The futures were trading mixed after a huge Monday that saw all the major indexes finish the day higher, with the Nasdaq’s 1.5% gain leading the way. With the consumer price index (CPI) results coming in pretty much as expected, many feel that Federal Reserve Chair Powell will still announce a skip in raising rates tomorrow, but not a pause. While overall market breadth has improved as stocks have surged higher, many feel that this current run is close to over, and the back half of the year may be another story for investors after a very solid first half.
Treasury yields were mixed to slightly higher across the board, as bond traders also were tracking the CPI results and with the potential for more increases after a June pause. Many will be closely scrutinizing Powell’s remarks when he addresses the media on Wednesday. The 10-year note finished the day yielding 3.77%, while the two-year paper closed at 4.58% the highest since early March. The inversion in yields for the two securities signals recession is in our future.
Brent and West Texas Intermediate crude were the big losers to start the week. The former finished the day down 3.9% and WTI a stunning 4.3%. The oil benchmarks closed down 2% last week to finish lower for the sixth time in the past eight weeks. Goldman Sachs lowered its year-end 2023 target price to $86, and that was cited as a big reason for the selling Monday, along with concerns for the potential for continued interest rate hikes. Natural gas finished the day slightly higher at $2.27.
Gold finished the day lower as well, closing down 0.30% at $1971. Top analysts cited the Treasury’s huge need to sell bonds to replenish its coffers as a negative for the markets as it could cause a massive liquidity drain, which some feel ultimately could be quite positive for the bullion. Bitcoin finished the day modestly lower, down 0.15%, at $25,896.
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, June 13, 2023.
Abercrombie & Fitch Co. (NYSE: ANF): Argus upgraded the stock to Buy from Hold and has a $41 target price. The consensus target of $30.60 is below Monday’s $34.39 closing share price.
Ameren Corp. (NYSE: AEE): KeyBanc Capital Markets raised its Sector Weight rating to Overweight with a $90 target price. The consensus target is $93.80. Monday’s close was at $83.53.
Ares Management Corp. (NASDAQ: ARES): Wells Fargo downgraded the shares to Equal Weight from Overweight, and it trimmed its $99 target price to $93. The consensus target is $99.18, and shares closed on Monday at $92.92.
AutoZone Inc. (NYSE: AZO): Evercore ISI lifted its Underperform rating to Outperform and its target price objective is $2,7o0 from $2,640. The consensus target is $2,772.86. The stock closed on Monday at $2,415.
Bill Holdings Inc. (NYSE: BILL): Morgan Stanley downgraded the shares to Equal Weight from Overweight. Its $105 target price compares with a $115.21 consensus figure and Monday’s close at $115.51.
Carnival Corp. & PLC (NYSE: CCL): When BofA Securities upgraded the stock to Buy from Neutral, it also boosted its $11 target price to $20. The consensus target is $11.50. The shares closed on Monday at $14.72, which was up 12.5% after multiple positive reports and upgrades, as well as the announcement that first-quarter bookings were the most in the company’s history.
CenterPoint Energy Inc. (NYSE: CNP): Guggenheim’s upgrade was from Neutral to Buy with a $32 price target. The consensus target is $32.17. Monday’s close was at $29.12.
Editas Medicine Inc. (NASDAQ: EDIT): Raymond James upgraded the stock to Outperform from Market Perform and has a $17 target price. The consensus target is $12.76. Monday’s $9.93 close was almost 3% higher for the day on the upgrade.
Extra Space Storage Inc. (NYSE: EXR): Evercore ISI upgraded the stock to Outperform from Underperform, but its $164 target price is less than the consensus target of $170.50. The stock closed on Monday at $145.37.
International Paper Co. (NYSE: IP): Citing a share price decline and fading earnings outlook, Zacks named this stock as its Bear of the Day. Shares have traded as high as $45.18 in the past year but closed most recently at $31.33.
Jazz Pharmaceuticals PLC (NASDAQ: JAZZ): Though Wells Fargo resumed coverage with an Equal Weight rating, the analyst slashed the $184 price target to $140. The consensus target is $201.47. The stock closed at $125.61 on Monday.
Kinetik Holdings Inc. (NASDAQ: KNTK): Scotiabank upgraded the stock to Sector Perform from Sector Outperform but lowered its $60 price target to $47. The consensus target is $36.50, and shares closed on Monday at $33.66, which was up 2.5% on the day.
Methanex Corp. (NASDAQ: MEOH): Scotiabank downgraded the shares from Sector Perform to Sector Outperform with a $50 target. The consensus target is $55.00. Monday’s close was at $40.56.
Oracle Corp. (NYSE: ORCL): Wolfe Research’s upgrade was to Outperform from Peer Perform. Its $130 target price compares with a $103.62 consensus figure. The stock closed almost 6% higher on Monday at $116.43 due to multiple upgrades.
Palantir Technologies Inc. (NYSE: PLTR): BofA Securities reiterated a Buy rating on the stock and lifted its 13 target price to $18. The consensus target is $9.50 for now. Monday’s close at $15.65 was up 4% for the day on the strong AI interest and a strong tech tape.
Petrobras Brasileiro S.A. (NYSE: PBR): As J.P. Morgan raised its Neutral rating to Overweight, its target price increased to $15.50 from $11.50. The consensus target is $13.65. The shares ended Monday at $13.98.
Rexford Industrial Realty Inc. (NYSE: REXR): BMO Capital Markets downgraded the shares to Market Perform from Outperform. The firm also cut its $69 target price to $56, well below the $69.88 consensus target. The shares finished Monday’s session at $50.99.
Rockwell Automation Inc. (NYSE: ROK): Zacks makes the case that broader economic trends benefit its Bull of the Day stock. Shares hit a 52-week high of $309.92 on Monday and are up more than 20% year to date.
Saia Inc. (NASDAQ: SAIA): Jefferies started coverage with a Buy rating and a $350 target price. The consensus target is $310.20. The stock closed on Monday at $305.24, a one-day gain of almost 4%.
SentinelOne Inc. (NYSE: S): Morgan Stanley upgraded the shares to Overweight from Equal Weight and lifted its $15 target price to $20, above the $17.92 consensus target. Monday’s closing print of $15.74 was up 8% for the day on the upgrade and the oversold conditions for the shares.
Ternium S.A. (NYSE: TX): BofA Securities cut its Buy rating to Neutral and its target price to $47 from $56. The consensus target is $50.27. The stock closed on Monday at $40.52, down over 4% for the day after the downgrade.
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Trade Desk Inc. (NASDAQ: TTD): Citigroup reiterated a Buy rating and boosted its $76 target price to $86. The consensus target is $72.56. The shares closed on Monday at $75.48.
Valvoline Inc. (NYSE: VVV): Morgan Stanley resumed coverage with an Equal Weight rating and a $40 target price. The consensus target is $42.20, and shares closed on Monday at $37.39.
Walmart Inc. (NYSE: WMT): Exane BNP Paribas initiated coverage with an Outperform rating and a $186 target price. The consensus target is $168.43. Monday’s close was at $154.10,
Caterpillar and Kroger are rated Buy across Wall Street and this week are among companies expected to boost their dividends, showing that they are doing well and have the earnings and cash flow strength to increase their payouts.
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Monday’s top analyst upgrades and downgrades included Activision Blizzard, Adobe, Caesars Entertainment, Corning, DocuSign, Park Hotels & Resorts, PayPal, Target, Trip.com, Twilio and UiPath.
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