Wells Fargo’s preferred selections for the second quarter of 2024:
Overweight Tactical Ideas:
1. Amazon (AMZN): Wells Fargo is bullish on Amazon with a price target of $211. They anticipate margin expansion due to fulfillment fee restructuring, which could potentially add $5.2 billion in annualized operating income for North American retail.
2. Starbucks (SBUX): With around 15% upside, Wells Fargo foresees a recovery for Starbucks in the second half of the year, driven by menu innovation.
3. Insmed (INSM): Wells Fargo has set a price target of $55 for Insmed, implying a 100% upside potential. They are optimistic about the possibility of Insmed doubling in value on positive results from its brensocatib drug trials for bronchiectasis.
4. Citigroup (C) and Devon Energy (DVN): Wells Fargo also expresses bullish sentiments towards Citigroup and Devon Energy.
Underweight for the Quarter:
1. Tesla (TSLA): Wells Fargo is bearish on Tesla, setting a price target of $125, which implies a 29% drop. They cite concerns about slowing growth and demand as reasons for their underweight rating on Tesla.
