The futures were lower on Tuesday, after the market started off the week going in multiple directions, with the Nasdaq pressing higher to close at 12,720 while the Dow Jones industrials sold off again, ending the day down at 33,268. The big winner was the Russell 200, which closed up 1.2% at 1,795.
The debt ceiling discussions remain on center stage, as President Biden flew back early from the G7 meeting in Japan to meet with the Speaker of the House. With the Treasury Secretary setting the June 1 “X-date” to lift the debt limit, there is now just over a week remaining before we run out of money. That, plus the likelihood of more Federal Reserve rate hikes, could put a damper on stocks.
Treasury yields were higher again across the board on Monday as the selling continued from last week. This comes after the dollar index posted another big gain last week. The 10-year note closed at 3.72%, while the short two-year paper finished the day at 4.32%. The inversion between the two is a sign of the potential for a recession.
Brent and West Texas Intermediate crude followed through on last week’s gains, as oil finished its best week in a month. Both of the benchmarks closed higher Monday, as analysts cited declining output from Iraq as a tailwind to open the week. Natural gas was the big loser in the energy complex on Monday, falling over 7% to finish Monday’s session at $2.40.
Gold closed flat on the day as the onslaught of selling seems to have abated. Analysts have questioned the current bullish stock stance, as central governments and institutions continue to load up on the bullion. Bitcoin finished the day modestly higher after a dreadful downdraft last week, closing at $26,898.
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, May 23, 2023.
AnaptysBio Inc. (NASDAQ: ANAB): J.P. Morgan downgraded the stock to Underweight from Neutral and trimmed its $31 price target to $30. The consensus target is $30.40. The shares were last seen Monday at $19.98, which was up over 4% on the day despite the downgrade.
Apple Inc. (NASDAQ: AAPL): Loop Capital downgrade was to Hold from Buy. Its $180 target price is higher than the $178.88 consensus target. The stock closed on Monday at $174.20.
Azul S.A. (NYSE: AZUL): As BofA Securities upgraded the stock to Neutral from Underperform, it raised its $6.90 target price to $11, in line with the consensus target of $11.04. The stock closed almost 11% higher on Monday at $9.30 due to the upgrade and positive analyst comments.
Blackline Inc. (NASDAQ: BL): Morgan Stanley started coverage with an Equal Weight rating and a $60 target price. The consensus target is 62.58. The stock closed on Monday at $54.12.
Boot Barn Holdings Inc. (NYSE: BOOT): Zacks named this specialty retailer as its Bear of the Day, with the analyst recommending that investors “hold their horses.” Shares have traded as high as $88.80 in the past year but closed most recently at $66.00.
Cirrus Logic Inc. (NASDAQ: CRUS): When Loop Capital downgraded the stock to Hold from Buy, its $92 price target dropped to $80. That compares with the $93.53 consensus and Monday’s $77.04 final trade.
Conagra Brands Inc. (NYSE: CAG): Zacks says its Bull of the Day stock offers both short-term and long-term opportunities. The shares of this packaged foods giant last closed at $35.39, and the $42.28 consensus price target would be a multiyear high.
CONMED Corp. (NYSE: CNMD): C.L. King initiated coverage with a Buy rating and a $140 target price. The consensus target is $126.14. The shares closed on Monday at $120.49.
Corteva Inc. (NASDAQ: CTVA): Vertical Research upgraded the stock to Buy from Hold, but its $67 target price is less than the $72.18 consensus figure. The stock ended Monday’s session at $56.86.
CSX Corp. (NASDAQ: CSX): Citigroup raised its Neutral rating to Buy and raised its $33 target price to $37. The consensus target is $34.94. The stock closed on Monday at $31.90.
Deere & Co. (NYSE: DE): Oppenheimer cut its $492 target price to $436 but kept an Outperform rating. The $455.65 consensus target is also well above Monday’s final trade of $360.50.
DraftKings Inc. (NASDAQ: DKNG) UBS’s upgrade to Buy from Hold included a target price hike to $30 from $19. The consensus target is $27.48. The stock closed almost 5% higher on Monday at $25.22 after the upgrade and on a ton of positive analyst commentary across Wall Street.
Fair Isaac Corp. (NYSE: FICO): Jefferies reiterated a Buy rating with an $875 target price. The $782.88 consensus target is nearer to Monday’s $776.73 close.
24/7 Wall St.Foot Locker Inc. (NYSE: FL): Citigroup downgraded the shares to Neutral from a Buy and cut the target price to $48 from $30. The consensus target is $38.50. Monday’s $27.62 close down almost 9% on the day after multiple downgrades due to a rough quarter.
Intuit Inc. (NASDAQ: INTU): Oppenheimer reiterated an Outperform rating with a $476 target price. The consensus target is $487.58. The stock closed on Monday at $454.11.
KeyCorp (NYSE: KEY): Odeon raised its Hold rating to Buy with an $11 target. The consensus target is $15.83. Monday’s close at $10.27 was up close to 5% on the day due to the upgrade.
Nike Inc. (NYSE: NKE): Stifel reiterated a Buy rating with a $143 price target. The consensus target is $135.74. The shares closed on Monday at $110.18, which was down 4% for the day after the horrible Foot Locker numbers weighed on the stock.
Norfolk Southern Corp. (NYSE: NSC): The Neutral rating at Citigroup is now at Buy, and its $225 target price rose to $250. The consensus target is $234.54. The stock closed on Monday at $218.25.
Revolve Group Inc. (NYSE: RVLV): TD Cowen downgraded the shares to Market Perform from Outperform. It also lowered its $30 target price to $19, below the $23.56 consensus target. The stock closed on Monday at $16.71.
Salesforce Inc. (NYSE: CRM): Oppenheimer reiterated an Outperform rating with a $225 target price. The consensus target is $226.15, and Monday’s close was at $210.26.
Take-Two Interactive Software Inc. (NASDAQ: TTWO): Jefferies reiterated a Buy rating and has a $165 target price. The consensus target is $144.19, and the stock closed on Monday at $137.25.
TrueBlue Inc. (NYSE: TBI): As BMO Capital Markets upgraded the shares to Outperform from Market Perform, the $18 price target rose to $20. The consensus target is $21.00. On Monday, shares closed at $17.51, which was up over 9% for the day on the upgrade.
Union Pacific Corp. (NYSE: UNP): Citigroup’s upgrade to Buy from Neutral came with a target price hike to $257 from $226. The consensus target is $218.75. The stock closed on Monday at $198.29.
Verona Pharma PLC (NASDAQ: VRNA): Jefferies resumed coverage with a Buy rating. It also lifted its $35 target price to $38, well above the consensus target of $31.43. The stock closed on Monday at $21.33, which was up close to 8% for the day on the upgrade.
Zions Bancorp. N.A. (NASDAQ: ZION): Hovde started coverage with an Outperform rating and a $29 target price. The consensus target is up at $37.24. Monday’s $28.09 close was up 5% on the day, as quality regional banks continue to catch a bid.
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Monday’s top analyst upgrades and downgrades included Amphenol, Apollo Global Management, Applied Materials, Bloom Energy, Dell Technologies, EOG Resources, Gap, Invesco, PBF Energy, Range Resources, Walt Disney and Wendy’s.
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