Market Updates – February 26th
Nvidia’s stock saw a near 1% uptick this morning, thanks to strong quarterly results and impressive metrics released recently. The narrative around Nvidia has shifted significantly. It’s about an expansive universal architecture for building and writing that, it turns out, is much broader than previously recognized, influenced by companies like Anthropic and OpenAI, rather than focusing solely on giants like Amazon Web Services or Microsoft Azure.
In terms of target price adjustments, JPMorgan has labeled Nvidia a “coiled spring,” increasing its projection from $250 to $265, indicating a potential 36% upside. Morgan Stanley also raised its target from $260, emphasizing that despite uncertainties regarding cash flow from major clients, the demand for computing power remains evident.
Moving on to Salesforce, its performance is being impacted by downturns in marketing and legacy apps like Tableau. However, Agentforce’s rapid growth—hitting $800 million in annual recurring revenue—might offset some of these concerns. Salesforce mentioned that it’s managed to attract customers from ServiceNow and Veeva, suggesting there’s no looming “SaaS apocalypse” as once feared.
Qnity Electronics has posted robust results that surpassed expectations for both the fourth quarter and the outlook for 2026. This DuPont spinoff, which provides various materials for semiconductor production, also declared a $500 million stock buyback. Its shares have risen by 8.5% this morning, complementing a 47% increase since the year began.
TJX Companies reported a remarkable quarter, leading Barclays to elevate its target from $172 to $183 and Bank of America from $168 to $175. I’ve recommended these stores before; shoppers are gravitating towards value, and TJ Maxx alongside HomeGoods is responding well.
In a surprising twist, Snowflake experienced a price target cut despite a significant 30% revenue growth in the fourth quarter. Barclays raised it from $192 to $204 but maintained a hold rating. CEO Sridhar Ramaswamy mentioned on “Mad Money” that they are fast-tracking product development to connect with the AI boom. The stock is up by 2% in premarket trading.
Meanwhile, shares of Tradedesk plummeted over 14% this morning due to a bleak first-quarter forecast. This ad tech firm is facing a tough crowd post its stock’s decline last summer, primarily due to stiff competition from big tech companies. The stock, which was nearly $90 last August, now starts below $22.
Wells Fargo increased its price target for Lowe’s from $280 to $290 after yesterday’s results, even though the stock dropped 5.6% due to underwhelming guidance. I suspect the lack of solid plans for tackling housing affordability, as noted in President Trump’s State of the Union, also weighed on investor sentiment, given that both Lowe’s and Home Depot depend on home sales.
Citi adjusted its price target for Toll Brothers up to $162 from $141 with a hold rating, indicating a potential 3% upside. The recent earnings report from this luxury home builder impressed me, showcasing a first-quarter profit of $210.9 million, significantly higher than the $177.7 million it made in the same period last year.
Lastly, BWX Technologies received a target raise from BTIG, up to $235 from $225 following its earnings beat. Analysts reaffirmed their buy rating, pointing out promising growth in its commercial nuclear business. As they humorously put it, BWXT is “selling shovels in a nuclear gold rush.” I spoke with CEO Rex Geveden earlier this week, and it seems BWXT might be a strong player in the nuclear sector.
