The futures traded higher on Tuesday, after starting the week with a big rally in which all the major indexes closed up on the day. All eyes remain focused on the Federal Reserve, which is expected to hike the federal funds rate by 50 basis points tomorrow. That will move the benchmark up to 4.25% to 4.50%. The November consumer price index numbers came in as expected, so all is aligned for tomorrow’s move.
While this is the last meeting of the year, the members of the committee will meet again at the end of January, when yet another hike is expected, but perhaps just by 25 basis points then. The terminal rate is expected to be over 5% when the Fed is done, and it could stay there until 2024.
Yields were up across the treasury curve on Monday as sellers finally returned after they had dropped back to their lowest levels since September. The yield on the two-year note closed back over 4.40%, keeping the inversion with the 10-year paper at the widest level in over four decades. Bond traders view the inversion between the two maturities as a recession signal.
Brent and West Texas Intermediate crude started the week with big moves higher, after uncertainty over supply helped to support prices after some steady selling last week pushed both benchmarks down to the lowest levels in a year. Natural gas also has a big day, closing up almost 8% as cold weather starts to settle in and exports are expected to rise. Gold and Bitcoin both finished Monday lower.
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, December 13, 2022.
Acadia Healthcare Inc. (NASDAQ: ACHC): Loop Capital upgraded the stock to Buy from Hold and bumped its $90 price target up to $95. The consensus target is $94. The stock closed on Monday at $82.95.
Accenture Inc. (NYSE: ACN): Piper Sandler downgraded the stock to Underweight from Neutral and has a $268 target price. The consensus target is higher at $314.72. The last trade on Monday was filled at $292.34.
Analog Devices Inc. (NYSE: ADI): Susquehanna started coverage with a Positive rating and a $205 target price. The consensus target is $191.80. The stock closed on Monday at $172.26.
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Apple Inc. (NASDAQ: AAPL): Oppenheimer reiterated an Outperform rating but lowered its $190 target price to $170. The consensus target is $178.15. The stock closed on Monday at $144.49.
Baxter International Inc. (NYSE: BAX): Citigroup’s downgrade to Neutral from Buy included a target price cut to $58 from $64. The consensus target is $63.70. The stock closed on Monday at $52.63.
Becton Dickinson and Co. (NYSE: BDX): Citigroup raised its Sell rating to Neutral and lifted its $221 target price to $250. The consensus target is $264.46. The shares closed on Monday at $254.06.
Best Buy Co. Inc. (NYSE: BBY): The Goldman Sachs upgrade to Neutral from Sell came with a price target hike to $83 from $59. That compares with the $82.67 consensus target and Monday’s close at $82.47.
Bio-Techne Corp. (NASDAQ: TECH): Citigroup upgraded the stock to Buy from Neutral and raised its $81.25 target price to $100. The consensus target is $103.74. The shares ended Monday’s session at $82.98.
Box Inc. (NYSE: BOX): J.P. Morgan upgraded the shares to Overweight from Neutral and bumped its $31 price target to $34. The consensus target is $33.22. The stock closed over 7% higher on Monday at $30.20 after the upgrade.
Brinker International Inc. (NYSE: EAT): The Goldman Sachs Neutral rating dropped to Sell, and the $31 target price is now $28. The consensus target is $33.59. The shares closed on Monday at $34.57.
Bumble Inc. (NASDAQ: BMBL): BofA Securities started coverage with a Buy rating and a $29 target price. The consensus target is $25.24. The stock closed on Monday at $23.48.
Coterra Energy Inc. (NASDAQ: CTRA): Truist Financial’s downgrade was from Buy to Hold with a $26 target price. The consensus target is up at $35.17. The stock closed on Monday at $24.85.
Emerson Electric Co. (NYSE: EMR): Citing slowing growth and falling earnings estimates, Zacks named this as its Bear of the Day stock. Shares have traded as high as $100 in the past year but were last seen changing hands for $96.15 apiece.
Glaukos Corp. (NYSE: GKOS): Citigroup upgraded the stock to Buy from Neutral and has a $57 target price objective. The consensus target is $60.56. The shares closed on Monday at $45.06.
