The futures were mixed to start off the new trading week, after Friday’s risk-on rally that saw all the major indexes finish the day higher. Top financial media pundits cited the selling for most of the week as an issue, as much of the buying appears to be of the short-covering variety. With the Federal Reserve meeting now just nine days away, and at least another 25-basis-point increase on tap, more and more are expecting that, at the minimum, a mild recession is on the way.
Treasury yields were higher across the curve, as the sellers returned after massive buying earlier in the week and drove the yield on the 10-year note down to the lowest level in four months. Even with the selling pressure, the 10-year closed at 3.47%, which keeps the inversion to the two-year paper in place as it closed Friday at 4.18%.
Brent and West Texas Intermediate crude both finished the day and the week higher, as the two benchmarks finished with a second straight weekly gain after some big selling to start the year. Once again, energy analysts cited the prospect of a resurgence in demand from China as a reason for the strength. In addition, the rig count in the United States saw the largest weekly drop in the past 16 months.
Natural gas finished the day lower at $3.22, as warmer weather in Europe continues to tamp down demand. Natural gas has seen some mammoth price swings over that past year, and some across the energy sector feel it may be a very solid trade to put on now. Gold finished Friday lower, while Bitcoin closed up over 1%, keeping the cryptocurrency over the $21,000 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 Monday, January 23, 2023.
Advanced Micro Devices Inc. (NASDAQ: AMD): Goldman Sachs reiterated a Buy rating and has an $85 target price. The consensus target is $91.01, and shares closed almost 4% higher on Friday at $70.07.
Allstate Corp. (NYSE: ALL): BMO Capital Markets initiated coverage with a Market Perform rating and a $130 target price. The consensus target is $147.07. The stock closed on Friday at $125.65.
Delek US Holdings Inc. (NYSE: DK): Piper Sandler downgraded the shares to Neutral from Overweight and cut its $49 target price to $32. The consensus target is $33.55. The stock closed on Friday at $26.34.
Domo Inc. (NASDAQ: DOMO): Morgan Stanley’s downgrade to Equal Weight from Overweight included a target price cut to $16 from $24. The consensus target is $25 for now. The stock closed over 4% lower on Friday at $12.33 after the downgrade.
Dover Corp. (NYSE: DOV): Oppenheimer reiterated an Outperform rating with a $164 target price. The consensus target is just $150.40. The stock closed on Friday at $139.34.
Global Payments Inc. (NYSE: GPN): Truist Finance reiterated a Buy rating and raised its $120 price objective to $135. The consensus target is $142.89. Positive Wall Street comments had the stock up almost 4% at $111.94 on Friday’s close.
GoDaddy Inc. (NYSE: GDDY): Truist Financial reiterated a Buy rating with a $100 price target. The consensus target is $94.31. The stock saw almost a 3% gain on Friday’s close at $80.04.
Huntington Ingalls Industries Inc. (NYSE: HII): Nuclear-powered ships and subs do not always translate to nuclear earnings trends, says Zacks about its Bear of the Day stock. Shares closed most recently at $218.10, after retreating more than 19% from a 52-week high of $260.02 back in November.
LCI Industries (NASDAQ: LCII): Jefferies downgraded the stock to Hold from Buy and lowered its $120 target price to $95. The consensus target is $126.89. Friday’s close at $103.14 was down close to 4% on the day, likely on the downgrade.
Lululemon Athletica Inc. (NASDAQ: LULU): Jefferies reiterated a Sell rating with a $200 target price. That compares with the $381.34 consensus target and Friday’s closing print of $312.80.
Mastercard Inc. (NYSE: MA): Truist Financial raised its $400 price target on the Buy-rated shares to $450. The consensus target is $404.64. The final trade Friday hit the tape at $376.28.
Mosaic Co. (NYSE: MOS): Citigroup cut its Buy rating to Neutral and lowered its $61 target price to $50. The consensus target is $58.78. The stock closed on Friday at $48.
Netflix Inc. (NASDAQ: NFLX): Goldman Sachs reiterated a Sell rating but raised its $225 target price to $230. Oppenheimer reiterated an Outperform rating and boosted its price target to $415 from $400, while Jefferies reiterated a Buy rating and its $385 target price rose to $400. The consensus target is $$319.50. The stock closed on Friday over 8% higher at $342.50, after posting results for the quarter that beat earnings estimates and expectations for new subscribers.
Nordstrom Inc. (NYSE: JWN): Gordon Haskett downgraded the luxury retailer to Reduce from Hold and lowered its $20 price target to $13. The consensus target is $19.81. The stock closed on Friday at $17.47.
PagerDuty Inc. (NYSE: PD): Morgan Stanley raised its Equal Weight rating to Overweight. It also lifted its $32 target price to $36, while the consensus target is $32.10. Friday’s $27.86 close was 6% higher for the day on the upgrade.
Par Pacific Holdings Inc. (NYSE: PARR): The Neutral rating at Piper Sandler was boosted to Overweight, and the firm’s$27 price target is now $33. The consensus target is $27.50. The shares were last seen Friday at $26.61, up over 8% for the day on the upgrade.
Pinterest Inc. (NYSE: PINS): MKM Partners downgraded the stock to Neutral from Buy and has a $27 target. The consensus target is $27.92. The stock closed on Friday at $26.60.
PVH Corp. (NYSE: PVH): The Barclays upgrade to Overweight from Equal Weight came with a target price hike to $106 from $72. The consensus target is $78.94. The shares closed almost 4% higher on Friday at $86.47.
Ralph Lauren Corp. (NYSE: RL): Barclays upgraded the stock to Overweight from Equal Weight and boosted its $101 price target to $134. The consensus target is $116.08. The shares closed on Friday at $121.02.
Regeneron Pharmaceuticals Inc. (NASDAQ: REGN): J.P. Morgan’s upgrade was from Neutral to Overweight with an $850 target price. The consensus target is just $809.08. The stock closed on Friday at $723.05.
Restaurants Brands International Inc. (NYSE: QSR): As BMO Capital Markets upgraded the stock to Outperform from Market Perform, it raised its $63 price target to $72, above the $68 consensus target. The stock closed at $66.85 on Friday.
Travelers Companies Inc. (NYSE: TRV): BMO Capital Markets started coverage with an Outperform rating and a $212 target price. The consensus target is $194.56. The last trade on Friday came in at $185.33.
Truist Financial Corp. (NYSE: TFC): Goldman Sachs raised its $50 target price on the Buy-rated shares to $55. The consensus target is $51.29. The stock closed on Friday at $47.92.
United Rentals Inc. (NYSE: URI): Zacks named this rental construction equipment stock as its Bull of the Day. The analyst points out that its surging earnings are bucking the trend. The stock last closed at $383.67 a share, and the $401.47 consensus target would be an all-time high.
The collapse of long rates is a rather good sign that the bond market thinks the economy will face a recession at some point this year. See which seven big-dividend stocks look like solid ideas for conservative growth and income investors now.
Friday’s top analyst upgrades and downgrades included Alcoa, Charles Schwab, Cognizant Technology Solutions, IBM, Newmont, Okta, Philip Morris International, Roblox, Shopify, Teva Pharmaceutical Industries, Texas Instruments and Transocean.
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