The futures were mixed after a solid Tuesday that once again saw all the major indexes finish the day higher. The Nasdaq and the S&P 500 posted 2023 highs. The tailwind for stocks was the reasonably benign consumer price index (CPI) report for May, which came in at 4.0%, just below expectations for a 4.1% year-over-year increase. The core CPI number, which backs out the volatile food and energy results, came in at 5.3%, in line with 5.3% expectations. CPI inflation has now declined for 12 consecutive months, following the most aggressive Federal Reserve rate hike cycle in decades. Most across Wall Street now expect Fed Chair Powell to announce a June pause.
Treasury yields were higher for the second day running, as sellers came in big after the noon hour as the bond market also spent Tuesday deciphering the inflation data. With the odds very solid that there will not be a rate increase Wednesday, buyers could be ready to step into what will be a huge onslaught of government debt being brought to market to refill the Treasury coffers as the quarter draws to a close. The 10-year note finished the day at 3.84%, while the two-year paper closed at 4.68%, widening the inversion between the two securities.
Brent and West Texas Intermediate crude were big winners Tuesday, both closing up over 3% after a dreadful Monday that saw the major benchmarks get clobbered to the tune of 4.5%. With the CPI data coming in as good or better than expected, worries over a June rate increase have been dramatically lowered, and oil traders took advantage of the lowest price levels since mid-March to add or initiate positions. Natural gas closed almost 3% higher at $2.33.
Gold prices dropped, after initially moving higher on the CPI data, and finished the day down 0.70% at $1955.60 for the August contract. Bitcoin rallied off the lows of the day to close modestly higher at $25,930. Ongoing worries of government regulation have weighed on the cryptocurrency giant since March.
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 Wednesday, June 14, 2023.
Apple Inc. (NASDAQ: AAPL): Though UBS downgraded the stock to Neutral from Buy, it bumped its $180 price target up to $190. The consensus target is $186.14, and shares closed on Tuesday at $183.31.
Assurant Inc. (NYSE: AIZ): Piper Sandler upgraded the stock to Overweight from Neutral, but its $144 target price is less than the $159.20 consensus target. The shares closed up over 4% on Tuesday at $130.32 after the upgrade.
BRP Inc. (NASDAQ: DOOO): D.A. Davidson lifted its Neutral rating to Buy and its target price to $126 from $111. The consensus target is $105.18. Tuesday’s $79.26 close was a one-day gain of over 5% after the upgrade.
Core & Main Inc. (NYSE: CNM): Northcoast initiated coverage with a Buy rating and a $40 price target. The consensus target is $33.83. Tuesday’s final trade was for $28.89 a share.
Devon Energy Corp. (NYSE: DVN): Goldman Sachs upgraded the shares to Buy from Neutral. The analyst also trimmed its $63 target price to $58, below the $62.96 consensus target. Tuesday’s close at $50.39 was a 3% gain for the day on the upgrade and stronger oil pricing.
EOG Resources Inc. (NYSE: EOG): When Goldman Sachs downgraded the stock to Neutral from Buy, it also reduced its $137 target price to $130. The consensus target is $143.74. The shares closed on Tuesday at $112.72.
First Horizon Corp. (NYSE: FHN): J.P. Morgan’s downgrade to Neutral from Overweight included a target price cut to $13 from $20. The consensus target is $13.32, and shares closed on Tuesday at $12.15.
Global Payments Inc. (NYSE: GPN): The Jefferies downgrade to Hold from Buy included a target price cut to $105 from $140. The consensus target is $136.84. The stock closed on Tuesday at $100.61.
Mobileye Global Inc. (NASDAQ: MBLY): Citigroup resumed coverage with a Buy rating and a $71 target price. The consensus target is just $45.35, and Tuesday’s close was at $40.31.
Investors Pounce on 3 Sizzling ‘Strong Buy’ Blue Chips Likely to Raise Dividends This Week
Netflix Inc. (NASDAQ: NFLX): BofA Securities reiterated a Buy rating and boosted its $410 target price to $490. Guggenheim also reiterated a Buy rating, and its $375 target price soared to $500. The consensus target is $373.74. The stock closed on Tuesday at $435.33.
NVR Inc. (NYSE: NVR): Zacks has picked this homebuilder stock as its Bull of the Day, citing superior business economics and housing supply tailwinds. Shares most recently closed at $5,929.63, which is more than 28% higher than at the beginning of the year.
Oracle Corp. (NYSE: ORCL): As Goldman Sachs boosted its Sell rating to Neutral, the target price increased to $120 from $75. The consensus target is $105.15. The stock closed on Tuesday at $116.68.
PagSeguro Digital Ltd. (NYSE: PAGS): HSBC Securities upgraded the stock to Buy from Hold. Its $10 target price rose to $13, above the consensus target of $12.83. Tuesday’s $10.39 close up almost 3% for the day on the upgrade.
PayPal Holdings Inc. (NASDAQ: PYPL): Atlantic Equities downgraded the stock to Neutral from Overweight and has a $72 target price. The consensus target is $92.94. Tuesday’s close at $63.56.
Radian Group Inc. (NYSE: RDN): Keefe Bruyette downgraded the stock from Outperform to Market Perform with a $27.50 target. The consensus target is $26.58. The shares ended trading on Tuesday at $25.46.
Rexford Industrial Realty Inc. (NYSE: REXR): Citigroup’s downgrade to Neutral from Buy included a target price cut to $53 from $66. The consensus target is up at $69.88. The shares finished Tuesday’s session at $52.79.
StoneCo Ltd. (NASDAQ: STNE): HSBC Securities upgraded the stock to Buy from Hold, and it raised its $11 target price to $15. The consensus target is $13.74, and the stock closed on Tuesday at $13.49.
Surmodics Inc. (NASDAQ: SRDX): The Hold rating at Needham is now at Buy. Its $36 target price is much less than the $56.33 consensus target. The upgrade helped shares close 16% higher on Tuesday at $26.31.
Ulta Beauty Inc. (NASDAQ: ULTA): Loop Capital upgraded the shares to Buy from Hold and hiked its target price to $520 from $490. The consensus target is $532.86. The last trade on Tuesday was reported at $443.76, which was up almost 4% for the day after the upgrade.
Urban Outfitters Inc. (NASDAQ: URBN): As Morgan Stanley raised its Equal Weight rating to Overweight, its $27 price target jumped to $41. The consensus target is $32.63. The closing share price for Tuesday was $33.54, up over 4% for the day on the upgrade and positive commentary.
U.S. Cellular Corp. (NYSE: USM): Its Bear of the Day is being edged out by its larger rivals that can outcompete with aggressive pricing for their service plans, says Zacks. Shares have traded as high as $32.41 in the past year but closed most recently at $16.58.
Weibo Corp. (NYSE: WB): The downgrade to Neutral from Buy at UBS came with a target price slashed from $33 to $15.50. The consensus price target is $22.28, and the shares closed on Tuesday at $14.88.
Five outstanding companies should do very well in a falling inflation environment, and their stocks make sense for long-term investors looking to stay long the market but wanting to avoid chasing technology, which has led the market rally this year.
Tuesday’s top analyst upgrades and downgrades included Bill, Carnival, CenterPoint Energy, Editas Medicine, International Paper, Oracle, Palantir Technologies, Petrobras, SentinelOne, Trade Desk, Valvoline and Walmart.
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