HAPPY SUNDAY TO THE STREET.
Sen. Josh Hawley (R-MO) wants to hand out $600 tariff rebate checks.
How would you spend it? Throw it in $SPY and forget about it? Buy two shares of Apple $AAPL ( ▼ 0.3% ) and a grande latte? Roll the dice on a biotech ticker you can’t pronounce?
I know what I’m going to do. Drop $600 on a Polymarket bet that the bill won’t ever pass. Real galaxy brain stuff.
— Brooks & Cas
RBC PRESCRIBES A RALLY FOR HOLX
Turning the Corner
RBC Capital Markets $RY ( ▼ 0.02% ) has turned bullish on Hologic $HOLX ( ▼ 0.8% ), upgrading the medtech company to Outperform and lifting its price target to $87, nearly 28% higher than Friday’s close. While the stock is down more than 5% year-to-date, analyst Conor McNamara sees a path to recovery.
RBC expects Hologic’s 2026 revenue guidance to beat current expectations, helping restore investor confidence and setting the stage for valuation growth. McNamara believes the market has underestimated the company’s recent performance, especially in light of its latest M&A activity.
According to the analyst, Hologic could return to a pattern of steady, mid-single-digit revenue growth. That would be a key signal to investors who’ve been wary of recent setbacks.
Fuel for Growth
Two recent acquisitions could support that narrative. McNamara says these deals could drive organic revenue gains beginning in 2026. He also highlighted two of the company’s product lines — Panther Fusion and Genius Digital Diagnostics — as meaningful growth contributors starting late next year.
Beyond that, Hologic maintains a clean balance sheet and operates across several healthcare verticals, positioning it well to continue acquiring growth. RBC believes the company has enough flexibility to navigate any lingering headwinds.
That includes international policy risk and declining demand in certain diagnostic categories. But McNamara suggests these are manageable and that the company’s broader strategy could offset them over time.
Challenges Easing
McNamara believes that the worst is now behind, and the company is all set to turn the corner. Hologic’s China sales slumped in 2025, but management believes they’ve bottomed, and growth is now on the cards.
Likewise, a $100 million drop in breast health equipment revenue isn't expected to repeat. That, combined with easing pressure from policy shifts impacting HIV testing in Africa, sets the stage for a more stable 2026.
RBC thinks that’s the kind of setup that could spark renewed investor interest and potentially, a higher multiple.
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PEDAL TO THE METAL
Goldman Calls the Bottom
Peloton $PTON ( ▼ 0.82% ) just got a fresh endorsement from Wall Street. Goldman Sachs upgraded the connected fitness company to Buy and raised its price target to $11.50. That implies a roughly 47% upside from Friday’s close.
Analyst Eric Sheridan says new leadership, better cost controls, and a path back to growth make Peloton an overlooked rebound story.
The note follows strong Q4 results that beat on both the top and bottom line. The company even posted a surprise profit, easing investor concerns about its cash burn. Peloton also announced a new $100 million cost-cutting initiative, which includes a 6% staff reduction and continued restructuring efforts.
New Strategy, New Cycle
Sheridan says management is executing a reset. Peloton is focusing on monetization, capital efficiency, and positioning itself for sustained free cash flow. He expects total revenue growth to return by mid-2026 and compound from there. That could kick off what he calls a “solid revision cycle,” where rising forecasts drive further upside.
The company is also rethinking how it sells its fitness products, pushing further into digital content, app-based experiences, and new market segments. If it can reengage its subscriber base, Goldman believes Peloton could be back on the growth track within the next 12 to 18 months.
From Crash to Comeback?
Shares of Peloton are still down about 11% in 2025 after a steep post-pandemic decline. But Goldman thinks the worst may be behind it. Sheridan says the company is finally aligning its cost structure with demand and building a leaner, more focused business.
The pandemic boom is long gone. But Peloton’s next chapter might not require one.
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QUALCOMM’S QUIET GAME PLAN
Patience Could Pay Off
Qualcomm $QCOM ( ▲ 0.67% ) has been left out of the AI-fueled semiconductor rally this year, with shares down about 4% in 2025 while the VanEck Semiconductor ETF has surged nearly 20%. But some analysts say the market is underestimating the chipmaker’s long-term pivot — and paying a solid dividend in the meantime.
Bernstein’s Stacy Rasgon calls the stock a Buy with a $185 price target, implying about 25% upside. Bank of America’s Tal Liani is even more bullish at $200, roughly 36% above Friday’s close.
Both point to Qualcomm expanding beyond smartphones and its waning modem business with Apple into data centers and AI hardware, including neural processing units.
Diversifying Beyond Handsets
Snapdragon processors still power Samsung’s flagship Galaxy S devices, but Qualcomm is pushing harder into growth markets. The company’s chips are used in Meta’s smart glasses, and it’s developing a data center strategy through deals like its planned purchase of Alphawave IP Group and a partnership with Saudi AI firm Humain.
CEO Cristiano Amon says Qualcomm is in advanced talks with a major hyperscaler that could begin generating revenue in fiscal 2028. Analysts agree it’s early days, but see the expansion as a logical step in the company’s diversification strategy.
Getting Paid to Wait
For income investors, the wait comes with a 2.4% dividend yield and a 20-year track record of steady payouts. Qualcomm returned $3.8 billion to shareholders last quarter through dividends and buybacks. Long-term holders who reinvested dividends over the past two decades have seen total returns of more than 480%.
Analysts say the AI payoff is still years away — but with cash in hand and a clear plan, Qualcomm could be a sleeper in the next leg of the chip cycle.
LAST WEEK’S POLL RESULTS
Are you bullish or bearish on Deere & Co $DE ( ▲ 0.48% ) over the next 12 months?
▇▇▇▇▇▇ 🐂 Bullish
▇▇▇▇▇▇ 🐻 Bearish
And, in response, you said:
🐂 Bullish — “Leader in farm equipment, and leader in electronics to make farming easier and more productive.”
🐻 Bearish — “Too much uncertainty in the farm sector right now.”
Are you bullish or bearish on Generac $GNRC ( ▼ 0.33% ) over the next 12 months?
▇▇▇▇▇▇ 🐂 Bullish
▇▇▇▇▇▇ 🐻 Bearish
And, in response, you said:
🐂 Bullish —
“Gotta have power or the tech strategy won't work!”
“Don't discount all the weather-related issues as well that affect all businesses and property owners.”
Are you bullish or bearish on UnitedHealth Group $UNH ( ▲ 1.47% ) over the next 12 months?
▇▇▇▇▇▇ 🐂 Bullish
▇▇▇▇▇▇ 🐻 Bearish
🐂 Bullish — “The strongest company in an industry that will persist and grow despite short-term problems.”
🐻 Bearish — “Turn off the lights... they’re done. Medical prices are going down under Trump... goodbye!”
