Thursday's Top Analyst Upgrades and Downgrades: Analog Devices, AppLovin, Goodyear, Home Depot, Kohl's, Lowe's, Marriott, Tencent Music, Wynn Resorts and More

The futures were positive, following a very solid day across Wall Street in which all the major indexes finished higher. The Nasdaq printed its best close since August 25 of last year. Some positive commentary on the debt ceiling negotiations was cited as one of the big reasons for the strength Wednesday. Speaker McCarthy was reported to have said there is a chance that a deal could be worked out as soon as Friday. Plus, both he and President Biden conceded that a default is not an option. Some positives were noted in the regional banking space as well. Western Alliance Bancorp. said deposits had increased by $2 billion since the end of the first quarter.

Treasury yields were slightly higher across the curve on Wednesday, with some bigger selling coming in on the short end, while longer-dated maturities were flat to modestly higher. Again, bond traders are also closely watching the debt ceiling negotiations for any progress in front of the June 1 deadline established by the Treasury Secretary. The 10-year note finished the day at 3.58%, while the two-year paper yield jumped up nine basis points to close at 4.16%.

Brent and West Texas Intermediate crude both exploded higher Wednesday, closing up 2.78% and 2.50%, respectively. The two benchmarks have traded in a tight range so far in 2023, but many across the energy complex expect continued drawdowns in U.S. inventories, and the International Energy Agency’s strong outlook for second-half 2023 demand gave oil markets a tailwind to trade higher Wednesday. Natural gas finished the day flat at $2.37.

Gold was lower for the third session in a row this week, as profit-taking continued on Wednesday. The bullion finished the day at $1,985. Bitcoin had a winning day for the first time this week, closing up 1.1% at $27,362.

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 Thursday, May 18, 2023.

Analog Devices Inc. (NASDAQ: ADI): Oppenheimer reiterated an Outperform rating with a $230 target price. The consensus target is $26.17, and shares ended Wednesday’s trading at $20.38, up just shy of 5% on the day.

APi Group Corp. (NYSE: APG): Baird raised its Neutral rating to Outperform and its $27 target price up to $29. The consensus target is $28.22. The stock closed over 4% higher on Wednesday at $23.28 after the upgrade.

AppLovin Corp. (NASDAQ: APP): As BofA Securities upgraded the stock to Buy from Neutral, its $21 price target increased to $27, above the consensus target of $23.79. Wednesday’s close at $24.38 was up close to 7% for the day on the upgrade.

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