The futures traded lower for the third straight day on Wednesday, and despite an onslaught of positive earnings results and some excellent forward guidance so far, some external pressures are affecting an already very overbought market. A spike in the number of COVID-19 cases hit the travel industry this week. And while concerns over an outbreak of national protest after the George Floyd ruling had many investors on edge, at least for the time being things are calm after the verdicts.
Despite the near-term concerns, top strategists across Wall Street continue to point to the broad reopening of the economy, the tailwind from the stimulus package and those continued Federal Reserve pledges to keep interest rates contained as reasons for the continued moves higher in the equity markets. Also note that money markets continue to see massive inflows, which is another big plus.
With major Wall Street firms still warning of the potential for impending 5% to 10% correction across the board, and we may be seeing the beginning, it makes sense for investors to continue building some cash reserves into the market strength while repositioning portfolios for 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 Wednesday, April 21, 2021.
Archer Daniels Midland Inc. (NYSE: ADM): BofA Securities started coverage with a Buy rating and a $68 price target. The consensus price target is $59.18, and the stock closed Tuesday at $58.71.
AutoZone Inc. (NYSE: AZO): BofA Securities downgraded it from Neutral to Underperform with a $1,390 price target. The consensus target for the auto parts retailing giant is much higher at $1,486.06, and the stock closed on Tuesday at $1514.11.
Bally’s Corp. (NYSE: BALY): Jefferies started coverage with a Buy rating and a $66 price target. That compares with a much higher consensus target of $82 and Tuesday’s final trade of $54.98 a share.
Bonanza Creek Energy (NYSE: BCEI): Truist Securities raised its Hold rating to Buy and lifted the price target to $40 from $30. The consensus target is $43.57, and the last Tuesday trade was reported at $29.94, which was down over 7% on the day.