The futures were mixed on Monday after investors cheered a substantial Friday risk-off rally that saw all the big indexes close in positive territory and the S&P 500 printing yet another all-time closing high. The big story this week is the start of the second-quarter earnings season, and many across Wall Street are expecting not only some sensational numbers, which some are attributing to the reopening of the economy across America, but also some very positive forward guidance for the third quarter and the rest of 2021. With comparisons against some very weak 2020 COVID-19-related numbers, strong results and solid guidance seem very possible.
Despite the added 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. 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, 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 Monday, July 12, 2021.
Affiliated Managers Group Inc. (NYSE: AMG): Deutsche Bank upgraded the shares to Buy from Hold and also raised the price target to $202 from $167. The consensus target price is much lower at $175.13. The stock closed trading Friday at $176.78, which was up almost 4% for the day.
Alarm.com Holdings Inc. (NASDAQ: ALRM): Barclays initiated coverage with an Equal Weight rating and a $100 price target. The consensus price objective is $107.50. The stock closed Friday at $86.87.
AST SpaceMobile Inc. (NASDAQ: ASTS): Barclays started coverage of the stock with an Outperform rating and a $29 price target. That compares with the $35 consensus target and Friday’s closing print of $12.76. The stock was up almost 10% in the premarket.