Stocks were indicated to open marginally lower on Friday after the equity indexes posted a mixed week. It still needs to be considered that the major market indexes are all within striking distance of all-time highs. It is also important to consider that this bull market is now more than eight years old and investors have bought every single pullback. Those same investors are also looking for new trading and investing ideas.
24/7 Wall St. reviews dozens of analyst research reports each day of the week. The goal is 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.
These were the top analyst upgrades, downgrades and other research calls on Friday, May 12, 2017.
Ambac Financial Group Inc. (NASDAQ: AMBC) has been in the news over its bond insurance exposure to Puerto Rico, even as it looks to limit that risk. Ambac shares closed down 4.2% at $17.34 on Thursday, but the stock was upgraded to Neutral from Sell with a $17 price target at MKM Partners. This call was just a day after BTIG maintained its Buy rating on Ambac but lowered its target price down to $26 from $28, noting that Ambac was adding to its Puerto Rico reserves.
Bed Bath & Beyond Inc. (NASDAQ: BBBY) was raised to Hold from Sell at Loop Capital. It closed down 2.6% at $36.66 on Thursday but was indicated up 0.9% at $37.00 on Friday. Bed Bath & Beyond has a 52-week trading range of $36.51 to $48.83 and a consensus analyst target price of $39.05.
Loop Capital’s upgrade on Bed Bath & Beyond may sound like more of an endorsement, but that actually was not the case. The report noted that this call is based on Bed Bath & Beyond’s valuation rather than being based on a more bullish fundamental view. They believe that the company’s results will be negatively impacted by secular online sales headwinds. The current valuation was said to be largely in line with Loop’s relatively bearish fundamental outlook.
General Electric Co. (NYSE: GE) was downgraded to Sell from Hold at Deutsche Bank. GE shares closed up 0.6% at $28.87 on Thursday but were indicated down 1.5% at $28.44 on Friday morning. The 52-week range is $28.19 to $33.00, and the consensus target price was $32.57 prior to this call. What should stand out here is that Deutsche Bank’s price target is down at $24, which would represent a 52-week low if it occurs — and it is $3 lower than the lowest price target of all sell-side analysts tracked by Thomson Reuters.
Expanded analyst downgrade coverage from the Deutsche Bank call has been provided. The reasons for the negativity have been present for some time, but has some views GE’s dividend and cash flow metrics.
Tiffany & Co. (NYSE: TIF) was raised to Buy from Neutral with a $107 price target (versus a $92.02 prior close) at Goldman Sachs. Tiffany shares have a 52-week range of $56.99 to $97.29, and the consensus price target is $95.53.
Trade Desk Inc. (NASDAQ: TTD) was raised to Overweight from Neutral at Cantor Fitzgerald. The shares were indicated up 21% at $48.51 on Friday morning after the programmatic advertising company beat earnings. Trade Desk’s prior year high was $46.21, and its consensus target price was $43.43 ahead of this call. RBC Capital Markets has an Outperform rating on Trade Desk but raised its target to $56 from $45.
As the market may feel overbought, here are five stocks that JPMorgan says are safe to buy.
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Other key analyst calls were seen in the following:
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