The futures traded lower Tuesday after a rousing risk-on day to start the week turned into yet another so-so session. Friday’s big sell-off was the worst day for the markets since May 18th. All the major indexes closed modestly higher, but by the end of the trading day all had given up their big gains from the morning.
Strategists cited the improving situation in China as a major force behind the initial strength Monday, but the reality is that the Federal Reserve tightening will proceed unabated with 50-basis-point increases set for this month and July, and the distinct possibility for another 50-basis-point increase in September if there are signs that the rampant inflation, which remains at 40-year highs, has not dissipated.
The big selling Monday was seen in the Treasury markets, as yields moved higher across the curve. The five-year and 10-year notes, and the benchmark 30-year bond were all up well over the 3% mark. The big data point this week will be the consumer price index numbers for May that will come out on Friday. The consensus estimate calls for a reading of 8.3%, flat with April’s print.
Fortunately, oil closed flat, after marching higher last week, as Libya’s biggest oilfield resumed production, while natural gas resumed its parabolic move higher, closing up over 9%. Gold closed down, while Bitcoin soared almost 5% higher, closing near $31,000.
These are the top analyst upgrades, downgrades and initiations seen on Tuesday, June 7, 2022.
Autodesk Inc. (NASDAQ: ADSK): Goldman Sachs lowered its $210 price target on the shares to $185 while keeping a Sell rating. The consensus target is $257.88. Monday’s closing share price was $208.60.
Best Buy Co. Inc. (NYSE: BBY): Goldman Sachs cut the $96 price target on the retail giant to $82 while keeping a Sell rating. The consensus target is $94.71. Monday’s last trade came in at $79.27.
Big Lots Inc. (NYSE: BIG): Goldman Sachs lowered its $36 price target to $25 and kept a Sell rating on the stock. The consensus target is $28, and Monday’s final trade hit the tape at $23.81.
Cedar Fair L.P. (NYSE: FUN): Zacks selected this as its Bull of the Day stock, pointing out that revenue is at record levels through Memorial Day. Shares last closed at $47.95, and the consensus price target of $70.50 would be a 52-week high.
Cigna Corp. (NYSE: CI): Oppenheimer reiterated an Outperform rating on the health care heavyweight and has a $310 price target objective. The lower $291.17 consensus is closer to Monday’s closing print of $258.32.
Dun & Bradstreet Holdings Inc. (NYSE: DNB): RBC Capital Markets downgraded the stock to Sector Perform from Outperform but nudged the $16 price target up to $18. The consensus target is $20.09.
Exxon Mobil Corp. (NYSE: XOM) Evercore ISI raised its In Line rating on the energy giant to Outperform, and its $88 target price rose to $120. The consensus target is $96.93. Monday’s last trade was reported at $98.44.
Futu Holdings Ltd. (NASDAQ: FUTU): CLSA downgraded the shares from Underperform to Sell with a $27 target price. The consensus target is an insane $166.61. The stock closed Monday at $43.70, which was up almost 19% for the day. The company posted incredible results, with a 68% increase in paying clients.
GoodRx Holdings Inc. (NASDAQ: GDRX): BofA Securities resumed coverage with a Buy rating and an $11 target. The consensus price target is up at $12.24. The shares closed on Monday at $7.54.
GXO Logistics Inc. (NYSE: GXO): Barclays resumed coverage with an Equal Weight rating and a $60 target price. The $89.92 consensus target is much higher, and Monday’s closing print was $55.29.
Horizon Pharmaceuticals PLC (NASDAQ: HZNP): SVB Leerink resumed coverage with a Market Perform rating, and it has a $95 target price. The consensus target is up at $137.46. The shares were last seen Monday at $87.22, down almost 5% on the day.
24/7 Wall St.Lululemon Athletica Inc. (NASDAQ: LULU): Bernstein raised its Underperform rating to Market Perform after the company once again posted outstanding quarterly results. The firm has a very low $300 target, while the consensus target is $424.15. Monday’s closing share price was $301.62.
Merck & Co. Inc. (NYSE: MRK): SVB Leerink resumed coverage of the pharmaceutical giant with an Outperform rating and a $102 target price. The consensus target is $97.04. The final trade on Monday was at $89.84 a share.
Monster Beverage Corp. (NASDAQ: MNST): Morgan Stanley reiterated an Overweight rating and pushed the $111 price target up to $117. The consensus target is $100.79. The shares were last seen on Monday trading at $91.36.
MP Materials Corp. (NYSE: MP): Northland Capital resumed coverage with an Outperform rating and a $60 price objective. That compares with a much lower $48,59 consensus target and Monday’s closing print of $40.10, which was up close to 4% for the day.
Neurocrine Biosciences Inc. (NASDAQ: NBIX): Jefferies resumed coverage with a Buy rating but lowered the $126 price target to $112. The consensus target is in line at $112.48. The stock was last seen on Monday at $94.16.
Nike Inc. (NYSE: NKE): Stifel lowered the $160 price target for the athletic shoe and apparel giant to $150 while keeping a Buy rating. The consensus target is $162.55. The last trade on Monday was filled at $120.23.
Relay Therapeutics Inc. (NASDAQ: RLAY): Jefferies started coverage with an Underperform rating and a $13 target. The consensus target is a stunning $43.86 for now. The stock was hammered Monday, closing down over 13% on no negative news that we could source except the downgrade.
Selecta Biosciences Inc. (NASDAQ: SELB): SVB Leerink started coverage with an Outperform rating and a $7 target price. The consensus target is up at $7.83. The stock closed Monday at $1.00, which was up over 13% on no news.
Visa Inc. (NYSE: V): Oppenheimer maintained an Outperform rating for the credit card giant, and the stock remains a top pick. The $262 target price is a bit lower than the $268.05 consensus target. The closed on Monday was at $212.94.
Walmart Inc. (NYSE: WMT): Baird maintained an Outperform rating on the retail colossus and has a $155 price objective. The consensus target is $156.74. The last trade on Monday was reported at $124.87.
Winnebago Industries Inc. (NYSE: WGO): Pondering whether the golden age of RVs and boats is over, Zacks selected this stock as the Bear of the Day. Shares have traded as high as $80.30 in the past year but closed most recently at $49.96, which is down more than 33% year to date.
Eight Jefferies defensive picks with solid targeted capital allocation plans and the highest yields are dominant in their respective sectors and should continue to report solid earnings through 2022 and beyond.
J.P. Morgan has three stock picks with up to nearly 80% upside potential.
Monday’s early top analyst upgrades and downgrades included Bristol-Myers Squibb, Cheniere Energy, Chewy, Costco Wholesale, CrowdStrike, Exact Sciences, Lululemon Athletica, New York Community Bancorp, Okta, Physicians Realty Trust, Spotify Technology and Welltower. Analyst calls seen later in the day were on American Express, Aurora Cannabis, Edison International, Eli Lilly, PayPal, Upwork and more.
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