The futures traded higher after a big Friday rally that saw all the major indexes finish the day higher, snapping a four-day losing streak. Solid earnings from Apple and a strong nonfarm payrolls report for April got the party started, and a drop in the unemployment rate kept the risk-on crowd firmly in command until the closing bell.
With almost 85% of the S&P 500 having reported, and earnings growth for the balance of 2023 looking somewhat better, any hopes for a pause in the rate increases, or a cut in rates (which some say the Fed swaps market points to), seems unlikely now. In addition, the odds for a final 25-basis-point increase in June have increased.
On Friday, Treasury yields soared across the curve on the strong employment report, with the shorter maturities seeing the bulk of the selling. The reversal of the regional banks, which were crushed last week, was also cited as a sell signal for bond traders. The 10-year note closed at 3.45%, while the two-year yield jumped a stunning 19 basis points and finished the day at 3.92%.
Brent and West Texas Intermediate crude both had a big Friday, which some in the energy complex chalked up to short covering and the strength in the jobs numbers. WTI led the way, closing up over 4% at $71.41. Some analysts and traders also pointed to rumors that Russia was cutting oil production. While the rally was encouraging, oil was still down sharply last week. Natural gas also had a solid Friday, closing up almost 1% at $2.12.
Gold was the loser Friday, closing down 1.5% at $2025 after posting big gains last week that had it closing in on all-time highs. Bitcoin was also a big-time winner, closing over 2% higher at $29,449.
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, May 8, 2023.
Alnylam Pharmaceutical Inc. (NASDAQ: ALNY): BMO Capital Markets upgraded the shares to Overweight from Neutral and lifted its $200 target price to $250. The consensus target is $248.50. The stock closed over 3% higher on Friday at $212.05.
Apple Inc. (NASDAQ: AAPL): Needham reiterated a Buy rating and lifted its $170 target price to $195. BofA Securities maintained a Neutral rating and bumped its target price to $176 from $173. Morgan Stanley stayed with an Overweight rating, and its $180 target price is now $185. The consensus target is $171.29. Friday’s $173.57 close was up almost 5% on the day after the company posted solid results, led by big iPhone sales.
Atlassian Corp. (NASDAQ: TEAM): Goldman Sachs downgraded the stock to Neutral from Buy and slashed the $240 target price to $165. The consensus target is $200.52 for now. The stock was hammered Friday, closing down almost 10% at $135.73, as solid quarterly numbers were offset by discouraging guidance.
Avis Budget Group Inc. (NASDAQ: CAR): Morgan Stanley’s upgrade was to Equal Weight from Underweight, and it bumped its $175 target price to $185. The consensus target is up at $234. Friday’s close at $167.47 was up over 3% for the day after solid results.
Becton Dickinson and Co. (NYSE: BDX): Piper Sandler raised its Neutral rating to Overweight and its $260 target price to $290. That compares with a $282.92 consensus target and Friday’s closing print of $253.66.
Block Inc. (NYSE: SQ): Needham reiterated a Buy rating, but its $95 target price slipped to $80. The consensus target is $92.27. Shares closed on Friday at $59.25.
CF Industries Holdings Inc. (NYSE: CF): Zacks selected this fertilizer maker as its Bear of the Day stock, with the analyst explaining why investors have to be patient with the sector. Shares have traded as high as $119.60 in the past year but closed most recently at $69.64, which is down more than 18% year to date.
Cirrus Logic Inc. (NASDAQ: CRUS): TD Cowen reiterated an Outperform rating and trimmed its $110 target price to $100. The $103.83 consensus target is higher. Friday’s $79.46 final trade was down over 3% for the day despite earnings topping estimates.
Comerica Inc. (NYSE: CMA): J.P. Morgan’s upgrade was to Overweight from Neutral. Its $46 target price is less than the $58.10 consensus target. Shares closed on Friday at $36.44.
CommScope Holding Co. Inc. (NASDAQ: COMM): Northland Capital upgraded the stock from Market Perform to Outperform with a $7 target price. The consensus target is $8.81. Friday’s close was at $4.78.
