Updates on Four Portfolio Holdings
Let's check on news for Apple, Builders FirstSource, Axon and Eaton.
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As we start this potentially volatile week, let’s catch up on some portfolio-related items making the rounds:
Builders FirstSource, Eaton 'Buy' Ratings
Truist upgraded Builders FirstSource BLDR to "Buy" from "Hold" with a price target of $220, up from $165. We both seem to agree that recent falling interest rates should spark single-family housing activity in 2025.
Also, Citi initiated coverage on the shares of Eaton ETN with a "Buy" rating and a $348 price target. Here, too, the call being made is very similar to what led us to add ETN shares to our holdings:
Given "robust" data center power demand growth and Eaton's ability to benefit from its diversified power management portfolio as well as durable secular tailwinds across much of its portfolio, the company is well positioned to deliver multi-year mid-to-high single-digit organic growth.
iPhone Orders Weak, but Apple Intelligence Looms
With preorders for Apple’s AAPL new models kicking off late last week, reports are starting to trickle out about weakness. One from noted Apple analyst Ming-Chi Kuo says the demand has been “lower than expected,” Because the first wave of Apple Intelligence features isn’t expected to be rolled out until October, when Apple releases iOS 18.1, we’re not bowled over by a weak start for the models.
Today Apple is making available iOS 18.0. and we’re also hearing rumblings of an October event geared toward new Macs and a few other things that could mean a meatier look at Apple Intelligence. Another factor could be folks are parsing the various trade-in offers from Apple and various mobile carriers like AT&T T and T-Mobile TMUS, which are hefty. We’ll be patient with Apple shares, and if they get below $210 that may bring an opportunity for us to nab some additional shares.
Axon and Drone Demand
While there was no Axon- AXON related news this weekend, a second assignation attempt on former president and current candidate, Donald Trump, may renew calls for drone usage by the Secret Service and others. While still a relatively small part of Axon’s revenue stream, that offering serves the same public safety customer base as its Taser and body camera ones and is another driver for the higher margin cloud business. Last week, we bumped up our AXON price target to $415 from $385.
The Pro Portfolio is long ETN, AXON, AAPL, BLDR.
