Markets were somewhat mixed to start out the week. Following the opening bell, the S&P 500 and Dow Jones industrials were each barely positive, while the Nasdaq was just barely negative. All this comes ahead of the Federal Reserve’s highly anticipated interest rate increase and inflation data coming later this week.
First things first. The Fed begins its last two-day policy meeting for the year, in which it is highly likely to decide to increase interest rates. Many have supposed, including Fed Chair Powell, that the Fed will be raising rates by 50 basis points, as opposed to the 75-basis-point hikes we have seen in previous months. While this slowing of rate increases is a positive signal for markets in general, others have supposed that the Fed is slow to act yet again and that there should be no more rate increases for the time being. The idea is that inflation will resolve itself within the current high-rate environment.
In order to see if inflation actually will resolve itself, analysts are looking to figures like the consumer price index (CPI) that is coming out later this week. There has been a marked increase in the CPI year over year for the past few months, but it has been falling off recently, signaling these rate hikes are working. In the meantime, analysts are forecasting a 7.3% print in CPI for November, a decrease from the 7.7% increase in October.
Again, investors and analysts alike will not know for sure if the Fed should be more hawkish or dovish on rates until later on down the line, or even if this will influence a potential recession in 2023. For now, this is just speculation.
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 included Best Buy, Coinbase, Lam Research, Micron, Qualcomm and more.
Acadia Healthcare Co. Inc. (NASDAQ: ACHC): Loop Capital upgraded the stock to Buy from Hold and raised its $90 price target to $95. The 52-week trading range is $50.07 to $89.85. Shares changed hands near $82 apiece on Monday.
Coupang Software Inc. (NASDAQ: COUP): SMBC Nikko’s upgrade was to Outperform from Neutral. The shares traded near $78 on Monday. The 52-week range is $40.29 to $166.21.
DraftKings Inc. (NASDAQ: DKNG): Roth Capital downgraded the shares from Buy to Neutral with a $15 price target. The shares traded near $14 on Monday. The 52-week range is $9.77 to $30.71.
Gap Inc. (NYSE: GPS): Goldman Sachs raised its Neutral rating to Buy with an $18 price target. The stock traded near $14 on Monday, in a 52-week range of $7.79 to $19.06.
Levi Strauss & Co. (NYSE: LEVI): The Buy rating at Goldman Sachs dropped to Neutral with a $17 price target. The stock was last seen trading near $16, in a 52-week range of $13.57 to $25.37.
Murphy Oil Corp. (NYSE: MUR): Truist downgraded the stock to Hold from Buy and has a $46 price target. Shares have traded as high as $51.29 in the past year but were changing hands near $41 on Monday.
RH (NYSE: RH): Goldman Sachs downgraded it to Sell from Neutral. It cut its $227 price target to $215 as well. The stock has traded as high as $613.00 a share in the past year but was last seen at around $257. That is down nearly 49% year to date.
Royal Gold Inc. (NASDAQ: RGLD): Credit Suisse resumed coverage with a Neutral rating and a $120 price target. The stock has traded as high as $147.70 in the past year but was last seen near $109. That is up 5% year to date.
Spire Inc. (NYSE: SR): The BofA Securities downgrade to Underperform from Neutral included a price target cut to $61 from $78. The 52-week trading range is $61.52 to $79.24. Shares changed hands near $67 apiece on Monday.
Ulta Beauty Inc. (NASDAQ: ULTA): Goldman Sachs downgraded the shares to Neutral from Buy and cut its $511 price target to $508. The stock traded near $467 on Monday, in a 52-week range of $330.80 to $482.69.
Under Armour Inc. (NYSE: UAA): Stifel’s upgrade to Buy from Hold came with a price target hike to $12 from $9. Shares traded near $10 on Monday, in a 52-week range of $6.38 to $23.74.
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