(This is CNBC Pro's live coverage of Tuesday's analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) A chipmaker and a beleaguered cybersecurity stock were among the stocks being talked about by analysts on Tuesday.
Morgan Stanley named Taiwan Semiconductor a top pick. Meanwhile, Piper Sandler upgraded CrowdStrike to overweight from neutral. Check out the latest calls and chatter below.
All times ET. 5:49 a.m.
: Piper Sandler upgrades CrowdStrike, says investors should buy the dip Piper Sandler thinks CrowdStrike can make a strong rebound from the crises surrounding the global tech outage — and that investors should take advantage of the event. Analyst Rob Owens upgraded the global cybersecurity company to overweight from neutral and lowered his price target by $20 to $290, which implies 30.6% upside.
Although he lowered his target due to estimate reductions on the stock, he thinks shares are now trading at a compelling risk/reward level. CrowdStrike shares have plunged 43% over the past month since the company issued a software update, which affected millions of computers running Microsoft's Windows operating system, leading to global outages across different industries. Delta Air Lines is seeking damages from CrowdStrike and Microsoft after the outage.
CRWD 1M mountain CRWD 1-mo chart Owens thinks CrowdStrike "did a good job" in handling the global outage and preserving customer relationships. Its strong cash flow generation, and insurance for these kinds of incidents, should help preserve costs tied to the Delta lawsuit, Owens said. "Even though the near-term news cycle will likely revolve around litigations / settlements, congressional testimony and ensuing numbers cuts ahead of and on F'2Q earnings, the ramifications of the event will likely be more-so short-lived and at negligible cost, in our view," Owens said in a Tuesday note.
"With shares down sharply for the month, we believe investors should opportunistically build positions at current levels. " — Pia Singh 5:49 a.m.
: Morgan Stanley names Taiwan Semiconductor a top pick Investors should consider buying the recent dip in Taiwan Semiconductor shares, according to Morgan Stanley. The bank named the chipmaker a top pick, maintaining an overweight rating on the stock. Its price target of 1,200 Taiwanese dollars implies upside of 36.
4%. TSM mountain 2024-06-28 TSM in Q3 Taiwan Semiconductor has been under pressure this quarter, as investors pare back exposure to tech winners after a strong start to the year. Quarter to date, the U.
S.-listed stock is down 14.9%.
"We like TSMC's quality and defensive nature during an elongated semi downcycle. Price hike confirmation and ongoing AI capex strength should be key catalysts," analyst Charlie Chan wrote. "Following the sector's recent broad selloff, we think TSMC is attractive again at 16x our 2025 EPS estimate with higher quality company operations and financial outlook," Chan added.
— Fred Imbert.
