Stocks were indicated lower on Wednesday, partly dragged down by a disappointing Apple earnings report. It still seems that investors have returned to a mentality of buying the pullbacks rather than selling rallies. Keep in mind that the S&P 500 is now valued at about 17.8 times its forward 12-month price-to-earnings (P/E) ratio after peaking at 17.9 last week.
24/7 Wall St. reviews dozens of analyst research reports each morning of the week to find new investing and trading ideas. Some of these analyst reports cover stocks to buy, while others cover stocks to sell or avoid.
These are top analyst upgrades, downgrades and initiations seen on Wednesday morning:
Apple Inc. (NASDAQ: AAPL) was last seen trading down after the first sales decline in a decade and as guidance was even worse than expected. Apple was maintained as Buy at Merrill Lynch, but the price objective was cut to $120 from $125. Barclays kept its Overweight rating, but cut the target to $121 from $131. Nomura maintained its Buy rating but cut its target to $120 from $135. Oppenheimer cut the rating to Perform from Outperform. Canaccord Genuity maintained its Buy rating but cut the target to $130 from $146, and RBC maintained its Outperform rating but cut the target to $120 from $130.
Chipotle Mexican Grill Inc. (NYSE: CMG) was last seen trading down 5% at $424.00 after sales tanked enough that it had its first loss. Most analysts kept their ratings but lowered their targets: Barclays to $430 from $450 (with Equal Weight rating), Cowen to $400 (with Market Perform), JPMorgan to $485 from $510 (with Overweight), UBS to $450 from $460 (with Neutral). Deutsche Bank has a Sell rating but cut its target to $360 from $400.
(NASDAQ: EBAY) was last seen up 1.2% at $24.80 after earnings surprisingly beat expectations despite slower growth. Canaccord Genuity has a Hold rating and raised its target to $26 from $26. RBC has it at Sector Perform and cut its target to $28 from $29. JPMorgan has a Neutral rating and cut the target to $27 from $28, while Jefferies kept its Hold rating while raising its target to $27 from $25.
JetBlue Airways Corp. (NASDAQ: JBL) was raised to Outperform from Market Perform at Cowen. Credit Suisse maintained its Neutral rating and lowered its target to $19 from $21. Evercore ISI has a Buy rating and raised JetBlue’s target to $28 from $25. Shares closed at $20.33, have a consensus analyst target of $25.96 and have a 52-week trading range of $16.26 to $27.36.
Kraft Heinz Co. (NASDAQ: KHC) was started as Buy with a $91 price target (versus a $78.70 prior close) at Argus. The consensus analyst target is $90.29, and the 52-week range is $61.42 to $81.20.
Twitter Inc. (NYSE: TWTR) was last seen trading down 15% at $15.10 after earnings missed the mark. It was downgraded to Neutral from Overweight and the price target was cut to $18 from $26 (versus a $17.75 close) at JPMorgan. UBS kept its Buy rating but cut the target to $24 from $30. Jefferies maintained a Buy rating on Twitter but cut its target to $32 from $35. Nomura has a Neutral rating but cut the target to $16 from $19. Twitter has a 52-week range of $13.91 to $41.09.
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Other key analyst upgrades and downgrades were seen in the following: