Wall Street Ups Price Targets on 3 Pro Holdings as Microsoft Gets an Upgrade
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While we wait for S&P’s Flash September PMI data, Iran to address the U.N., and any subsequent comments from the White House, let’s review what Wall Street is saying so far about some of the Pro Portfolio’s holdings.
Microsoft
Microsoft (MSFT) shares were upgraded at Stifel to Buy from Hold with a $575 price target as the firm sees Microsoft continuing to deliver mid-to-upper-teens revenue growth while demonstrating operating expense efficiency.
During yesterday’s Portfolio Office Hours session, a question was asked about our $500 price target and our response was we are leaning toward moving it higher. The degree of that increase will hinge on what Microsoft has to say about converting its cloud backlog into booked revenue and segment margins as it balances that revenue against capacity additions.
Apple and the iPhone
BofA finds that Apple (AAPL) iPhone lead times are stable to slightly extending, calling it “incrementally positive.” What makes the comparison to last year challenging is Apple only unveiling its new Pro models this year.
UBS Evidence Lab data suggest iPhone 18 Pro/Pro Max demand may be improving at the margin, with average wait times rising about three and two days, respectively, week over week, with year-over-year declines narrowing to about one day.
The bigger tell to us will be consumer and market reception to the iPhone Duo. Pre-orders begin on October 16 with the new foldable device available starting October 23. Buzz has been building for the Duo despite the higher price tag, and that could make it the next status symbol product.
Ahead of Apple’s September 2026 quarterly results, we’ll look to revisit our AAPL price target once we’ve digested September revenue reports from Taiwan Semi (TSM) and Apple supplier Foxconn.
American Express
Truist raised its price target on American Express (AXP) to $375 from $370, reiterating its Buy rating.
We received a question on AXP shares yesterday given their pronounced fall since early August, although it is far less than the decline in Mastercard (MA) and Visa (V). We view the decline as a bit of a head scratcher given the difference in Amex’s business model, one that derives a significant piece of profits from its membership fee revenue stream. Paired with AXP shares now landing in oversold territory, we see the risk-to-reward trade-off in the shares skewing favorable at current levels.
While we look to see the fallout from today’s events listed above, we will place AXP shares on our Portfolio shopping list.
Meta
The Information reports Meta’s (META) Muse surpassed 500,000 total users, including 250,000 daily active users, with more than 2 million prompts submitted in its first week. Let’s remember that Muse is free to download, and the conversion metric to paid subscriptions is far more meaningful.
Ahead of Meta Connect later today, Cantor Fitzgerald raised its price target on Meta to $860 from $680, and reiterated its Overweight rating. KeyBanc placed an even higher new price target on Meta shares, $900, up from the prior $780.
For some context, within a month of launching, SpaceX’s (SPCX) Grok Bot AI agent reached over 400,000 weekly users. Data from Bloomberg finds that by September 14, the Grok Bot hit 418,000 users, up 24% week over week. We point this out as a reminder about the competitive landscape, and how it is likely to tighten further as other AI companies enter the personal AI agent space.
Micron
Citi boosted its price target on EPS All-Stars constituent Micron (MU) to $1,300 from $1,150 as it lifted its August and November quarter estimates to reflect better than expected DRAM pricing. Citi also notes a potential catalyst for MU shares in the upcoming SEMICON West presentation as chip equipment companies talk about DRAM shortages.
We see that same event, which runs from October 13-15, as a likely catalyst for our position in Applied Materials (AMAT). We’ll say the same about Micron’s August-quarter results, which will be released next week on September 30.
More Pro Portfolio: (updated Sept. 21)
- Buying More Shares of This Holding Off the Discount Rack
- 26 Signals Across 9 Portfolio Themes
- Weekly Roundup: September Is Living Up to Its Reputation
At the time of publication, TheStreet Pro Portoflio was long AAPL, AMAT, AXP, META, MSFT, and MU.
