Stocks were indicated lower on Monday, ahead of this week’s Federal Open Market Committee (FOMC) meeting and Brexit vote. Investors have shown frequently that they are more than willing to buy the stock market on dips. 24/7 Wall St. reviews dozens of analyst research reports each day of the week. Our aim is to dig up new investing and trading ideas for our readers. Some analyst reports cover stocks to buy, and other reports feature stocks to sell or avoid.
Last week, 24/7 Wall St. warned that the S&P 500 was trading at 18 times expected 2016 per-share earnings, a level not seen since September of 2009. That is of course with commodities/materials and energy earnings being nonexistent, but it is a serious premium for market valuations. Now we have a note from Credit Suisse’s equity strategy team that says S&P 500 valuations are approaching troublesome territory.
These are the top analyst upgrades, downgrades and initiations seen on Monday morning:
Advanced Micro Devices Inc. (NASDAQ: AMD) was reiterated as Buy at Jefferies, and the firm raised its price target to $5.50 from $4.50 (versus a $4.32 close). The firm believes that AMD is having good execution on its 14nm Polaris GPU and on pending ramps of three new semi-custom products. AMD has a consensus analyst price target of $3.56 and a 52-week trading range of $1.61 to $4.71.
Agios Pharmaceuticals Inc. (NASDAQ: AGIO) shares were indicated up 8% at $54.50 after presenting data for Phase 2 DRIVE-PK study of AG-348, showing rapid and sustained hemoglobin increases. The stock was maintained as Neutral at Janney, but the fair value was lowered to $47 from $52. JPMorgan raised its rating from Neutral to Overweight with a $62 price target.
Baidu Inc. (NASDAQ: BIDU) was downgraded to Neutral from Buy and the price target was cut to $180 from $238 (versus a $164.28 close) at Citigroup. The consensus price target is $209.10, and the 52-week range is $100.00 to $217.97.
Diamond Offshore Drilling Inc. (NYSE: DO) was started with a Buy rating at Merrill Lynch with a $34 price objective (versus a $24.32 close). The consensus price target is $20.61. The 52-week range is $14.18 to $29.21.
LyondellBasell Industries N.V. (NYSE: LYB) was downgraded to Market Perform from Outperform and the price target was cut to $87 from $105 (versus an $80.47 close) at Cowen. It has a consensus price target of $94.37 and has a 52-week range of $69.10 to $106.50.
Occidental Petroleum Corp. (NYSE: OXY) was downgraded to Equal Weight from Overweight at Morgan Stanley. It has a consensus price target of $78.04 and a 52-week range of $58.24 to $79.75.
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Other top analyst upgrades and downgrades were seen in the following: