Top Analyst Upgrades and Downgrades: Applied Materials, CSX, Freeport-McMoRan, Frontier Communications, Lululemon, McDonald’s, T-Mobile, Ulta, Windstream and More

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Lululemon Athletica Inc. (NASDAQ: LULU) was downgraded to Neutral from Buy with a $157 price target (versus a $151.09 close) at Nomura/Instinet. It had a consensus target price of $162.24.

McDonald’s Corp. (NYSE: MCD) was raised to Overweight from Equal Weight and the price target was raised to $200 from $180 (versus a $151.09 close) at Stephens.

Norfolk Southern Corp. (NYSE: NSC) was downgraded to Underperform from Sector Perform at RBC Capital Markets.

Papa John’s International Inc. (NASDAQ: PZZA) was downgraded to Sell from Hold and the price target was lowered to $35 from $38 (versus a $45.26 close, after a 4% gain) at Stifel. The consensus target price was $52.40.

Southern Copper Corp. (NYSE: SCCO) was raised to Buy from Sell at Citigroup. Shares closed up 3.3% at $32.50 ahead of this call, with a prior consensus target price of $35.07 and a 52-week range of $29.01 to $58.09.

Taubman Centers Inc. (NYSE: TCO) was raised to In-Line from Underperform at Evercore ISI. It has a 52-week range of $43.44 to $65.50 and a consensus price target of $56.08.

T-Mobile US Inc. (NASDAQ: TMUS) was reiterated as Buy with a $78 target price (versus a $72.05 close) at Argus. It has a 52-week range of $55.09 to $72.07 and a consensus price target of $81.10.

Ulta Beauty Inc. (NASDAQ: ULTA) was downgraded to Neutral from Buy with a $311 price target (versus a $306.36 close) at Nomura/Instinet.

Weight Watchers International Inc. (NYSE: WTW) was downgraded to Underweight from Neutral and the target price was lowered to $25 from $37 (versus a $30.28 close) at JPMorgan. The stock was indicated down almost 6% at $28.50 on Tuesday, and the prior consensus target price was $72.18.

Windstream Holdings Inc. (NASDAQ: WIN) was downgraded to Market Perform from Outperform at Raymond James and to Market Perform from Outperform at Cowen. Its shares were indicated down about 60% after delaying its earnings release and losing in its legal case with hedge fund Aurelius.

XPO Logistics Inc. (NYSE: XPO) was downgraded to Equal Weight from Overweight and the target price was lowered to $71 from $116 (versus a $51.97 close, after a 12.7% drop) at Morgan Stanley. The 52-week range is $41.05 to $116.27.

JPMorgan initiated coverage of the auto dealers with a rather broad mix of coverage ratings on Tuesday:

  • Lithia Motors Inc. (NYSE: LAD) was started as Overweight with a $112 price target and Group 1 Automotive Inc. (NYSE: GPO) was started as Overweight with a $77 price target.
  • Sonic Automotive Inc. (NYSE: SAH) and AutoNation Inc. (NYSE: AN) were started as Underweight.
  • Penske Automotive Group Inc. (NYSE: PAG) and Asbury Automotive Group Inc. (NYSE: ABG) were both started as Neutral.

Friday’s top analyst calls included Adobe Systems, AIG, CareDx, Coca-Cola, General Dynamics, Harvard Bioscience, LogMeIn, TrueCar, WorkDay and many more.

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