The futures traded higher on Thursday, after a big risk-off day on Wall Street when all the major indexes posted solid gains. Most of Wall Street was focused on the Federal Reserve minutes, and while the release added some new color, the most promising was that the Fed appears flexible on interest rate hikes going forward and they could come faster. That noted, the upcoming 50-basis-point rate hikes for June and July have been factored in already.
Strategists have indicated that some positives for the risk-on crowd include the very poor investor sentiment. The peak inflation narrative, which basically says we are close to or perhaps even at the top of the huge price increases in energy and food, may have helped to provide a tailwind. That narrative may very well be wishful thinking.
Treasury yields were flat across the curve, as the rush to the safe-haven securities subsided. Brent and West Texas Intermediate crude were slightly higher on the day, but the meteoric rise of natural gas continued with the commodity closing over the $9 level for the first time since 2008. While gold closed lower, Bitcoin was modestly higher.
24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding fresh 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 Thursday, May 26, 2022.
Agilent Technologies Inc. (NYSE: A): Goldman Sachs maintained a Buy rating on the stock and has a $170 target price. The shares have traded as high as $179.57 in the past year but closed most recently at $120.38, down over 3% on Wednesday after reporting just inline results.
Align Technology Inc. (NASDAQ: ALGN): This medical device maker was selected as the Zacks Bear of the Day. The analyst suggests that bears continue to show big smiles when looking at this stock. Shares have traded as high as $737.45 in the past year but closed most recently at $276.57, which is down about 58% year to date.
Apple Inc. (NASDAQ: AAPL): Though Loop Capital reiterated a Buy rating on the technology heavyweight, it cut its $210price objective to $180. The consensus target is $189.73. The stock closed on Wednesday at $140.52.
Best Buy Inc. (NYSE: BBY): Goldman Sachs lowered its $96 price target on the electronics retail leader to $82 while keeping a Sell rating on the shares. The consensus target is up at $107.86. The stock closed almost 9% higher on Wednesday to $80.06. The company acknowledged during its earnings call this week that its road ahead could be difficult.
Casey’s General Stores Inc. (NASDAQ: CASY): Wells Fargo started coverage with an Overweight rating and a $240 price target. The consensus target is $237. The stock closed at $203.03 on Wednesday.
CME Group Inc. (NASDAQ: CME): Oppenheimer upgraded the shares from Perform to Buy with a $223 target. The consensus is at $250.31. The stock closed on Wednesday at $195.43.
Coinbase Global Inc. (NASDAQ: COIN): Cowen started coverage with an Outperform rating and an $85 price objective. The consensus target for the cryptocurrency trading broker is much higher at $159.14. The stock closed nearly 10% higher on Wednesday at $67.17.
Columbus McKinnon Corp. (NASDAQ: CMCO): Craig Hallum’s downgrade was to Hold from Buy, and it slashed the $60 price target to $35. The consensus target is $63 for now. The stock closed almost 4% lower on Wednesday at $31.68.
CrowdStrike Holdings Inc. (NASDAQ: CRWD): Stephens started coverage of the cybersecurity heavyweight with an Overweight rating and a $232 target price. The consensus target is $254.10. Wednesday’s $146.64 per share close was up almost 5% on the day.
Equitable Holdings Inc. (NYSE: EQH): J.P. Morgan raised its Neutral rating to Overweight and has a $36 price objective. The consensus target is $42.91. The stock ended trading on Wednesday at $29.46.
Generac Holdings Inc. (NYSE: GNRC): Northland Capital started coverage of the home generator powerhouse with an Outperform rating and a $370 target price. That compares with a $387.69 consensus and the $231.22 close on Wednesday, which was up over 7% for the day.
Intuit Inc. (NASDAQ: INTU): Goldman Sachs reiterated a Buy rating after the company posted stellar results. The analyst’s $615 target price compares with a $597.33 consensus price objective and Wednesday’s closing print of $388.45, which was up over 8% on the day.
