Top Analyst Upgrades and Downgrades: AEP, Beyond Meat, Conoco, Delta, JPMorgan, First Solar, Luckin, Peloton, PG&E, Qualcomm, Redfin, Zynga and More

January 15, 2020 by Jon C. Ogg

Stocks have hit new all-time highs in recent days after a very strong 2019, but they were looking a tad soft on Wednesday as the U.S.-China trade pact’s phase-one deal is being signed. The market strength has the indexes in overbought conditions and many key stocks have continued their 2019 surge even higher into 2020.

Many investors still have not made portfolio changes during and after a very strong market in 2019, but there is still time to get positioned for 2020. There are many market risks, concerns and headlines that may come with worry, but global growth may see a rekindled strength this year, while interest rates are expected to remain stable. This is also an election year in which much is at stake, and strategists are by and large calling for single-digit percentage gains in 2020.

24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding new ideas for traders and long-term investors alike. Some of the daily analyst calls cover stocks to buy, while some calls cover stocks to sell or to avoid.

We have provided these analyst calls in a quick-hit summary for easy reading, and additional comments and trading data have been added on many calls. The consensus analyst price targets and other valuation metrics are from the Refinitiv sell-side research service.

Our 2020 Bull/Bear Outlook sees the Dow rising by about 7.4% to 30,650 this year, but there are outliers that could help the Dow rise by over 10% after a very strong 2019. The upside scenario puts Dow 32,000 easily within reach if only a few things go right this year.

These are the top analyst upgrades, downgrades and initiations from Wednesday, January 15, 2020.

American Electric Power Co. Inc. (NYSE: AEP) was upgraded to Outperform from Sector Perform and its target price was raised to $103 from $96 (versus a $94.98 prior close) at RBC Capital Markets.

Beyond Meat Inc. (NASDAQ: BYND) has seen its shares surge more than 50% in just over a week, but Bernstein has downgraded shares of the plant-based meat alternative company to Market Perform from Outperform, with a $106 target price. Its prior consensus target price was $105.13.

BlackRock TCP Capital Corp. (NASDAQ: TCPC) was downgraded to Equal Weight from Overweight at Wells Fargo, and this business development company has roughly a 10% yield.

Blueprint Medicines Corp. (NASDAQ: BPMC) was reiterated as Outperform and its target price was raised to $122 from $141 (versus a $75.64 close) at Wedbush Securities. The firm has adjusted its financial model for updated 2020 regulatory guidance and over a stronger positive view of pralsetinib’s competitive potential in RET fusion-positive non-small cell lung cancer.

Canada Goose Holdings Inc. (NYSE: GOOS) was named as the Zacks Bear of the Day stock. The firm said that this high-end outerwear manufacturer may be running out of customers for its expensive wares. Shares last closed at $34.50 and have a consensus price target of $32.90.

Cardlytics Inc. (NASDAQ: CDLX) was downgraded to Market Perform from Outperform at Raymond James.

ConocoPhillips Co. (NYSE: COP) was started as Outperform with a $72 target price (versus a $65.14 close) at Robert W. Baird. Conoco has a consensus target price of $74.55, and its 52-week trading range is $50.13 to $71.01.

Delta Air Lines Inc. (NYSE: DAL) was reiterated as Buy and the target price was raised to $71 from $65 (versus a $61.45 close) at Citigroup.

Dicks Sporting Goods Inc. (NYSE: DKS) was named as the Bull of the Day at Zacks, which said that limited firearm sales and innovative new house brands have been a big success for this retailer. Shares most recently closed at $49.40, with a consensus price target of $50.21.

Embraer S.A. (NYSE: ERJ) was downgraded to Neutral from Buy a UBS. The Brazilian jet maker’s American depositary shares closed down 0.2% at $19.68, in a 52-week range of $15.86 to $22.90 and with a consensus target price of $22.98.

Federal Realty Investment Trust (NYSE: FRT) was raised to Buy from Hold with a $144 target price (versus a $127.67 close) at Jefferies. The REIT has close to a 3.3% dividend yield.

First Solar Inc. (NASDAQ: FSLR) was downgraded to Underweight from Overweight and the target price was lowered to $49 from $66 at Barclays. The stock previously closed up 2.3% at $58.78, but it was indicated down almost 5% at $56.00 on Wednesday. The prior consensus target price was $69.25 ahead of the call. The 52-week trading range is $45.77 to $69.24.

