What the Fed Is Setting Up for Wednesday: Analysts Upgrade or Downgrade ConocoPhillips, Netflix and More

Markets kicked off the week on a negative note, but they were slowly recovering over the course of the morning. This comes after each of the major averages posted its worst trading week in the past quarter. Note that the consumer price index (CPI) inflation print from last week played heavily into this downturn.

Looking ahead this week, the Federal Reserve’s two-day monetary policy meeting is on Tuesday and Wednesday. This is expected to conclude on Wednesday afternoon with yet another interest rate hike in the ballpark of 75 basis points. However, some analysts are anticipating higher rate hikes in a more rapid succession as inflation is not abating quickly enough.

All this is contributing to the sentiment that markets are in a recession or that it is quickly approaching. Recent earnings data may reinforce what the economists are saying regarding CPI, inflation and the Fed. All this makes for a stock-picker’s market.

Here, 24/7 Wall St. is reviewing additional analyst calls seen on Monday. We have included the latest call on each stock, as well as a recent trading history and the consensus targets among analysts. Note that analyst calls seen earlier in the day were on Adobe, Coinbase, FedEx, McDonald’s, Roblox and more.

Array Technologies Inc. (NASDAQ: ARRY): Piper Sandler upgraded the stock to Overweight from Neutral and raised its $20 price target to $28. The shares traded near $19 on Monday. The 52-week range is $5.45 to $27.67.

ConocoPhillips (NYSE: COP | COP Price Prediction): BofA Securities reiterated a Buy rating and raised its $134 price target to $140. The shares traded near $112 on Monday. The 52-week range is $56.30 to $124.08.

EQT Corp. (NYSE: EQT): BMO Capital Markets raised its Market Perform rating to Outperform and hiked the price target to $65 from $50. BofA Securities reiterated a Buy rating and raised its $72 price target to $74. Shares have traded as high as $51.97 in the past year but were near $47 on Monday, which is actually up about 111% year to date.

KB Home (NYSE: KBH): KeyBanc Capital Markets upgraded the shares to Sector Weight from Underweight. They traded near $29 on Monday, in a 52-week range of $24.78 to $50.20.

Lennar Corp. (NYSE: LEN): The KeyBanc Capital Markets upgrade was from Underweight to Overweight with an $89 price target. The 52-week trading range is $62.54 to $117.54, and the share price was near $78 on Monday.

NetApp Inc. (NASDAQ: NTAP): Susquehanna downgraded it to Neutral from Positive and cut its $100 price target to $75. The stock was last seen trading near $68, in a 52-week range of $61.26 to $96.82.

Netflix Inc. (NASDAQ: NFLX): Oppenheimer resumed coverage with an Outperform rating and a $325 price target. The 52-week trading range is $162.71 to $700.99. Shares changed hands near $241 apiece on Monday.

Super Micro Computer Inc. (NASDAQ: SMCI): Susquehanna’s downgrade was from Positive to Neutral with a $55 price target. Shares traded near $58 on Monday, in a 52-week range of $34.11 to $74.93.

Verona Pharma PLC (NASDAQ: VRNA): Wedbush resumed coverage with an Outperform rating and a $27 price target. On Monday, shares traded near $10, within the 52-week range of $3.41 to $14.69.

Zillow Group Inc. (NASDAQ: ZG): Compass Point initiated coverage with a Buy rating and a $50 price target. Shares traded near $34 on Monday. The 52-week range is $28.76 to $105.85.

After four losing weeks in a row for the stock market, and with a host of recession warning signs flashing, it makes sense for investors to play it safe. Seven top utilities stocks have very dependable dividends and might be just the place to ride out the storm.

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