Wednesday's Top Analyst Upgrades and Downgrades: Costco, GE, JPMorgan, Royal Caribbean, Schlumberger, United Airlines, Walmart and More

The futures traded lower on Wednesday, after another risk-off day across Wall Street in which all the major indexes posted big losses. The Nasdaq led the way with a 2% retreat. Despite some reasonably good economic data recently, like from the ISM on Monday and last week’s bigger-than-expected jump in nonfarm payroll additions, the sellers ruled the day again.

The continued economic strength has some across Wall Street concerned that the terminal or final federal funds rate could end up higher than the expected 5.00% to 5.25% and that rate may be in place longer than now anticipated. With earnings also expected to be lower, that may lead to more selling.

Interest rates across the Treasury curve initially roared higher again on Tuesday, before reversing late morning. The continued weakness in the equity market could once again be pushing portfolio managers back to the safe haven of government bonds. The two-year and 10-year note inversion spread remained at 40-year highs, with the 10-year closing at 3.51% and the short paper at 4.37%.

Consumers looking to travel for the holiday will continue to cheer lower oil prices, as Brent and West Texas Intermediate crude both finished the day lower after the EU embargo on imports of Russian crude oil by sea came into effect Monday. The EU announced last June it would ban Russian seaborne crude oil imports starting on December 5 and refined oil products from February 5 as part of its sixth sanctions package against Russia. Natural gas also ended the day lower, while both gold and Bitcoin closed higher Tuesday.

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 Wednesday, December 7, 2022.

Aerovate Therapeutics Inc. (NASDAQ: AVTE): BTIG Research upgraded the shares to Buy from Neutral and has a $27 target price. The consensus target is $26.33. The last trade on Tuesday was reported at $18.03.

Array Technologies Inc. (NASDAQ: ARRY): Wells Fargo started coverage with an Overweight rating and a $28 target price. The consensus target is $27.08 for now. The stock closed almost 7% lower on Tuesday at $20.40.

Boston Beer Co. Inc. (NYSE: SAM): Deutsche Bank downgraded the stock to Sell from Hold, and its $315 target price ticked up to $316. The consensus target is $331.11. The shares closed at $359.92 on Tuesday, which was down over 5% on the day.

Conagra Brands Inc. (NYSE: CAG): Deutsche Bank cut its Hold rating to Sell but nudged its $33 price target up to $34. The consensus target is $37.25. The stock closed on Tuesday at $37.56.

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