The futures traded lower as we get set to wrap up a wild trading week that saw some big follow-through tech buying after Meta Platforms posted strong earnings, while announcing a big stock buyback and cost-cutting initiatives. Though the Nasdaq was up almost 3% and the S&P 500 posted over a 1% gain on Thursday, the Dow Jones industrials lagged, closing down on weakness in United Health and insurance giant Travelers.
Yields across the Treasury curve were lower again on Thursday, as bond traders snapped up more government debt. The yield on the benchmark note has dropped a stunning 53 basis points in just over a month and closed at 3.40%. While the two-year yield has fallen as well, the short paper ended Thursday at 4.07%, the inversion remaining firmly in place. Bond traders view the anomaly as a recession sign.
Brent and West Texas Intermediate crude both finished the day modestly higher, as OPEC’s January production dropped after Saudi Arabia reportedly cut production by 100,000 barrels per day. Natural gas was the big winner, closing up almost 4% as frigid temperatures continued across much of the United States. Gold finished the day down almost 2% at $1,917, while Bitcoin was last seen up and closing in on the $24,000 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 Friday, February 3, 2023.
Align Technology Inc. (NASDAQ: ALGN): As Goldman Sachs upgraded the stock to Neutral from Sell, its $165 price target jumped all the way to $307. The consensus target is just $233.22, much lower than Thursday’s $359.88 close, which was almost 28% higher on the day in the wake of stellar results.
Ashland Inc. (NYSE: ASH): Though J.P. Morgan lowered its Neutral rating to Underweight, the analyst nudged the $104 target price up to $105. The shares closed Thursday’s session at $107.62.
Darden Restaurants Inc. (NYSE: DRI): Guggenheim initiated coverage on the stock with a Buy rating and a $170 target price. The consensus target is $155.24. The stock closed on Thursday at $147.92.
ELF Beauty Inc. (NYSE: ELF): J.P. Morgan reiterated an Overweight rating and raised its $65 target price to $70. D.A. Davidson maintained a Buy rating, but its $54 price target jumped to $77. The stock was the Zacks Bull of the Day as well. The consensus target is $58.90. Thursday’s $67.29 close was a one-day gain of 15% in the wake of an outstanding quarterly report.
Everest Re Group Ltd. (NYSE: RE): Raymond James started coverage with an Outperform rating and a $385 target price. That compares with the $395.33 consensus target and Thursday’s closing share price of $341.43.
FedEx Corp. (NYSE: FDX): Citigroup’s upgrade to Buy from Neutral included a target price hike to $240 from $190. The consensus target is $195.93. The stock closed over 6% higher on Thursday at $214.52 on management and headcount cuts.
First Solar Inc. (NASDAQ: FSLR): BofA Securities downgraded the stock to Neutral from Buy. The analyst also trimmed the $196 target price to $195, well above the $173.03 consensus target. Thursday’s close at $168.67 was down almost 7% for the day on the downgrade.
Fortinet Inc. (NASDAQ: FTNT): BMO Capital Markets downgraded the stock to Market Perform from Outperform and lowered its $58 target price to $57. The consensus target is $64. The stock closed almost 2% higher on Thursday at $53.85.
Globant S.A. (NYSE: GLOB): HSBC Securities initiated coverage with a Buy rating and a $240 price target. The consensus is $236.60. The stock closed trading Thursday at $178.26, a gain of close to 7% on the positive analyst coverage.
GXO Logistics Inc. (NYSE: GXO): Exane BNP Paribas’s downgrade was from Neutral to Underperform with a $45 target price. The consensus target is $59.19. The shares ended Thursday trading at $55.41 apiece.
Hasbro Inc. (NASDAQ: HAS): Citing cost-cutting and a weakening outlook, Zacks selected this toy maker as its Bear of the Day stock. Its shares have traded as high as $105.13 in the past year but closed most recently at $63.25. That is down more than 19% in the past six months.
Ingevity Corp. (NASDAQ: NGVT): Loop Capital upgraded the stock to Buy from Hold. It also raised its $81 target price to $100, but the consensus target is up at $195.93. Thursday’s close at $86.95 was up close to 5% for the day on the upgrade.
Meta Platforms Inc. (NASDAQ: META): Piper Sandler boosted its Neutral rating to Overweight and its $136 target price to $215. The Neutral rating at BofA Securities is now at Buy, and the target price increased to $220 from $160. Rosenblatt’s upgrade to Buy from Neutral included a price objective bump from $104 to $220. The consensus target is $157.85 for now. The stock closed on Thursday at $188.77, which was up 23% after the company posted outstanding numbers and announced a massive buyback.
NanoString Technologies Inc. (NASDAQ: NSTG): B. Riley Securities resumed coverage with a Buy rating and a $30 target price. The consensus target is just $16.83. The shares ended Thursday’s session trading at $12.57, which was up close to 11% on the analyst call.
Okta Inc. (NASDAQ: OKTA): The Hold rating at Needham is now at Buy, and the firm’s $90 target price tops the $80.52 consensus target. The shares closed on Thursday at $81.72, up almost 7% for the day on the upgrade and planned job cuts.
OptimizeRx Inc. (NASDAQ: OPRX): B. Riley Securities resumed coverage with a Buy rating and a $30 target. The consensus target is $25.40. The final trade for Thursday was for $19.38 a share.
Peloton Interactive Inc. (NASDAQ: PTON): Barclays reiterated an Overweight rating and raised its $14 target price to $19. Goldman Sachs and Baird both stuck with a Neutral rating and bumped their $12 target prices up to $14. The consensus target is $13.57. The stock closed on Thursday at $16.98. That was up close to 4% for the day after a positive earnings report.
Qualtrics International Inc. (NYSE: XM): Though Deutsche Bank downgraded the stock to Hold from Buy, it raised its $14 price target to $19. The consensus target is $17.06. Thursday’s close was at $16.68.
Scotts Miracle-Gro Co. (NYSE: SMG): Truist Financial reiterated a Hold rating but raised its $50 price target to $70. The consensus target is $62.50. Shares closed on Thursday at $83.92. That was up over 4% on the day after a strong earnings report.
United Parcel Service Inc. (NYSE: UPS): Jefferies reiterated a Buy rating with a $205 target price. The consensus target is $193.45, and the shares closed almost 4% higher on Thursday at $191.29.
Waste Management Inc. (NYSE: WM): Oppenheimer reiterated an Outperform rating with a $168 target. The $171.24 consensus target is higher, but shares ended Thursday trading at $150.34.
With mega-cap tech companies becoming leaner and meaner, could an old-fashioned tech rally be in store? Seven of them that provide products and services in high demand and pay dependable dividends also have stocks with enticing entry points now.
Thursday’s top analyst upgrades and downgrades included Advanced Micro Devices, Amazon.com, Amgen, Corning, Edison International, Electronic Arts, Foot Locker, General Mills, Mattel, NXP Semiconductors, Shopify, Snap and Waste Management.
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