The futures were mixed on Tuesday morning after a back-and-forth Monday that saw the Dow Jones industrial average post its fourth consecutive all-time high. The S&P 500 and Russell 2000 again hit all-time highs, and the other indexes closed higher. Wall Street strategists are becoming increasingly bullish on the potential for very strong economic growth this quarter and for the entire year. Many feel the unleashing of the stimulus money, combined with the opening of the country, looks like a very big tailwind for the economy.
Despite the strong gains, top strategists on Wall Street 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, so the current volatility may be here for some time.
Wall Street analysts have been examining earnings results and also looking to see what guidance for the balance of the first quarter and the rest of 2021 looks like. With major Wall Street firms still warning of the potential for impending 5% to 10% correction across the board, it makes sense for investors to continue building some cash reserves into the market strength, while repositioning portfolios for the start of the second quarter and 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 Tuesday, March 16, 2021.
Adobe Inc. (NASDAQ: ADBE) was resumed in coverage at Credit Suisse with an Outperform rating and a $575 price target. The consensus target for the venerable tech giant is $566.05. The stock closed Monday at $447.59.
Altria Group Inc. (NYSE: MO) was downgraded at Citigroup from Buy to Neutral with a $46 price target. The consensus target for the cigarette giant is $48.87. Monday’s closing trade came in at $49.84, which was up almost 3% on the day. With the shares knocking on the door of a 52-week high, this could be a valuation call.
AnaptysBio Inc. (NASDAQ: ANAB) was raised to Buy from Hold at Truist Securities. The shares have traded in a 52-week range of $12.06 to $355.85 and have a consensus price target of $26.75. The stock closed Monday at $19.81, down over 7% for the day. The stock rallied almost 6% in Tuesday’s premarket.
AstraZeneca PLC (NYSE: AZN) was raised to Buy from Hold at Jefferies. The pharmaceutical giant has traded in a 52-week range of $38.07 to $64.94 and has a consensus price target of $62.35. Monday’s last trade came in at $48.77.
Avis Budget Group Inc. (NYSE: CAR) was downgraded at Morgan Stanley from Overweight to Equal Weight with a $67 price objective. The consensus target is $59.83. The stock rose almost 5% on Monday to close at $72.04. This could be another valuation call as the stock is just below a 52-week high.
Bill.com Holdings Inc. (NYSE: BILL) was started with a Neutral rating and a $160 price target at Susquehanna. The consensus objective is $167.42, and Monday’s closing price was $158.86.
Crowdstrike Holdings Inc. (NASDAQ: CRWD) was resumed in coverage with a Neutral rating at Credit Suisse, which has a $115 price target for the cybersecurity leader. The consensus target is up at $235.33, and Monday’s close was at $200.55.
Despegar.com Corp. (NYSE: DESP) was raised from Sector Weight to Overweight with a $23 price target at Keybanc Capital Markets. The consensus target is $14.43, and Monday’s close was at $15.54. The shares traded almost 4% higher in the premarket.
D.R. Horton Inc. (NYSE: DHI) was started with an Outperform rating and a $94 target at Wolfe Research. The consensus target for the leading homebuilder is $95.47, and the stock closed Monday’s trading at $83.72, up almost 4% for the day.
IHeartMedia Inc. (NASDAQ: IHRT) was upgraded to Neutral from Underweight at JPMorgan, which raised the price target to $17. The consensus target for the broadcast and media giant is $15.33. The stock closed Monday at $16.87.
Innovative Industrial Properties Inc. (NYSE: IIPR) was named as the Zacks Bear of the Day stock. The firm said that this cannabis real estate investment trust has truly been innovative, but the party may be coming to an end. Shares last closed at $194.43 and have a consensus price target of $217.17.
Microsoft Corp. (NASDAQ: MSFT) was resumed in coverage at Credit Suisse with an Outperform rating and a $265 price target. That compares with the consensus of $272.71. The legacy software giant closed Monday at $234.81 per share.
New Fortress Energy Inc. (NASDAQ: NFE) was raised from Hold to Buy with a $50 price target at Stifel. The much higher $61.20 consensus target is well above Monday’s closing price of $42.48.
Portland General Electric Co. (NYSE: POR) was raised at Goldman Sachs from Sell to Neutral with a $49 price target. The consensus target is $46.45. Monday’s last trade was reported at $48.42.
Roblox Corp. (NYSE: RBLX) was started with a Buy rating and an $85 price target at Stifel. The kids and teens gaming giant had a recent initial public offering and has a lower $72.50 consensus target. The last trade Monday came in at $72.15, after a gain of almost 4% for the day.
Sabre Corp. (NASDAQ: SABR) was downgraded to Equal Weight from Overweight at Morgan Stanley, though the firm raised the price target to $18. The consensus target is much lower at $13.20, and the stock was last seen on Monday at $16.75, which was almost a 3% gain for the day.
Starbucks Corp. (NASDAQ: SBUX) was raised to Buy from Neutral at BTIG Research, which has a $130 price target for the ubiquitous coffee retailer. The consensus target is just $109.53. The stock was last seen on Monday at $108.90.
Ulta Beauty Inc. (NASDAQ: ULTA) was downgraded to Neutral from Buy at Guggenheim. The stock has traded in a wide 52-week range of $124.05 to $351 and has a consensus price target of $333.96. The final Monday trade was reported at $322.49 a share.
Zoom Video Communications Inc. (NYSE: ZM) was resumed in coverage at Credit Suisse with an Underperform rating and a $375 price target. The consensus target is much higher at $486.93. Monday’s last trade was reported at $350.
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Monday’s early top analyst upgrades and downgrades included Abercrombie & Fitch, Cabot Oil, Dollar General, L Brands, MGM Resorts, ViacomCBS and Unity Software. Analyst calls seen later in the day were on ConocoPhillips, Dow, Signet Jewelers and more.
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