The futures were higher Tuesday, after a risk-off Monday that likely was a continuation of Friday’s huge move lower after the very hawkish commentary from Federal Reserve Chair Powell. The bottom line for investors (after Powell’s inflation line in the sand) is that the federal funds rate is likely to go 3.75% to 4.00% by December and likely will be sustained for all of 2023. Should the S&P 500 close below the 50-day moving average at 4,005, it is quite possible we could be looking at a decline to the 3,900 level.
Yields were higher across the Treasury curve as the sellers held serve on Monday, and it is a good bet they will continue to be active with August soon ending. The two-year and 10-year note inversion widened some Monday, with the latter closing at a 3.10% yield and the former at 3.43%. Bond market pros view the inversion as a recession signal.
Both Brent and West Texas Intermediate crude closed higher Monday, up 3.83% and 4.13%, respectively. Analysts cited the supply issues in Iraq and Libya, as well as OPEC’s recent threat to cut production. Natural gas closed modestly higher as well. Gold closed flat, while Bitcoin reversed midday to close up 3%, after sinking below the $20,000 level.
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 Tuesday, August 30, 2022.
Acuity Brands Inc. (NYSE: AYI): Oppenheimer reiterated its Outperform rating and $210 target price. The consensus target is $194.50. The shares closed on Monday at $168.74.
Antero Resources Corp. (NYSE: AR): Goldman Sachs raised its $43 price target on the Buy-rated stock to $48. The consensus target is $50.46. The stock closed on Monday at $42.05.
Apple Hospitality REIT Inc. (NYSE: APLE): Wells Fargo upgraded the stock to Equal Weight from Underweight and bumped the target price to $17 from $16. The consensus target is $20.00. Monday’s final trade was reported at $16.14.
Applied Materials Inc. (NASDAQ: AMAT): Goldman Sachs boosted its $95 target price to $109 and reiterated a Buy rating on the semiconductor equipment giant. The consensus target is $136.07. The stock closed at $96.54 on Monday.
Arcos Dorados Holdings Inc. (NYSE: ARCO): Goldman Sachs lifted its $9 target on the Buy-rated company to $10. The consensus target is $9.95. The shares closed on Monday at $7.72.
Bausch + Lomb Corp. (NYSE: BLCO): Goldman Sachs trimmed its $22 price target on the eyecare and products giant to $19. It also maintained a Neutral rating on the stock. The stock closed on Monday at $15.15.
Cardiff Oncology Inc. (NASDAQ: CRDF): Though Baird stayed with an Outperform rating, it cut the $9 target price to $6. The consensus is up at $12.67, and the stock closed on Monday at $2.47.
CrowdStrike Holdings Inc. (NASDAQ: CRWD): Jefferies reiterated a Buy rating on the cybersecurity leader. Its $215 target price is less than the $240.47 consensus figure. Monday’s close was at $192.05.
DiamondRock Hospitality Co. (NYSE: DRH): When Wells Fargo downgraded the shares to Equal Weight from Overweight, it also sliced the $11 price target to $10. The consensus target is $10.70, and the stock closed on Monday at $8.93.
Deciphera Pharmaceuticals Inc. (NASDAQ: DCPH): Cowen initiated coverage with an Outperform rating and a $25 target price. The consensus target is $14.78. The shares closed up over 6% on Monday at $15.76 due to the upgrade.
Envista Holdings Corp. (NYSE: NVST): The Piper Sanders upgrade to Overweight from Neutral included a price target hike to $46 from $40. The consensus target is $47.56. The stock closed on Monday at $37.20.
Frontier Group Holdings Inc. (NASDAQ: ULCC): Citigroup resumed coverage on the carrier with a Buy rating after its failed bid to buy Spirit Airlines. The analyst’s $20 target price compares with the $17.50 consensus target and Monday’s last trade at $12.71 a share.
General Dynamics Corp. (NYSE: GD): RBC Capital Markets initiated coverage with an Outperform rating and a $275 target. The consensus target for the defense giant is $264.38. The stock closed on Monday at $233.70.
Global Payments Inc. (NYSE: GPN): Baird reiterated an Outperform rating and has a $156 target price. The consensus target is $203.20. The last trade on Monday was for $124.82 per share.
Hain Celestial Inc. (NASDAQ: HAIN): Consumer Edge Research downgraded the stock to Equal Weight from Overweight. Its $23 target price is less than the $30.08 consensus target. The shares closed on Monday at $21.50.
IGM Biosciences Inc. (NASDAQ: IGMS): BofA Securities started coverage with a Buy rating and a $34 target price. The consensus target is up at $43.78. The stock closed on Monday at $18.96.
Life Storage Inc. (NYSE: LSI): As Evercore ISI downgraded the stock from Outperform to In Line, it also trimmed the $139 target price to $138. The consensus target is $153.80. The last trade for Monday was reported at $131.46.
Lululemon Athletica Inc. (NASDAQ: LULU): Jefferies reiterated an Underperform rating on the yoga apparel retailer and has a $200 target price. The consensus target is higher at $378.18. The shares were last seen Monday trading at $307.50.
MongoDB Inc. (NASDAQ: MDB): Baird reiterated an Outperform rating with a $360 target price. The consensus target is $386.69. The shares closed Monday at $332.02, which was down over 6% on the day.
Peloton Interactive Inc. (NASDAQ: PTON): Baird maintained an Outperform rating but lowered its $25 target price to $20. The consensus target is $19.41. The shares ended Monday’s session at $10.47.
Pinduoduo Inc. (NASDAQ: PDD): HSBC raised its Hold rating to Buy with a $93 target price. The consensus target is $78.89. The shares closed on Monday at $66.04, up almost 15% for the day, after posting a 36% revenue rise. The shares were up almost an additional 3% in premarket trading.
S&P Global Inc. (NYSE: SPGI): Oppenheimer reiterated an Outperform rating and boosted its target price to $419 from $404. The consensus target is $413.56. The stock closed at $361.00 on Monday.
Terminix Global Holdings Inc. (NYSE: TMX): This pest control service provider is the Zacks Bear of the Day. The analyst points out that the stock topped out all the way back in January 2021, well before the broader markets. Shares are down more than 5% year to date and closed most recently at $42.76.
Unity Software Inc. (NYSE: U): Oppenheimer reiterated an Outperform rating with a $60 target. The consensus target is $55.41. The company, which is trying to buy AppLovin, saw its stock close on Monday at $44.43.
Veeva Systems Inc. (NYSE: VEEV): Baird reiterated an Outperform rating and a $267 price target in front of this week’s earnings report. The consensus target is $233.19. Monday’s final trade was at $203.20 a share.
Westlake Corp. (NYSE: WLK): KeyBanc Capital Markets lowered its Equal Weight rating to Underweight with a $90 target price. The consensus target is $120.00. Monday’s $102.67 close was down over 4% for the day.
The bear market rally that started in June is over and it is clearly a time to move to safer dividend stocks. Eight outstanding health care stocks make sense for worried investors now as they are resistant to inflation or recession fears.
See what analysts are saying about Tesla after its stock split. And with two months left in hurricane season, how do things stand for Gulf oil and gas production?
Monday’s early top analyst upgrades and downgrades included Affirm, AstraZeneca, Broadcom, Centene, Dell Technologies, Dollar General, Marvell Technology, Medical Properties Trust, Tesla, Ulta Beauty, Union Pacific and Workday. Analyst calls seen later in the day were on Aerie Pharmaceuticals, Dow, Host Hotels & Resorts, LyondellBasell Industries, Park Hotels & Resorts and more.
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