Top Analyst Upgrades and Downgrades: Chipotle, IBM, Level 3, Netflix, PayPal, Salesforce and More

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Stocks were indicated higher on Tuesday as earnings season starts to spew out major Dow earnings this week. Even with all the high valuations and even with a bull market that is now seven and a half years old, investors still act as though they want to buy every market dip. Those same investors are also looking for new ideas to generate gains or income ahead.

24/7 Wall St. reviews dozens of analyst research reports each morning. The goal is to find new investing and trading ideas for our readers. Some analyst research reports cover stocks to buy, and some reports feature stocks to sell or to avoid.

These are the top analyst upgrades, downgrades and initiations seen on Tuesday morning:

Chipotle Mexican Grill Inc. (NYSE: CMG) was downgraded to Underperform from Market Perform at Raymond James, noting that last year’s woes may prove to be long-lasting or even permanent. The stock closed down 2.4% at $394.35 on Monday and was indicated down 0.7% at $391.50 early Tuesday. Its 52-week trading range is $384.77 to $720.50, and the consensus analyst price target is $433.96.

International Business Machines Corp. (NYSE: IBM) was last seen down 2.7% at $150.60 after Monday’s earnings report. IBM was maintained as Neutral and the price target was cut to $145 from $147 at Goldman Sachs. Credit Suisse maintained its Underperform rating and $110 price target, and Barclays maintained its Underweight rating but cut the price target to $135 from $140. Citigroup reiterated its Neutral rating and $160 price target.

Level 3 Communications Inc. (NASDAQ: LVLT) was started as Overweight with a $54 price target at Barclays. Shares closed at $46.09, in a 52-week range of $41.73 to $57.59. The consensus price target is $59.77.

Netflix Inc. (NASDAQ: NFLX) was last seen up 18.5% at $118.22 after Monday’s earnings beat expectations. It was reiterated as Underperform but the price target was raised to $60 at Wedbush Securities. Baird reiterated its Neutral rating but raised its target to $120 from $94 per share. Deutsche Bank maintained its Sell rating but raised its price target to $92 from $90. UBS maintained its Neutral rating but raised its target to $119 from $92, and Goldman Sachs maintained a Neutral rating but raised its target to $140 from $115.

PayPal Holdings Inc. (NASDAQ: PYPL) was started with a Buy rating and assigned a $46 price target (versus a $39.48 prior close) at Evercore ISI. Shares were indicated up 1% at $39.90 on Tuesday, with a 52-week range of $30.52 to $41.75. The consensus price target is $44.60. Inc. (NYSE: CRM) was started as Buy with a $90 price target at Rosenblatt Securities. The 52-week range is $52.60 to $84.48, and the consensus price target is $93.51.

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Other key analyst upgrades and downgrades were seen as follows: