Top Analyst Upgrades and Downgrades: Activision, Diamond Offshore, FLIR, Home Depot, Kohl’s, Nucor, Redfin, Tesla, Vishay and More

May 22, 2019 by Jon C. Ogg

Stocks were indicated to open down by about 0.5% on Dow Jones industrials and S&P 500 futures on Wednesday. Investors have seen more than just a couple of reasons that might amplify their belief that “sell in May and go away” is prudent, but there are also many bargains remaining in the market, with so many companies and sectors having already pulled back handily. With the major market indexes still quite close to all-time highs, investors should be considering how they want their portfolios positioned for the rest of 2019.

24/7 Wall St. reviews dozens of analyst research reports each day of the week in an effort to find new trading and investing ideas for our readers. Some of these daily analyst reports cover stocks to buy, but other reports cover stocks to sell or to avoid.

Additional commentary and trading data have been added on some of the daily analyst reports. The consensus analyst price targets and other valuation metrics are from the Refinitiv (Thomson Reuters) sell-side research service.

These are the top analyst upgrades, downgrades and initiations seen on Wednesday, May 22, 2019.

Activision Blizzard Inc. (NASDAQ: ATVI) was downgraded to Equal Weight from Overweight at Stephens. After closing down 0.3% at $43.45 on Tuesday, its shares were indicated down almost 2% at $42.60 on Wednesday morning. The 52-week trading range is $39.85 to $84.68, and the consensus target price is $52.93.

Anadarko Petroleum Corp. (NYSE: APC) was downgraded to Market Perform from Outperform at Cowen. The 52-week range is $40.40 to $76.70, and the consensus target price is $70.40.

Diamond Offshore Drilling Inc. (NYSE: DO) was raised to Neutral from Underweight at Piper Jaffray after its shares closed up almost 1% at $9.64. The 52-week range is $8.71 to $21.92. The consensus target price is $12.10.

FLIR Systems Inc. (NASDAQ: FLIR) was raised to Outperform from In-Line and the target price was raised to $57 from $56 (versus a $49.67 prior close) at Imperial Capital. The 52-week range is $40.52 to $63.88, and the consensus target price is $59.13.

Home Depot Inc. (NYSE: HD) was reiterated as Buy and the target price was raised to $210 from $200 (versus a $191.45 close) at Stifel. The 52-week range is $158.09 to $215.43. The consensus target price is $205.86.

Kohl’s Corp. (NYSE: KSS) was maintained as Hold but the price target was reduced to $59 from $71 at Deutsche Bank, a day after its shares fell over 12% to $55.15 on its post-earnings reaction. The 52-week range is $54.15 to $83.28. The consensus target price is $76.13.

Legg Mason Inc. (NYSE: LM) was raised to In-Line from Underperform at Evercore ISI. The 52-week range is $23.25 to $39.25. The consensus target price is $35.91.

Mallinckrodt PLC (NYSE: MNK) was downgraded to Hold from Buy and the price target was slashed to $15 from $25 at Jefferies, a day after its shares fell by 24% to $9.87 on about seven times normal trading volume. The 52-week range is $8.45 to $36.65, and the consensus target price is $27.54.

Nucor Corp. (NYSE: NUE) was maintained as Overweight but the target price was lowered to $66 from $70 (versus a $53.68 close) at KeyBanc Capital Markets. The 52-week range is $49.79 to $68.84, and the consensus target price is $68.54.

Pure Storage Inc. (NYSE: PSTG) was maintained as Hold but the price target was cut to $20 from $22 (versus a $20.60 close) at Stifel. The shares were indicated to open down by about 18% at $16.85 after its earnings. The 52-week range is $13.99 to $29.14. The consensus target price is $25.56.

Redfin Corp. (NASDAQ: RDFN) was raised to Neutral from Underperform at D.A. Davidson. The 52-week range is $13.50 to $26.01. The consensus target price is $21.38.

Ryanair Holdings PLC (NASDAQ: RYAAY) was downgraded to Reduce from Neutral at HSBC. After its American depositary shares closed up 3.6% at $70.19, the stock was indicated down 3.1% at $68.00 on Wednesday. The 52-week range is $65.61 to $121.45. The consensus target price is $82.50.

Semtech Corp. (NASDAQ: SMTC) was started with an Outperform rating and assigned a $56 price target (versus a $44.76 close) at Cowen. The 52-week range is $41.28 to $60.55. The consensus target price is $58.18.

Tesla Inc. (NASDAQ: TSLA) was reiterated as Sell and the target price was lowered to $191 from $238 at Citigroup. The 52-week range is $195.25 to $387.46. The consensus target price is $283.32.

Titan Medical Inc. (NASDAQ: TMDI) was started with an Overweight rating and assigned a target price of $6 at Piper Jaffray. Shares closed up 6.9% at $2.71 ahead of the call, in a 52-week range of $1.05 to $198.00. But this still represents more than 100% upside, even with a 4.4% rise to $2.83 early on Friday. This company had only an $86 million market cap as of Tuesday’s closing bell.

Vishay Intertechnology Inc. (NYSE: VSH) was started as Market Perform at Cowen. The 52-week range is $15.91 to $26.50. The consensus target price is $18.50.

Zayo Group Holdings Inc. (NASDAQ: ZAYO) was downgraded to Market Perform from Outperform at Raymond James. The 52-week range is $20.27 to $39.66, and the consensus target price is $34.85.

Jefferies has four winners it sees from 5G, and the firm was lucky enough not to have Qualcomm on there considering a judge’s ruling brings up antitrust concerns for the leader in mobility chipsets.

Tuesday’s top analyst calls included Tesla, Uber, Amgen, Biogen, Gilead Sciences, Deckers Outdoor, Vertex Pharmaceuticals, KKR and many more.


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