Stocks were indicated to open higher on Wednesday after a light sell-off on Tuesday. The S&P is still indicated above 2,400 and the Dow above 21,000. Now that this bull market is more eight years old, investors have the dilemma of wanting to look for new ideas while they also have shown for years that they will buy every big sell-off.
24/7 Wall St. reviews dozens of analyst research reports each day of the week to find new investing and trading ideas for our readers. Some of these analyst reports cover stocks to buy and others cover stocks to sell or to avoid.
Consensus analyst price targets are from the mean of the Thomson Reuters sell-side research service. Some additional color and commentary has been added on most of the daily analyst calls.
These were the top analyst upgrades, downgrades and other research calls from Wednesday, May 31, 2017.
Automatic Data Processing Inc. (NASDAQ: ADP) was reiterated as Buy with a target price of $118 (versus a $101.53 prior closing price) at Argus. After strong earnings at the start of May 3, the shares fell due to disappointing guidance, and Argus sees the weakness as a buying opportunity.
Broadcom Ltd. (NASDAQ: AVGO) was reiterated as a Top Pick at RBC Capital Markets, but the firm raised its price target to $260 from $250. Shares closed down 0.6% at $239.82 on Tuesday and were indicated up 1.5% at $243.50 after the call was made. Broadcom’s 52-week trading range is $142.27 to $241.60, and its consensus analyst target price is $252.26.
Vale S.A. (NYSE: VALE) was raised to Buy from Hold at HSBC. The call was overseas but the American depositary shares closed on Tuesday at $8.76, and Vale shares were indicated down 1% at $8.67 on Wednesday. Vale has a 52-week range of $3.85 to $11.70 and a consensus price target of $10.40. Moody’s also keyed in on Vale, noting that its ratings are unaffected despite Moody’s changing its outlook on Brazil to Negative from Stable.
VMware Inc. (NYSE: VMW) was raised to Outperform from Neutral with a $115 price target (versus a $96.74 close) at Robert W. Baird. RBC Capital Markets has an Outperform rating but raised its target price to $110 from $97. The stock was indicated up 2.3% at $98.99 on Wednesday, in a 52-week range of $55.12 to $97.78 and with a prior consensus target price of $95.93.
Walgreens Boots Alliance Inc. (NYSE: WBA) was reiterated as Buy with a $95 target price (versus an $80.16 close) at Jefferies. The firm wanted to review a deal or no deal strategy for Rite Aid, and the firm sees upside with or without Rite Aid ahead. If the deal is blocked, they would expect Walgreens to put through a sizable stock repurchase.
Zebra Technologies Corp. (NASDAQ: ZBRA) was downgraded to Equal Weight from Overweight with a $100 price target at Morgan Stanley. After closing up 0.8% at $106.73 on Tuesday, Zebra Tech has a 52-week range of $46.13 to $107.27 and a consensus target price of $104.63.
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Other key analyst calls were seen in the following: