Thursday’s First Movers: PLTR Hits 11-Month Highs, NXPI Downgrade, PEP Earnings

really the story is to the downside. And the pressure is on morning. Firstoves after the open. I'm joined by Diane King Hall looking at some of the names. And we're looking saw Dan Ives made his picks for 2027. That was in there. loves Palantir. Ohloves it. He loves it for 2027. I saw that was in there. I just thI'd throw that in there. Okay. Go, Diana. We love Dan Ives too right. So let's talk Palantir. Those shares are higher here in early tradi This comes offack of a more bullish sentiment. This is triggered by Goldmanhs was turnllish on Palantir after underperformance. So far this yeary've upgraded Palantir to a buy from neutral setting a $230 price target. So that implies double digit upside yesterday's closing levels, about 18% from yesterday's closing level keep in m coming into today, it was only up single digits year to date on a year over year basis, just has underperformed the S&P 500 and underperformed sector as well. Goldman seeing the potential for a stretch of outperformancee is that its businesses, itsverty stages of putting AI to work with their own data. And so they think Palantir has an given that they use forward deployed engineers who work closely with custome who solvefic business problems here. So that's part of the thesis here, unders their bullish sentiment. Now on this one, they believe that Palantir has an advantage. The task for investors will be whether Palantir can serve more customers without costs, rising as quickly as expanding their wheelhouse. The next wave of growth is coming from sovereign AI. That's a big part of how Palantirnow started, right? The government contracts. That was its bread andr for a long time. And then they started increasing in the commercial space here, custom ice potential there, businesses wanting AI tools tailore to their operations there. So somen industry specific products. Now obvi Wall Street likes with shag even more as we speak, rallying more than 4.5% right now. Nicole. All right. Good move there for Palan Let's also talk NXP semi and some downgrades there. Yeah in XP right now those shares down about 2.5% in regard to some it follows some reducing expectations for one. This name has been an underperformer. Whether we're talking about year to date or year over year and shares continuing some of their weakness. This comes after Citigroup downgrades it to a neutral from a buy. So they were bullish.ut now they're moving to the sidelines. They've loweredheir price target significantly down to from 370 here. So theyo see still some potential for room to run. But the reason cities take atep back. They think that earnings estimates for NXP will py improve less than those of its peers. So it's kind of a peer to peer equation here. The bank sees that the recovery in analog chips is ady u know, there's some worries in particular about auto exposure. They point out that more than 50% ofxport revenue com from automotive, where demand is still subdued. We've been covering automotive and the challenging landscape. It's been there for demand. And part of that has to do with pricing. Data centers account for just a small portion of sales for XP, less than 10% there. So it has the lowest exposure to strength there from its peers for what city looks like. So they've lowered their earnings lowered their 2027 earnings estimates to 1630 a share. That's down from their expectation of 1661 and its2028e sharply down to 1 from That's reflecting the weakness that they expect in auto and some industrial assumptions here. Nicole. Yeah, that's a big move to0 from 370. I mean, it's a 228 and still above where it curre is, as you d, thee being more selective in this sector.iti is. So that doesn't bode well for next year with the city. N Right. So we'll that aside. How about PepsiCo. So those shares ling upt now. It's going to take a lot more to move the needleere. On PepsiCo given its underperformance so far this year. Now it dt expectations oh the top and bottom line in this most recent quarter. Adjusted earnings per share coming in at 2.3 for revenue, topping 25.2 billion. Organic revenue grew 3.1%, but there is still some slowness expected in terms the outlook. They're expecting full year revenue growth of about 6%. That is theigh end of their previous range. So that's good. But core earnings now projected at two and half to 3.5%. So that's down from the low end of their range. So higher sales they're expecting but lower profit growth. And keep in mey had been doing some playing around with cutting some costs to move product here. Snacks has been a challenging I mean snacks is more predominant portion of its business. That had been a challenge as consumer tastes sh We did see some gro in this most recent quarter, and this probably has to do with the shifting habits of Americans is like, for instance, its protein chips, its new naked Doritos with less additives. They're leaning into smaller portions. As you see, the increasing adoption of GLP one that's affected the snack industry. Yeah. Right around the 52 week lows hit a 52 week 4 change. So a tough y one year to date