Huntsman Corp. (NYSE: HUN) was started as Buy with a $27 target price (versus a $23.21 close) at Merrill Lynch. The prior consensus target price was $26.88

JPMorgan Chase & Co. (NYSE: JPM) was reiterated as Outperform and the target price was raised to $147 from $142 at Credit Suisse after earnings.

Logitech International S.A. (NASDAQ: LOGI) was downgraded to Neutral from Outperform at Wedbush, which noted that its growth drivers are in place but its shares are fully valued and reflecting those improvements at the current share prices.

Luckin Coffee Inc. (NASDAQ: LK) was reinstated as Outperform with a $54.40 target price (versus a $45.80 close) at Credit Suisse. The firm sees its business model having evolved rapidly since its 2019 IPO to beyond coffee penetration from its larger retail network density, more product categories and strong traffic growth
all helping to build the company’s own ecosystem and growing its competitive moat.

Maxar Technologies Inc. (NYSE: MAXR) was raised to Neutral from Underperform with a $22 target price at Credit Suisse, with the firm noting that its liquidity risks are now significantly diminished.

Momenta Pharmaceuticals Inc. (NASDAQ: MNTA) was raised to Overweight from Neutral with a $30 target price (versus a $25.36 close, after a 23.7% gain) at JPMorgan. The shares rose after its 2019 update and 2020 outlook were released.

Nutrien Ltd. (NYSE: NTR) was downgraded to Market Perform from Outperform and the target price was lowered to $53 from $68 (versus a $48.35 close) at Bernstein. The Canadian seller of crop nutrients has a 52-week trading range of $45.82 to $56.00, and its consensus target price was $58.28.

Peloton Interactive Inc. (NASDAQ: PTON) was started as Outperform with a $37 target price (versus a $29.69 close) at Wedbush. The firm addressed many upsides and risks in the call, and full details are available.

PG&E Corp. (NYSE: PCG) was upgraded to Buy from Neutral and its target price was raised to $15 from $11 at Citigroup. Shares closed up almost 8% at $11.92, and they were indicated up over 5% at $12.60 after this upgrade.

Qualcomm Inc. (NASDAQ: QCOM) was raised to Buy from Hold with a $104 target price (versus a $90.56 close) at DZ Bank. The prior consensus target price was $97.66, and the 52-week trading range is $49.10 to $94.11.

Realty Income Corp. (NYSE: O) was raised to Buy from Neutral with an $84 target price (versus a $74.96 close) at Mizuho.

Redfin Corp. (NASDAQ: RDFN) was reiterated as Outperform and its target price was raised to $28 from $26 (versus a $22.25 close) at Wedbush, with the new brokerage pricing structure being a focal point in the call.

Spirit AeroSystems Holdings Inc. (NYSE: SPR) was downgraded to Neutral from Buy at Merrill Lynch. Shares closed up 0.3% at $67.97 ahead of the call, in a 52-week range of $65.72 to $100.34.

Tilly’s Inc. (NYSE: TLYS) was downgraded to Hold from Buy and the target price was lowered to $10.00 from $13.50 at Pivotal Research. It previously closed down 2.2% at $8.88, and the younger retail apparel destination store operator had a $12.13 consensus target price.

Ubiquity Networks (NYSE: UI) was downgraded to Underperform from Neutral but the target price was raised to $135 from $115 (versus a $185.07 close) at Credit Suisse, with the firm seeing little justification for the premium trading multiple as it factors in decelerating revenue and earnings growth.

Zynga Inc. (NASDAQ: ZNGA) was started with an Overweight rating and an $8.50 target price (versus a $6.77 close) at KeyBanc Capital Markets. The prior consensus target price was $7.50, and the 52-week trading range is $4.21 to $6.81.

With more firms like BlackRock and Goldman Sachs making massively expanded commitments to ESG and climate change, Goldman Sachs has a list of top clean energy solar stock picks for big upside ahead.

Tuesday’s top analyst upgrades and downgrades included Amazon.com, Apple, Baker Hughes, Bed Bath & Beyond, BP, GameStop, Meet, Total, Visa, Wynn Resorts and many more.