Stocks have been hitting all-time highs, even after the phase-one trade pact with China was signed. Tuesday’s return after the Martin Luther King extended weekend was seeing profit-taking ahead of the opening bell, and the International Monetary Fund lowered its 2020 global growth forecast to 3.3% from 3.4% but also noted more stabilization around trade pacts.
Many investors still have not made portfolio changes during and after a very strong market in 2019. The markets are treating a risk-on trade as being better than sell-the-news at this time, despite being in overbought territory heading into earnings season. 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.
These are the top analyst upgrades, downgrades and initiations from Tuesday, January 21, 2020.
Advanced Micro Devices Inc. (NASDAQ: AMD) was reiterated as Outperform and the target price was raised to $60 from $47 (versus a $50.93 prior close) at Cowen, with the firm noting that it will face higher growth and is better positioned in is competition against Intel for processors.
Alibaba Group Holding Ltd. (NYSE: BABA) was reiterated as Overweight and the target price was raised to $260 from $245 (versus a $227.43 close) at KeyBanc Capital Markets.
Allstate Corp. (NYSE: ALL) was started as Buy with a $135 target price (versus a $117.55 close) at Citigroup.
American International Group Inc. (NYSE: AIG) was started as Neutral at Citigroup.
Baidu Inc. (NASDAQ: BIDU) was reiterated as Overweight and the target price was raised to $160 from $155 at KeyBanc Capital Markets.
Bank of New York Mellon Corp. (NYSE: BK) was raised to Outperform from Neutral with a $54 target price (versus a $46.18 close) at Credit Suisse.
Broadcom Inc. (NASDAQ: AVGO) was reiterated as Buy and the target price was raised to $366 from $361 (versus a $308.79 close) at SunTrust Robinson Humphrey. The call suggests that the buying catalyst is long-term dividend growth and that it has underperformed against peer with great relative value.
Centennial Resource Development Inc. (NASDAQ: CDEV) was downgraded to Hold from Buy at SunTrust Robinson Humphrey.
Chubb Ltd. (NYSE: CB) was started as Neutral at Citigroup.
Coeur Mining Inc. (NYSE: CDE) was downgraded to Sector Perform from Outperform at RBC Capital Markets.
Costco Wholesale Corp. (NASDAQ: COST) was raised to Outperform from Perform at Oppenheimer, but the firm had downgraded the stock back in September, noting at the time that investors had gotten too optimistic and that the valuations were at all-time highs.
EOG Resources Inc. (NYSE: EOG) was raised to Buy from Hold and the target price was raised to $110 from $80 (versus an $85.31 close) at SunTrust Robinson Humphrey.
EQT Corp. (NYSE: EQT) was raised to Buy from Hold at SunTrust Robinson Humphrey.
Impinj Inc. (NASDAQ: PI) was reiterated as Buy and its target was raised to $34 from 432 (versus a $31.70 close) at Needham.
Inphi Corp. (NYSE: IPHI) was named as the Bull of the Day at Zacks, which said that this firm has crushed its industry’s recent expansion and appears to be a chip stock investors want. Shares most recently closed at $83.11, with a consensus price target of $83.15.
Intel Corp. (NASDAQ: INTC) was raised to Hold from Underperform at Jefferies. While the rating is still not a Buy, the target price was raised to $64 from $40, against a prior consensus target price of $57.25. Intel previously closed at $59.60.