The futures were mixed on Tuesday as investors prepare for a huge week of first-quarter earnings, with more than a third of the S&P 500 expected to report. While the path of least resistance for the stock market seems to be higher, especially with the S&P 500 printing another all-time high Monday, many across Wall Street continue sounding concerns over the 43.4% capital gains tax and higher corporate taxes proposed by the Biden administration. In addition, the progressive calls for more unemployment spending are coming at a time when many companies are desperately trying to hire employees as the economy opens up.
The Federal Reserve pledges to keep interest rates contained could be among the reasons for the continued moves higher in the equity markets. It also should be noted 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, 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 Tuesday, April 27, 2021.
Airbnb Inc. (NASDAQ: ABNB): Needham started coverage with a Buy rating and $210 price target. The consensus target is just $188.26. The stock was last seen on Monday trading at $174.88.
Arena Pharmaceuticals Inc. (NASDAQ: ARNA): Citigroup started coverage with a Buy rating and a $104 price target. The posted consensus target is $97.23, and the stock closed Monday’s trading at $68.75.
Bank of Princeton (NASDAQ: BPRN): Boenning & Scattergood upgraded the stock to Outperform from Neutral and have a $33 price target. The consensus target is $33.33, and the stock closed Monday at $27.71.
Charles Schwab Corp. (NYSE: SCHW): Credit Suisse upgraded the shares to Outperform from Neutral and raised the price target to $86. The consensus target for the legacy discount brokerage is $78.10. Monday’s last trade came in at $67.77.