Happy Sunday to everyone on The Street. 

Disgraced business leaders are having a renaissance.

On Friday morning, President Trump pardoned Nikola $NKLA ( ▼ 2.36% ) founder and convicted fraudster Trevor Milton. By the end of the day, he had also commuted Ozy Media founder Carlos Watson’s 116-month prison term.

How long til Sam Bankman-Fried is back on the streets shilling a new meme coin? Better yet, let’s get Elizabeth Holmes home. She was nothing if not a generationally talented fundraiser. Maybe she could drum up the capital to buy 23andMe $ME ( ▲ 7.22% ) …

Hot Stock, Burning Down the Avenue

CK Hutchison's Port of Call

Hong Kong's CK Hutchison Holdings $CKHUY ( ▼ 0.54% ) is on the verge of a $19 billion Panama port deal with a BlackRock $BLK ( ▲ 0.67% ) infrastructure fund.

The two were expected to sign the deal on April 2, but news broke yesterday that this will be delayed. The reason? Unclear, but what’s obvious is the sale is mired in politics.

While President Trump championed the acquisition, China's President Xi Jinping is deeply unhappy. Chinese state-owned firms have been instructed not to do any new deals with CK Hutchison, and the delay could be a signal that the company is giving way to the pressure.

Nevertheless, Barron's took the opportunity to spotlight the stock, which it argues is "too good to miss." Here’s why.

Ka-Shing Ka-Ching

Li Ka-shing, who founded CK Hutchison in 1950, is known as Asia's Superman. The 96-year-old billionaire has grown a small plastics company into a global conglomerate with over 300,000 employees. 

Li Ka-shing's son, Victor Li, is now at the helm of the company, which has interests in infrastructure, energy, telecommunications, and retail. Some analysts say its exposure to China is limited, and that it's trading at a significant discount.

If the sale goes through, the BlackRock-TiL Consortium will buy Hutchison's 90% holdings in Panama Ports Company and its 80% controlling interest in 43 other international ports.

In that case, observers are optimistic that it could put $19 billion to good use. Barron's points out it could use the cash to pay down debt and buy back stock. A London listing could also be in the cards. One Bloomberg columnist sees potential in renewables too.

Bull in a China Shop

Citigroup's $C ( ▼ 0.22% ) George Choi and Timothy Chau view the port deal as "significantly value-enhancing" and rate the stock a Buy.

The bank did recently reduce its target price from HKD 56.8 to HKD 53, after its 2024 results disappointed. But that's still 22% up on Friday's close of $5.58 on OTCMKTS — roughly $43.40 HKD.

CK Hutchison is stuck between a BlackRock and a hard place. Barron's is bullish. But a lot depends on whether it can weather China's ire.

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AutoZone Powers Through Economic Potholes

Repair, Don’t Replace

AutoZone $AZO ( ▲ 0.24% ) looks well-positioned as consumers balk at the $48,000+ price tag on new cars, as per a recent Barron's article. Amid economic uncertainty — and now fresh auto tariffs — many are choosing to repair aging vehicles instead of replacing them.

Its recent Q2 report may have looked underwhelming at first glance, with earnings slightly missing and comp sales up just 0.5%. But when adjusting for foreign exchange, same-store sales actually rose 2.9%, and international sales jumped nearly 10%.

That’s thanks to solid performance in its commercial business, which serves mechanics and auto body shops — potentially offsetting softness in discretionary DIY sales.

Distribution Muscle

Focus Partners Wealth’s portfolio manager Christopher Conway believes AutoZone’s distribution capabilities provide it an edge over others. The company’s logistics operation is widely respected, he said, and a key reason it's beating Amazon $AMZN ( ▼ 0.68% ) at its own game in this category.

Meanwhile, Parnassus Investments’ Andrew Choi believes the company has one of the best distribution models. The portfolio manager said it rivals those of distribution powerhouses like Costco $COST ( ▲ 0.14% ) and Home Depot $HD ( ▼ 0.19% ) .

It’s not facing much competition from within its niche either. Advance Auto Parts $AAP ( ▼ 0.76% ) continues to retreat in several states, giving AutoZone more breathing room to grow its footprint.

Analysts Stay Bullish

Raymond James’ $RJF ( ▲ 0.15% ) Bobby Griffin just boosted his price target on the stock to $4,000, compared to Friday’s close of $3,771. He cited margin strength and commercial momentum in his reasoning for the upgrade.

AutoZone continues to buy back shares aggressively, reducing its share count by over 3% YoY and nearly halving it over the past decade. EPS is projected to grow 13% in fiscal 2025 and over 10% in 2026.

In other words, analysts believe AutoZone’s pricing power and necessity-based products will keep drivers coming back, and keep the stock on the road.

Together With RYSE

Mr. Wonderful Lost Out on $400 Million… Will You?

The Sharks passed on Ring before it sold for $1.2 billion to Amazon. Now, there’s another smart home company catching investors’ attention.

Meet RYSE — a leader in smart shade automation with $10M+ in revenue, 200% year-over-year growth, and distribution in 127 Best Buy stores (with Home Depot launching in 2025).

RYSE’s patented technology is making waves in a booming market — and you can invest at $1.90/share before their next growth phase.

Fresh Prince of Pentair

Baird Optimistic on Water Works

Pentair $PNR ( ▼ 0.01% ) is a global pool products and water solutions company undergoing a transformation. Last year, it announced an 80/20 initiative to reduce complexity and focus on high-revenue segments.

That hasn’t translated to immediate gains. Pentair's shares have fallen nearly 14% so far this year. But Baird analyst Michael Halloran sees that as an opportunity. In a note to investors, Baird upgraded Pentair from Neutral to Outperform this week. 

Setting a price target of $114, Halloran says the company could be close to bottoming out. His target represents an upside of 31%, suggesting Pentair could blow its current price of less than $87 out of the water. 

Untapped Potential

In February, Pentair's Q4 earnings fell slightly short of analyst expectations. However, the company was upbeat and said it would do what it could to handle broader economic and geopolitical uncertainty. 

Put simply, Halloran thinks the tide is turning for Pentair. Highlighting impressive margins, better-than-average growth potential, and strong cash flow generation, the analyst argues its shifting internal focus will bear fruit. 

As such, Baird says now could be a good time for investors to pick up Pentair stock at a low cost.

Hell Pent on Success

With its upgrade, Baird joins the majority of analysts who see potential in Pentair.

According to the Wall Street Journal, 13 out of 21 analysts rate the stock a Buy. The remaining 8 have it at a Hold.

Pentair has a strong brand and is known for its innovative products, but as an investor, market bottoms can be difficult to judge. Time will tell whether we're in for a breath of fresh Pent-air or a washout.

Last Week’s Poll Results

Are you bullish or bearish on Big Pharma over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨🟨⬜️⬜️⬜️ 🐻 Bearish

And, in response, you said:

• 🐂 Bullish — “I hate big pharma, but it will sell to everyone watching those crazy ads on TV.”

• 🐻 Bearish — “The new HHS Secretary.”

Are you bullish or bearish on Coinbase (COIN) over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨🟨🟨⬜️⬜️ 🐻 Bearish

And, in response, you said:

• 🐂 Bullish — “Bullish for the market, but I wouldn't buy it!!!”

• 🐻 Bearish — “What does ‘coin’ anything make?”

Are you bullish or bearish on Duolingo (DUOL) over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨⬜️⬜️⬜️⬜️⬜️ 🐻 Bearish

• 🐂 Bullish — “This stock has a lot of upside still and adding math and science or games will make it grow like a weed.”

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