Crude futures are in the green this morning after a bullish API report yesterday. Not surprisingly, all three major index futures are in the green as well as many traders await the FOMC’s final decision.
In this article, let’s find out why five NASDAQ listed companies, Intel Corporation (NASDAQ:INTC), Netflix, Inc. (NASDAQ:NFLX), Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and CSX Corporation (NASDAQ:CSX), are in the spotlight. Let’s also use the latest 13F data to determine how elite funds are positioned among them.
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Intel Corporation (NASDAQ:INTC) is trending after John Pitzer of Credit Suisse downgraded the semiconductor maker to ‘Neutral’ from ‘Outperform’. The analyst also trimmed his price target to $35 per share from $45. Although he likes Intel’s recent Mobileye NV (NYSE:MBLY) purchase, Pitzer thinks Intel’s valuation is a bit high right now and that Intel is a ‘better company than stock’. Of the 742 elite funds we track, 58 funds owned $3.7 billion of Intel Corporation (NASDAQ:INTC) and accounted for 2.20% of the float on December 31, versus 68 funds and $4.88 billion respectively on September 30.
Netflix, Inc. (NASDAQ:NFLX) shares are in the green in the pre-market after analyst John Janedis of Jefferies upgraded the internet video streamer to ‘Hold’ from ‘Underperform’. Janedis raised his price target to $135 per share from $95, citing survey data that shows substantial growth opportunity in potentially large markets such as India and Germany. Meanwhile, the analyst believes Netflix’s original show creation strategy is working and that current competition isn’t a problem. 61 top funds were long Netflix, Inc. (NASDAQ:NFLX) at the end of the fourth quarter, up 6 funds from the previous quarter.
On the next page, we examine why Apple Inc, Microsoft Corporation, and CSX Corporation are in the spotlight.
Apple Inc. (NASDAQ:AAPL) keeps on getting love from the sell-side community. Today RBC Capital was the latest firm to give Apple the thumbs up, with analyst Amit Daryanani raising his price target to $155 per share from $140, citing Apple’s promising services segment. Daryanani believes the services segment could increase its gross margins by between 40 and 60 basis points and give Apple’s overall valuation a lift. In addition, the analyst expects Apple to benefit from the iPhone 8 cycle, and anticipated friendly overseas cash repatriation policies. Warren Buffett’s Berkshire Hathaway is a major believer in Apple Inc. (NASDAQ:AAPL), having bought substantial shares over the last few quarters.
Microsoft Corporation (NASDAQ:MSFT) is in the spotlight after the company named Reid Hoffman as one of its board of directors. Hoffman co-founded LinkedIn, the business-focused social network that Microsoft bought for over $26 billion last year. Bulls hope that the LinkedIn purchase and Hoffman’s presence in the board will help Microsoft keep its number one position in enterprise and help Microsoft accelerate its already fast-growing cloud business. 126 top funds were long Microsoft Corporation (NASDAQ:MSFT) at the end of December.
CSX Corporation (NASDAQ:CSX) received another thumbs up from the sell-side this week, this time from Atlantic Equities. Analyst Lindsay Bettiol raised his rating on the railroad operator to ‘Overweight’ from the previous ‘Neutral’ and also set a price target of $57. Shares of the company have done very well, rallying over 34% year-to-date. 53 elite funds were long CSX Corporation (NASDAQ:CSX) as of the most recent 13-F reporting period, up 10 funds from the previous quarter.