Updates and Thoughts on 7 Holdings as We Upgrade a Financial Position

As we share with you an updated table of Pro Portfolio metrics, including the latest consensus EPS expectations, relative strength index (RSI) figures, and others, we are also upgrading Morgan Stanley (MS) to a One rating from Two.

In recent weeks, MS shares have pulled back from ~$190 to a low near $165 before rebounding to $175. Even after that recovery, however, more than 17% upside remains to our $205 price target. Remember, though, that should we see signs of the IPO market and M&A activity heat up, we may need to revise that target higher. Between IPOs expected for SpaceX, OpenAI, Anthropic, Databricks, and others, 2026 could be a very strong year for investment banking activity and fees.

In addition to that upgrade, we are also reviewing our ratings for Dutch Bros (BROS) and Broadcom (AVGO) . With that in mind, we are revising our pickup points for those two stocks to $49 and $330, respectively. For now, our AVGO panic point remains $290, but our $52 one for BROS is under review as we contemplate nibbling a bit further on those shares.

We are also resetting some panic points following trades we’ve made over the last few weeks:

Axon Enterprise (AXON) — Following our February 3 and 10 buys at an average price near $444, we are resetting our panic point to $400. In keeping with our One rating, we are resetting our pickup point to $435, however, we would remind you that Axon reports its quarterly results after the market close on Tuesday (February 24).

Microsoft (MSFT) — Following our February 10 buy near $420, we are resetting our panic point to $385 and our pickup point to $410. While MSFT shares are below that $410 level, we think that companies like Microsoft would need to show further sequential gains in their backlog, RPOs, and similar metrics. With Microsoft, it also means adding cloud capacity and starting to see those margins rebound. This could take some time, hence our pickup point, but we will also be interested in quarterly results and guidance from Salesforce (CRM) and Snowflake (SNOW) on Wednesday (February 25).

Palantir (PLTR) — Following our latest buy of Palantir shares last week, just over $140, we are resetting our panic point to $125. Given our One rating on PLTR shares, our pickup point is at or near the current price, which explains the reset to $135.

Let's Talk About ServiceNow... and CIBR

Now, let’s talk about ServiceNow (NOW) , which is still a One-rated stock. Here’s the thing, we all know NOW shares have been battered and based on their updated RSI level of 33.79, they are no longer oversold. But as noted above, Salesforce and Snowflake report on Wednesday. And as we discussed in Friday’s Weekly Roundup, we have a few investor conferences this week that feature technology companies.

With those ahead of us, we are not going to make any changes to our panic point, pickup point, or rating for ServiceNow shares at least until we get through those events. If they confirm that AI is not eating all software companies, which has been the fearful narrative weighing harshly on software stocks, even if it isn’t deserved, that may be a catalyst for us to get off the bench with NOW shares. However, if the learnings are not supportive of ServiceNow, even though CEO Bill McDermott is about to pick up $3 million in stock later this week, we may have a tough choice ahead of us. Depending on which of the binary outcomes we get, we’ll adjust our panic point, pickup point, and rating for NOW as warranted.

Finally, when it comes to our position in First Trust Nasdaq Cybersecurity ETF (CIBR) , we continue to see the dark side of AI, including its adoption by bad actors, increasing the array and velocity of cyberattacks. We have some room to add to this position, and as we work toward that we will revisit the corresponding panic and pick up points.

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At the time of publication, TheStreet Pro Portfolio was long MS, BROS, AVGO, AXON, MSFT, PLTR, NOW and CIBR.