Illumina Inc. (NASDAQ: ILMN): Citigroup’s downgrade to Sell from Neutral included a target price cut to $180 from $200. The consensus target is $250.22. Monday’s close was at $208.52.
Johnson Controls International PLC (NYSE: JCI): BofA Securities downgraded the stock to Neutral from Buy and lowered its $85 target price to $72. The consensus target is $69.53. Monday’s close was at $65.64.
Lam Research Corp. (NASDAQ: LRCX): Deutsche Bank upgraded the semiconductor capital equipment heavyweight to Buy from Hold. It also raised its $400 price target to $520, well above the $437.21 consensus target. Monday’s $464.30 close was up over 3% on the day.
Micron Technology Inc. (NASDAQ: MU): As Deutsche Bank downgraded the stock to Hold from Buy, the firm lowered its $60 target price to $55. The consensus target is higher at $66.37. The stock closed on Monday at $55.35.
Monday.com Ltd. (NASDAQ: MNDY): J.P. Morgan upgraded the stock to Overweight from Neutral, and it raised its $130 target price to $140. The consensus target is just $151.24. The stock closed on Monday at $114.35.
PerkinElmer Inc. (NYSE: PKI): Citigroup raised its Neutral rating to Buy and hiked its $135 price target to $170. The consensus target is set at $155.38. The shares closed Monday at $142.54.
Pulmonx Inc. (NASDAQ: LUNG): Though Citigroup upgraded the shares to Buy from Neutral, the firm lowered its $14 target price to $10. The consensus target is $13.07. The stock closed on Monday at $6.35, up 8% for the day on the upgrade.
Qualcomm Inc. (NASDAQ: QCOM): Wells Fargo downgraded the stock to Underweight from Equal Weight and has a $105 target price. The consensus target is up at $148.90. Monday’s close was at $121.21.
ShockWave Medical Inc. (NASDAQ: SWAV): Wells Fargo not only downgraded the stock to Equal Weight from Overweight but slashed its $300 target price to $235. The consensus target is $286.86. The stock closed almost 6% lower on Monday at $216.68.
Silvergate Capital Corp. (NYSE: SI): Wedbush reiterated an Outperform but lowered its $45 target price on the shares to $30. The consensus target is $50.55. Monday’s close was at $21.26.
Southern Co. (NYSE: SO): Wolfe Research upgraded the utility giant from Peer Perform to Outperform with a $76 target price. The consensus target is $68.88. The stock closed on Monday at $71.01, which was up almost 4% on the day.
Tapestry Inc. (NYSE: TPR): Goldman Sachs raised its Hold rating to Buy and lifted its $37 target price to $44. The consensus target is $43.52. The stock closed on Monday at $37.33.
24/7 Wall St.Teledyne Technologies Inc. (NYSE: TDY): Morgan Stanley upgraded the shares to Equal Weight from Underweight, and it boosted its $445 target price to $488, above the $478 consensus target. Monday’s $419.64 close was up almost 4% on the day.
Texas Pacific Land Corp. (NYSE: TPL): With shares of the Zacks Bull of the Day up more than 100% this year, the analyst ponders how much more room they have to run. The stock is up almost 38% in just the past 90 days and last closed at $2,516.62 a share.
Walt Disney Co. (NYSE: DIS): Morgan Stanley reiterated an Overweight rating, but it trimmed its $125 target price to $115. The consensus target is $126.29. The stock closed on Monday at $94.66.
After a big fall rally and with interest rates still rising, it makes sense now for investors to look for top value stocks with healthy and dependable dividends. Five look like solid portfolio additions for 2023 with outstanding total return potential.
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Monday’s early top analyst upgrades and downgrades included Accenture, Analog Devices, Baxter International, Best Buy, Coinbase Global, Johnson Controls, Lam Research, Micron Technology and Qualcomm. Analyst calls seen later in the day were on Coupang Software, DraftKings, Gap, Levi Strauss, Murphy Oil, Royal Gold, Ulta Beauty, Under Armour and more.
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