Top Analyst Upgrades and Downgrades: Borderfree, Genworth, Groupon, Nationstar, SolarCity, Zulily and More
Stocks were indicated higher on Wednesday morning. The markets are still challenging all-time highs and investors have literally bought every single pullback for almost four years. 24/7 Wall St. reviews dozens of analyst research reports each day to find new trading and investment ideas for its readers. Some of these analyst reports cover stocks to buy, while others cover stocks to sell or avoid.
These are Wednesday’s top analyst upgrades, downgrades and initiations.
Borderfree Inc. (NASDAQ: BRDR) was downgraded to Neutral from Outperform at Credit Suisse, and William Blair downgraded it to Market Perform from Outperform. Canaccord Genuity downgraded it to Hold from Buy.
Genworth Financial Inc. (NYSE: GNW) was maintained as Buy at Jefferies, and the firm raised its price target to $12 from $10 (versus a $8.64 close) in the call. UBS has downgraded Genworth to Neutral from Buy, a day after Morgan Stanley downgraded it to Underweight.
Groupon Inc. (NASDAQ: GRPN) was maintained as Neutral at Janney Capital Markets after earnings, but the firm also maintained its $9 fair value target (versus a $6.84 close) based on a multiple of 15 times its 2016 EBITDA estimate. Shares are down almost 3% at $6.65 after earnings and after revenue was guided lower. Wells Fargo maintained its Outperform rating but lowered its fair value range to $9 to $10 from $10 to $11 after cutting earnings expectations.
Nationstar Mortgage Holdings Inc. (NYSE: NSM) saw its shares fall 25% to $19.51 after an earnings miss. Now FBR Capital Markets has downgraded the mortgage servicer to Underperform from Market Perform and slashed the price target to $15 from $25. Oppenheimer maintained its Outperform rating but cut its price target to $24 from $32, with a note that Nationstar is worth more than $19.50 even after a weak start to the year. Wells Fargo maintained its Outperform rating but lowered the fair value target range to $24.00 to $26.00 from a $32.00 to $34.00 prior range.
SolarCity Corp. (NASDAQ: SCTY) was reiterated as Outperform and the price target was raised to $99 from $97 at Credit Suisse, based on new metrics highlighting value creation and the recent action offering a buying opportunity after earnings exceeded the firm’s expectations.
Zulily Inc. (NASDAQ: ZU) was downgraded to Market Perform from Outperform at Oppenheimer. Stifel downgraded it to Hold from Buy. These were on the heels of another poor earnings report.
Other key analyst upgrades, downgrades and initiations from Wednesday were as follows: