Top Analyst Upgrades and Downgrades: Andeavor, CSX, Lam Research, Owens Corning, UPS, Xerox and More

May 14, 2018 by Lee Jackson

The futures traded higher again on Monday morning as the new trading week started on the back of one of the best weeks for the markets since March. The venerable Dow Jones industrial average index posted a seventh straight day of gains last Friday, and traders will be looking to extend the gains.

Some investors have reconsidered what the nine-year bull market may bring in 2018 and beyond. It has become clear that the multiyear trend of buying pullbacks is now more vulnerable to sellers, volatility and each major news headline. Many investors are finding it harder to decide how they want their assets positioned for the longer term.

24/7 Wall St. reviews dozens of analyst research reports each day of the week to find new investing and trading ideas for our readers. Some of the top analyst reports cover stocks to buy. Others cover stocks to sell or to avoid.

Additional color and commentary have been added on some of these daily analyst calls. The consensus analyst price target data are from the Thomson Reuters sell-side research service.

These were the top analyst upgrades, downgrades and other research calls from Monday, May 14, 2018.

Andeavor (NYSE: ANDV) was downgraded to Neutral from Overweight at JPMorgan. The 52-week trading range for the refining giant is $80.44 to $144.06. Marathon Petroleum is buying Andeavor in a massive $23.3 billion deal. The Wall Street consensus price target is $138.61, and the stock closed Friday at $140.16.

CSX Corp. (NYSE: CSX) was raised to Buy from Neutral at Goldman Sachs. The 52-week trading range for the railroad is $47.99 to $63.88. The consensus price target is $65.57, and the stock closed Friday at $63.09.

FMC Corp. (NYSE: FMC) was raised to Buy from Neutral at Goldman Sachs. The 52-week trading range is $69.94 to $98.70, and the consensus price objective is $97.85. The shares closed Friday at $88.90 but traded up smartly in Monday’s premarket action on the upgrade.

L Brands Inc. (NYSE: L) was raised to Buy from Neutral at Citigroup. The 52-week trading range for the lingerie retailer is $30.70 to $63.10. The consensus price objective is $44.83, and the stock closed Friday at $32.33.

Lam Research Corp. (NASDAQ: LRCX) was raised to Buy from Neutral at Citigroup. The 52-week trading range for the semiconductor capital equipment leader is $139.24 to $234.88. The consensus price objective is $266.55. The shares closed Friday at $201.55.

Owens Corning Inc. (NYSE: OC) was downgraded to Market Perform from Outperform at Wells Fargo. The stock has traded in a 52-week range of $59.96 to $96.52. The consensus price target is $86.68, and the shares closed trading Friday at $66.92.

Masco Inc. (NYSE: MAS) was downgraded to Neutral from Buy at Merrill Lynch. The 52-week trading range is $35.79 to $46.45. The consensus price target is set at $45.83. The shares closed last Friday at $38.07.

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United Parcel Service Inc. (NYSE: UPS) was raised to Buy from Neutral at Merrill Lynch. The 52-week trading range for the venerable delivery company is $101.45 to $135.53. The consensus price target is set at $124.71, and the stock closed trading on Friday at $115.45.

Westinghouse Air Brake Technologies Corp. (NYSE: WAB) was raised to Buy from Hold at Deutsche Bank. The shares have traded in a 52-week range of $69.32 to $94.29, and the consensus price objective is $92. The stock closed Friday at $93.06, but it looks to be breaking through highs posted almost a year ago.

Xerox Inc. (NYSE: XRX) was downgraded to Neutral from Buy at JPMorgan. The 52-week trading range is $27.66 to $32.32. The posted consensus price target is at $39.80. The shares closed Friday at $30.17.

Other key analysts upgrades and downgrades were seen in the following.

Dean Foods Co. (NYSE: DF) was downgraded to Sell from Hold at Deutsche Bank. The 52-week trading range is $8.14 to $18.90, and the consensus price target is $9.21. The stock closed Friday at $10.47.

Hilltop Holdings Inc. (NYSE: HTH) was downgraded to Neutral from Buy at Compass Point. The 52-week trading range is $21.47 to $28.32, and the consensus price objective is set at $27.70. The shares ended Friday trading at $22.71

Hostess Brands Inc. (NASDAQ: TWNK) was downgraded to Hold from Buy at Deutsche Bank. The 52-week trading range for the maker of Twinkies and other treats is $11 to $17.03. The consensus price target is $17.40, and the stock closed Friday at $13.27.

Legacy Reserves L.P. (NASDAQ: LGCY) was raised to Neutral from Sell at UBS. The stock has traded in a 52-week range of $1.07 to $8.49, and the consensus price target is $5.50. The shares closed Friday at $7.99.

Meritage Homes Corp. (NYSE: MTH) was raised to Buy from Neutral at Merrill Lynch. The 52-week trading range is $38.80 to $55.50, and the consensus price target is $55.45. The shares closed Friday at $44.15.

MongoDB Inc. (NASDAQ: MDB) was started with an Overweight rating at KeyBanc Capital Markets. The 52-week trading range is $24.62 to $46.26. The consensus price objective is set at $41.25. The shares ended last week at $43.21.

Surface Oncology Inc. (NASDAQ: SURF) was started with a Neutral rating and a $17 target price at Goldman Sachs. Cowen initiated it with a Buy rating, and Evercore ISI started the shares with a Buy rating and $26 target. The stock was an IPO that came to market in April, and the shares have traded between $12.08 and $15.19 since the deal priced. The stock closed Friday $14.05.

United Insurance Holdings Corp. (NYSE: UIHC) was downgraded to Outperform from Strong Buy at Raymond James. The shares have traded in a 52-week range of $13.60 to $20.84. The consensus price target is set at $21.83, and the stock closed Friday at $20.82, so this could be a valuation call.

In case you missed it, last Friday’s top analyst upgrades and downgrades included AMC Networks, Alkermes, Echostar, Kohl’s, U.S. Bancorp, L Brands, Sarepta Therapeutics and more.

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