The futures were higher across the board on Wednesday, after traders did some serious selling Tuesday. We saw some consolidation across all the major indexes after the massive rally to start the week and month. With the stimulus bill going to the Senate, there may very well be some tinkering, but most still continue to believe it will be approved, perhaps as early as next week. Top analysts continue pointing to “bubble” metrics, like the massive “meme” retail stock and option trading, huge hedge fund leverage and IPOs that don’t make money as examples, and many are urging caution.
With fourth-quarter earnings results all but complete, most across Wall Street have not only been examining the results but also looking to see what guidance for the balance of the first quarter and the rest of 2021 looks like. With stocks very overbought, and major Wall Street firms still warning of the potential for impending 5% to 10% correction, it makes sense 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, March 3, 2021.
Adobe Inc. (NASDAQ: ADBE) was resumed in coverage at Citigroup with a Neutral rating and a $523 price target. The consensus target for the technology leader is higher at $563.30. The stock was last seen on Tuesday trading at $466.59.
Alcoa Corp. (NYSE: AA) was raised at Goldman Sachs from Sell to Buy with a $32 price target. The consensus target for the aluminum giant is $22.86, and the shares closed most recently at $27.50, up almost 6% on Tuesday. The stock followed through in the premarket with an additional 4.5% gain.
Casa Systems Inc. (NASDAQ: CASA) was raised at JPMorgan from Underweight to Neutral with a $10 target. The consensus target is in line at $10.50, and the stock closed on Tuesday at $8.02, down almost 6% on the day. The shares were up 8% in the premarket and have been volatile since the company posted big results last week.
Eaton Corp. PLC (NYSE: ETN) was raised at Morgan Stanley from Equal Weight to Overweight with a $155 price target. That compares with the lower $137.89 consensus and Tuesday’s $133.97 closing price.
Fastly Inc. (NYSE: FSLY) was resumed in coverage at Citigroup with a Sell rating and a $49 target. The consensus target is $85.40, and Tuesday’s $70.90 close followed a more than 8% retreat after the company announced a big convertible note offering.
Fisker Inc. (NYSE: FSR) was raised to Peer Perform from Underperform at Wolfe Research. Shares of the electric vehicle company have traded in a 52-week range of $8.70 to $31.96 and have a $25.33 consensus price objective. The final trade Tuesday hit the tape at $28.25, up over 3% on the day.
HubSpot Inc. (NASDAQ: HUBS) was resumed in coverage at Citigroup with a Buy rating and a $545 target. The consensus target is $559.63, and the stock closed Tuesday at $517.39.
Iridium Communications Inc. (NASDAQ: IRDM) was raised to Outperform from Market Perform at Raymond James, which has a $44 price target. The consensus target is $36.00. The last trade on Tuesday was recorded at $39.47, which was down almost 6% for the day. The shares rallied almost 3% in Wednesday’s premarket.
KeyCorp (NYSE: KEY) was downgraded from Overweight to Neutral with a $20.50 price target at Piper Sandler. The consensus target for the regional banking company is $19.76, and the stock closed on Tuesday at $20.65.
Oceaneering International Inc. (NYSE: OII) saw its price target raised to $14 from $11 at Cowen. The consensus target for the deepwater drilling engineering firm is $12.41. Tuesday’s last trade came in at $12.34.
Owens Corning (NYSE: OC) was downgraded to Sell from Buy at Goldman Sachs, which also lowered the price target to $76. The consensus target is up at $92, and Tuesday’s close was at $83.02 a share.
Prudential Inc. (NYSE: PRU) was downgraded to Neutral from Overweight at JPMorgan, which kept a $91 price target on the insurance and financial services giant. The lower consensus target is $85.27, and Tuesday’s last trade was at $89.02. With shares trading near the 52-week high, this could be a valuation call.
Rapid7 Inc. (NASDAQ: RPD) was raised to Overweight from Neutral at Piper Sandler, which also raised the price target to $100. The consensus target is just higher at $102.46. Shares close at $78.99 on Tuesday.
Rocket Companies Inc. (NYSE: RKT) was downgraded from Outperform to Sector Perform with a $30 price target at RBC Capital Markets. The consensus target for the mortgage giant is $24.86. The shares exploded higher Tuesday, closing up over 70% at $41.60 as the Reddit/WallStreetBets traders jumped on the stock, which has over 40% of the float sold short. Shares gave back almost 5% in premarket action.
Roku Inc. (NASDAQ: ROKU) was raised from Sector Weight to Overweight with a $518 price target at KeyBanc Capital Markets. The consensus target is much lower at $456.76. Shares closed on Tuesday at $389.67, after retreating over 7% on the day.
Sensata Technologies Holdings PLC (NYSE: ST) was upgraded to Overweight from Neutral at JPMorgan, which also raised the price target to $72. The lower $61.11 consensus target is higher than Tuesday’s close at $59.64 a share.
Shopify Inc. (NASDAQ: SHOP) was resumed in coverage at Citigroup with a Neutral rating and a $1,457 price target. The consensus target is $1,444.41, and Tuesday’s final print was $1,309.06.
Sleep Number Corp. (NASDAQ: SNBR) was named as the Zacks Bull of the Day stock. The firm said that comfort is king lately and consumers love to get comfortable on Sleep Number products. Shares last closed at $143.09, but the consensus price target is just $131.75.
Target Corp. (NYSE: TGT) saw its price target lowered to $215 from $225 at Telsey Advisory Group. The consensus target for the big-box retailer is $199.15. The stock closed Tuesday at $173.49, down almost 7% for the day.
3D Systems Corp. (NYSE: DDD) was raised from Sell to Hold with a $31 price target at Loop Capital. The consensus target is $20.50. The stock closed Tuesday’s trading session at $31.17, after pulling back almost 20% in the wake of missing earnings estimates but higher year-over-year revenues.
Goldman Sachs raised the price targets on stocks of four top tech companies that delivered the goods in a big way during earnings season and still look to have some very solid upside potential.
Tuesday’s early top analyst upgrades and downgrades included Akamai Technologies, Beyond Meat, Broadcom, Dow, Morgan Stanley, Plug Power, TripAdvisor and Zoom Video Communications. Analyst calls seen later in the day were on Carnival, Royal Caribbean, Switch and more.
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