discharge, the analyst famous. “It sounds unhealthy and it’s,” Yoon wrote to purchasers in a Tuesday observe. “Whereas there are some nuances, similar to comps, the market response is reflective of the little or no persistence traders have for WBD given the continuing deterioration.” Yoon particularly pointed to the truth that income fell by 6% and EBITDA by 16% within the quarter in contrast with the identical interval one yr in the past. Free money movement tumbled by a whopping 43% when evaluating the 2 time frames. Including to uncertainty is the truth that the NBA selected different media firms to ink a rights take care of, ending a decades-long partnership with Warner Bros. Discovery’s Turner Sports activities. Warner Bros. Discovery is now suing the NBA. Warner Bros. Discovery shares shed 0.8% earlier than the bell on Tuesday. The inventory has tumbled round 41% in 2024. Disclosure: Comcast’s NBCUniversal, CNBC’s guardian, was one firm that received agreements for a package deal of NBA video games. — Alex Harring 5:47 a.m.: Mizuho raises worth goal on Palo Alto Networks Traders ought to contemplate scooping up shares of Palo Alto Networks forward of earnings. Analyst Gregg Moskowitz raised his worth goal on the cybersecurity inventory to $380 from $350, sustaining his outperform score. The brand new forecast implies upside of almost 15%. “Our checks point out an uptick in PANW demand for the primary time in a number of quarters. Extra particularly, massive deal exercise has been stronger, prospects have been consolidating extra purchases with PANW, and demand has sounded more healthy throughout each firewalls and subscriptions,” Moskowitz wrote in a observe to purchasers. “As well as, we imagine current management modifications are enhancing relations with some notable channel companions,” the analyst added. Palo Alto, which is because of report earnings Aug. 19, is up greater than 12% for the yr. Over the previous month, nevertheless, shares are down greater than 1%. PANW YTD mountain PANW yr thus far — Fred Imbert