Kilroy Realty Corp. (NYSE: KRC): Though Goldman Sachs upgraded the stock to Buy from Neutral, the firm trimmed the $87 target price to $84. The consensus target is $81.64. The stock was last seen on Wednesday trading at $60.86.
24/7 Wall St.Lululemon Athletica Inc. (NASDAQ: LULU): Morgan Stanley upgraded the yoga and athletic apparel leader to Overweight from Equal Weight but lowered the $339 target price to $303. The consensus target is up at $425.48. The shares closed at $260.66 on Wednesday.
Malibu Boats Inc. (NASDAQ: MBUU): Zacks named this the Bull of the Day stock. The analyst makes a case that bulls are testing the waters for this boat maker. The stock last closed at $57.77 a share, and the consensus price target of $88.11 would be an all-time high.
Murphy USA Inc. (NASDAQ: MUSA): Wells Fargo initiated coverage with an Equal Weight rating and a $230 target price. The consensus target is $240.75. The stock closed on Wednesday at $244.57.
Okta Inc. (NASDAQ: OKTA): Goldman Sachs chopped the $250 price target on the Buy-rated shares to $165. The consensus target is $205.99. The shares closed up almost 5% on Wednesday at $82.57.
Petco Health and Wellness Co. Inc. (NASDAQ: WOOF): Baird reiterated an Outperform rating but lowered the $25 price target to $21. The consensus target is $23.67. The shares closed on Wednesday at $15.24.
Porch Group Inc. (NASDAQ: PRCH): Compass Point started coverage with a Buy rating and an $11.50 target. The consensus target is $11.72. The shares closed almost 6% higher on Wednesday at $4.07.
Sabra Health Care REIT Inc. (NASDAQ: SBRA): Mizuho raised the stock to Buy from Neutral, but it trimmed its $16 target price to $15. The consensus target is $15.73. The shares closed on Wednesday at $13.96, which was up close to 5% for the day.
ServiceNow Inc. (NYSE: NOW): Goldman Sachs reiterated a Buy rating on the stock, which is on its Conviction List of top picks, after the company posted outstanding quarterly results. The firm’s $752 price target is well above the $644.83 consensus target and Wednesday’s close at $452.29, which was up almost 8% on the day.
Teladoc Health Inc. (NASDAQ: TDOC): Though Goldman Sachs reiterated a Buy rating, it slashed its $77 price objective to $55. The consensus target is $64.84. The shares closed almost 3% higher on Wednesday at $31.66.
Toast Inc. (NYSE: TOST): Baird reiterated an Outperform rating and has a $25 price objective. The consensus target is $24.31. The final trade for Wednesday was for $14.95 a share.
Univar Solutions Inc. (NYSE: UNVR): Wells Fargo upgraded the stock to Overweight from Equal Weight and lifted the price objective to $36 from $30. The consensus target is $36.65. The last trade on Wednesday was posted at $29.53.
VNET Group Inc. (NASDAQ: VNET): The Goldman Sachs upgrade was to Neutral from Sell. Its $6.50 target price is well below the $14.01 consensus figure. The stock closed on Wednesday at $4.70.
Given the market’s nervousness, Stifel’s strategy now is to go with defensive value stocks. Nine outstanding picks fit the bill, as they are Buy-rated across Wall Street and pay dependable dividends.
Also, see which five gig economy stocks could thrive in a recession and which five cryptocurrency exchanges are the safest for investors.
24/7 Wall St.Wednesday’s early top analyst upgrades and downgrades included Albemarle, Camping World, eBay, EOG Resources, Etsy, Global Payments, IMAX, JPMorgan, MetLife, Otis Worldwide, Salesforce, Wayfair and Zillow. Analyst calls seen later in the day were on Air Products and Chemicals, Amyris, Best Buy, CME, Diamondback Energy, Fisker, Magellan Midstream Partners, 2U and more.
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