24/7 Wall St.

Stocks hit records after tax reform passed on Monday, and they were indicated higher yet again on Tuesday. There has been a rotation in recent days out of many of the technology stock leaders that had such big gains in the past year, and that was also the case on Tuesday. The trend that has continued to prevail for more than five years is for investors to buy all the big market sell-offs. Many investors are also hunting for new investing and trading ideas to generate gains and income ahead.

24/7 Wall St. reviews dozens of analyst research reports each day of the week. The goal is to find at least some of those new investing and trading ideas for investors and traders alike. Some of the daily analyst reports and research reports cover stocks to buy, while others cover stocks to sell or to avoid.

Additional color and commentary has been added on most of these daily analyst calls. The consensus analyst price targets mentioned and other valuation metrics are from the Thomson Reuters sell-side research service.

These were the top analyst upgrades, downgrades and other research calls from Tuesday, December 5, 2017.

Bandwidth Inc. (NASDAQ: BAND) has seen its quiet period end, and the $22.37 close on Monday was followed by a more than 2% gain to $22.90 on Tuesday morning. JMP Securities started coverage as Outperform with a $36 target. Canaccord Genuity started coverage as Buy with a $28 price target, and Morgan Stanley started coverage with an Overweight rating and a $28 target.

Bluebird Bio Inc. (NASDAQ: BLUE) was started as Buy and assigned a $202 price target (versus a $162.30 prior close) at Canaccord Genuity. Bluebird was down 5.1% on Monday, and it has a 52-week trading range of $60.95 to $174.65.

Delphi Technologies PLC (NYSE: DLPH-WI) was started as Buy with a $57 target at Goldman Sachs, and Morgan Stanley started coverage as Overweight with a $57 price target. This is a “when-issued stock ahead of the spin-off,” and its shares were down 2.2% at $50.82 on Monday.

DowDuPont Inc. (NYSE: DWDP) was started as Overweight at Stephens.

Expedia Inc. (NASDAQ: EXPE) was downgraded to Hold from Buy at Argus.

Madison Square Garden Co. (NYSE: MSG) was downgraded to Equal Weight from Overweight with a $245 price target (versus a $218.50 close) at Morgan Stanley. The shares were indicated down 1.6% at $215.00 on Tuesday morning.

McDonald’s Corp. (NYSE: MCD) was raised to Buy from Hold and the price target was raised to $200 from $150 (versus a $170.65 close) at Jefferies. The firm feels that the transformation of McDonald’s ownership to refranchising and use of data and technology should attract a higher multiple over time.

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Credit Suisse Identifies 15 Companies as Top Tax Reform Winners

Peabody Energy Corp. (NYSE: BTU) was reiterated as Buy and the price target was raised to $43 from $38 (versus a $33.63 close) at Jefferies.

Potash Corp. of Saskatchewan (NYSE: POT) was started as Overweight at Stephens.

Repligen Corp. (NASDAQ: RGEN) was started as Overweight with a $42 price target (versus a $34.34 close) at JPMorgan.

Robert Half International Inc. (NYSE: RHI) was downgraded to Underperform from Neutral with a $42 downside target (versus a $56.66 close) at Macquarie.

Snap Inc. (NYSE: SNAP) was raised to Overweight from Equal Weight with an $18 price target (versus a $13.57 close) at Barclays. Snap shares have a post-IPO range of $11.28 to $29.44.

Sunesis Pharmaceuticals Inc. (NASDAQ: SNSS) was downgraded to Market Perform from Outperform with a $2 price target (versus a $2.70 close) at Wells Fargo.

Ulta Beauty Inc. (NASDAQ: ULTA) was maintained as Buy with a $300 price target at Jefferies. Ulta closed at $221.64 the prior day, and Jefferies had management meetings that left it positive. The firm did admit that Ulta’s stock price is likely to remain volatile, but it also has a greater degree of conviction in its model leverage in the next one to two years.

Vale S.A. (NYSE: VALE) was raised to Outperform from Neutral with a $15 price target (versus an $11.32 close) at Credit Suisse.

Monday’s top analyst calls included Blue Apron, Broadcom, Charter Communications, CVS Health, Delphi, eBay, Rite Aid, UPS and many more.

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