The futures were mixed on Tuesday morning as investors and traders return from the long holiday weekend. Typically the first two weeks of July are among the best in the year, and after a blazing start to the third quarter, and Friday’s better than expected June jobs report, views are mixed on whether the strength will continue or the market is poised for a rest.
Despite the concerns across Wall Street about tapering of the quantitative easing program and a clear building of inflationary pressures, the Federal Reserve is vowing to keep interest rates contained. That could be among the reasons for the continued moves higher in the equity markets even after sell-offs. 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 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, July 6, 2021.
ABB Ltd. (NYSE: ABB): Deutsche Bank raised the stock to Hold from Sell. The stock has traded in a 52-week range of $24 to $35.28 and has a $36.94 consensus price objective. The shares closed on Friday at $34.52.
American Express Co. (NYSE: AXP): Goldman Sachs raised the shares of the financial leader to Buy from Neutral and has a $225 price target. The consensus target price is much lower at $156.68. The shares were last seen on Friday at $168.50. The stock was up almost 3% in premarket trading.
Arthur J. Gallagher & Co. (NYSE: AJG): Atlantic Equities initiated coverage with an Overweight rating and a $175 price target. The lower $155 consensus price objective is closer to Friday’s final trade at $140.30.
Axcella Health Inc. (NASDAQ: AXLA): H.C. Wainwright started coverage with a Buy rating and a $14 price target. The consensus target is $15.29. While the stock closed Friday at $3.97, the shares were up a stunning 27% in Tuesday’s premarket. Last week the company announced that it has activated initial clinical sites and patient screening for its global Phase 2 clinical trial of AXA1665, the company’s multi-targeted oral product candidate for the reduction in risk of recurrent overt hepatic encephalopathy.