The futures initially traded higher on Wednesday before pulling back. This after a session of major selling and then a massive reversal across Wall Street on Tuesday. With all the major indexes hit hard initially, including the Russell 2000, the market rallied big after dovish comments by Federal Reserve Chair Jay Powell indicated the central bank would stay on the same low interest rate course. Top analysts continue pointing to “bubble” metrics, like the massive retail stock and option trading, huge hedge fund leverage and IPOs that don’t make money as examples, and many are urging caution.
While fourth-quarter earnings results are almost complete, most across Wall Street still are not only examining the results but also looking to see what guidance for the balance of the first quarter and the rest of the year looks like. With stocks very overbought, major Wall Street firms are warning of an impending 5% to 10% correction, so it makes sense now for investors to start building some cash reserves while repositioning portfolios for the rest of 2021.
24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding new ideas for investors and traders alike. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. Consensus analyst target data is from Refinitiv.
These are the top analyst upgrades, downgrades and initiations seen on Wednesday, February 24, 2021.
American Eagle Outfitters Inc. (NYSE: AEO) was raised from Market Perform to Outperform with a $31 price target at Cowen. The posted consensus target is $26.85. The last trade for Tuesday came in at $25.56 a share.
Ares Management Inc. (NYSE: ARES) was started at Credit Suisse with a Neutral rating and a $54 price target. The consensus target is$56.90. The stock closed Tuesday at $50.71.
Bank of Montreal (NYSE: BMO) was raised to Outperform from Neutral at Credit Suisse. The stock has traded in a 52-week range of 38.31 to $83.79 and has an $85.95 consensus price target. The stock rose 3% on Tuesday to close at $83.38.
BigCommerce Holdings Inc. (NASDAQ: BIGC) was raised from Sector Weight to Overweight with a $75 price target at KeyBanc Capital Markets. That compares with the consensus target of $75.82 and Tuesday’s close of $63.33, which was down over 7%. The shares are rebounding in the premarket up almost 6%.