Gotrade News - Wall Street analysts reset price targets across three S&P 500 names last week, with mixed conclusions. Morgan Stanley, Roth Capital, and Loop Capital issued updates touching utilities, retail, and payments.
The revisions reflect uneven Q1 results and shifting sector outlooks heading into summer. Investors are weighing dividend strength against slowing earnings momentum in several large-cap stocks.
Key Takeaways
- Morgan Stanley trimmed Edison International (EIX) target to $64 from $70 while keeping Underweight.
- Roth Capital lifted Target (TGT) target to $114 from $88, warning Q1 may be a peak quarter.
- Loop Capital initiated American Express (AXP) with Buy and a $389 target, naming it a top pick.
Utility and Retail Resets
According to Insider Monkey, Morgan Stanley cut Edison International (EIX) to $64 from $70 on May 21. The firm maintained an Underweight rating despite reaffirmed 2026 guidance.
CEO Pedro Pizarro reported Q1 core EPS of $1.42 and held long-term core EPS growth guidance at 5% to 7%. Southern California Edison completed roughly 93% of planned hardening across high fire-risk distribution areas.
Per Insider Monkey, the utility extended over 1,500 offers totaling above $500 million to community members affected by the Eaton fire. Edison currently trades with a dividend yield near 4.93%.
The Underweight stance signals continued caution despite operational progress on wildfire risk mitigation. Morgan Stanley sees regulatory and litigation overhang weighing on near-term multiple expansion at the California utility.
As reported by Insider Monkey, Roth Capital raised Target (TGT) to $114 from $88 on May 22. Argus also lifted its target to $150 from $145 and kept a Buy rating.
Target delivered a strong Q1 print and raised FY2026 guidance, prompting the upward revisions. Roth cautioned that SG&A is growing faster than the upside in revenue at the discount retailer.
According to Insider Monkey, Roth flagged Q1 as a possible Goldilocks quarter with comparisons toughening into the back half. Target has now logged 54 consecutive years of dividend increases.
Payments Sector Top Pick
Per Insider Monkey, Loop Capital initiated coverage of American Express (AXP) on May 24. The firm assigned a Buy rating with a $389 price target.
Loop named American Express a top pick, citing a stable to improving outlook for the broader financial sector. Analysts said AI job-loss concerns have pressured the valuation multiple, creating an attractive entry point.
According to Insider Monkey, American Express and Fanatics announced a strategic partnership on May 20. AXP will become Official Payments Partner at select Fanatics locations worldwide.
The companies plan to launch a Fanatics American Express Card later in 2026, expanding the issuer's lifestyle co-brand portfolio. American Express posts a five-year dividend growth rate of 14.67%.
The three updates together highlight how Q1 prints are reshaping sell-side conviction across defensive, consumer, and payments names. Dividend records and capital returns continue to anchor analyst calls even as targets diverge.
Investors watching the sweep should weigh ratings direction alongside the supporting fundamentals beneath each call. Buy-side positioning into June will likely test whether Q1 strength carries into the second-half print.
Sources
- Morgan Stanley Trims Edison International (EIX) Price Forecast After April Utility Review (Insider Monkey)
- Roth Capital Lifts Target (TGT) Price Target but Warns Q1 May Have Been a Goldilocks Quarter (Insider Monkey)
- Loop Capital Initiates American Express (AXP) with Buy Rating, Names it Top Pick (Insider Monkey)