DraftKings Inc. (NASDAQ: DKNG): Oppenheimer reiterated an Outperform rating and bumped its $28 target price to $30. BTIG Research maintained a Buy rating, and its $25 target grew to $27. BofA Securities stayed with a Neutral rating and nudged its target to $25 from $24. The consensus target is $24.71. The stock had a huge Friday, closing up over 15% at $24.58 after a strong earnings beat.
Exact Sciences Corp. (NASDAQ: EXAS): UBS started coverage with a Neutral rating and a $73 target price. The consensus target is $77.19. Friday’s close was at $67.30.
24/7 Wall St.Global Payments Inc. (NYSE: GPN): Evercore ISI resumed coverage with an In Line rating and a $116 target price. The consensus target is $138.14. The stock closed on Friday at $104.78, which was up over 3% on the day after a solid quarterly report.
Kellogg Co. (NYSE: K): J.P. Morgan’s upgrade to Neutral from Underweight included a target price hike to $72 from $68. The consensus target is $72.29. On Friday, shares closed at $70.35.
Mobileye Global Inc. (NASDAQ: MBLY): Berenberg started coverage with a Buy rating and a $44 target price. The consensus target is $44.59. Friday’s closing share price of $37.61 was up 8% on the day, after solid results with a weaker than expected outlook.
NV5 Global Inc. (NASDAQ: NVEE): Maxim’s upgrade was from Hold to Buy with a $125 target price. The consensus target is up at $145.64. The shares closed almost 6% higher on Friday at $98.88 after earnings and revenues topped estimates.
Shake Shack Inc. (NYSE: SHAK): Credit Suisse reiterated a Neutral rating while lifting its $63 target price to $69. The consensus target is $61.94. Friday’s final trade was for $65.53 a share, up over 6% on the day after a strong earnings and revenue beat.
Shopify Inc. (NYSE: SHOP): As UBS upgraded the stock to Neutral from Sell, it boosted its $34 target price all the way to $64. The consensus target is $53.12. The stock closed over 8% higher on Friday at $62.03, helped by outstanding quarterly results.
SiTime Corp. (NASDAQ: SITM): Barclays downgraded the company to Equal Weight from Overweight. The analyst slashed the $135 target price to $88, much lower than the $117.25 consensus target. Friday’s $88.29 close was up almost 5% for the day.
SolarEdge Technologies Inc. (NASDAQ: SEDG): When Deutsche Bank upgraded the stock to Buy from Hold, its $305 target price increased to $375. The consensus target is $372.71. The stock closed at $293.39, up close to 5% on Friday in the wake of solid quarterly results.
TE Connectivity Ltd. (NYSE: TEL): Evercore ISI upgraded the stock to Outperform from In line, and the $130 target price is now $150. The consensus target is $136.70. The stock closed at $122.94 on Friday, a 3% one-day gain.
Wesco International Inc. (NYSE: WCC): Baird raised its Neutral rating to Outperform with a $180 target price. The consensus target is $196.11. Friday’s close was at $129.97, which was up nearly 6% for the day due to strong quarterly results.
Wingstop Inc. (NASDAQ: WING): Investors are buying into “the rise of the chicken wing,” says Zacks about its Bull of the Day stock. Its shares last closed at $210.23, after hitting an all-time high of $223.77 late last week.
V.F. Corp. (NYSE: VFC): Wells Fargo upgraded the stock to Equal Weight from Underweight and lifted their target to $22 from $18. The consensus is set higher at $28.08 The last trade on Friday came in at $22.12 up almost 6%.
Zions Bancorp N.A. (NASDAQ: ZION): Baird upgraded the stock to Overweight from Underweight. Its $29 target price is less than the $37.47 consensus target. The stock closed 20% higher on Friday at $23.76 as the regional banks staged a furious rally.
As interest rates continue to rise and with a recession increasingly likely, nervous investors are turning to five long-term Warren Buffett holdings that are safe and will continue to pay big dividends.
Netflix, Tesla and Uber are among the youngest companies in the S&P 500.
Friday’s top analyst upgrades and downgrades included Builders FirstSource, CVS Health, DHT, Incyte, McDonald’s, Newell Brands, PacWest Bancorp, Wingstop and ZoomInfo Technologies.
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