The futures traded lower on Thursday, after another wild trading day on Wednesday that saw all the major indexes rally back from an early hole after closing at the lowest since March in the previous session. By the close, only the venerable Dow Jones industrials finished the session lower. Stocks initially rolled over with the same twin nemesis of spiking interest rates and higher oil prices driving the risk-off move, while some bargain hunting and end of the quarter window dressing helped fuel the reversal. It should be noted that Federal Reserve Governor Neel Kaskari stated that interest rates may not be high enough to stop inflation, and that is commentary we have not heard from him lately.
Treasury yields were up across the curve on Wednesday, but it should be noted that the benchmark 10-year note, which finished the day at 4.60%, has risen in yield a stunning 50 basis points in a month, to the highest level since 2007. The two-year paper closed at 5.14%, keeping the inversion between the two in place. Bond traders know, and history shows, that the inversion signals the potential for recession.
Brent and West Texas Intermediate crude exploded higher Wednesday, with both the major indexes up big after yet another big inventory draw of 2.2 million barrels. Brent finished the day up 2.71% at $96.51, while WTI was even stronger closing at $93.71 up 3.67%. It is likely that prices could dip some soon, as it was reported that bullish futures bets have soared over the past month. Natural gas also had a big day, closing 4.33% higher at $2.77.
Gold continued its downward trend on Wednesday, with the same catalyst pushing the bullion lower as continued dollar strength and rising interest rates weigh on the precious metal. The December contract closed the day down 1.39% at $1,893.20. Bitcoin was modestly higher, closing the session at $26,256.80, up 0.18%.
24/7 Wall St. reviews dozens of analyst research reports each weekday 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, September 28, 2023.
DocuSign Inc. (NASDAQ: DOCU): HSBC Securities upgraded the shares to Hold from Reduce and have a $42 target price. The consensus target is higher at $64.28. The last trade on Wednesday was for $41.32 a share.
Etsy Inc. (NASDAQ: ETSY): Wells Fargo reiterated an Underweight rating and cut its $70 target price to $60. The consensus target is $106.33. Wednesday’s closing share price was $61.89.
Guardant Health Inc. (NASDAQ: GH): Piper Sandler upgraded the company to Overweight from Neutral and has a $40 target price. The consensus is set higher at $55.56. The last trade for Wednesday was reported at $27.62 up over 7% on positive commentary and the upgrade.
International Paper Co. (NYSE: IP): As Jefferies upgraded the shares to Hold from Underperform, its $26 target price rose to $33. The consensus target is $34.83. Wednesday’s close was at $34.95.
Jack Henry & Associates Inc. (NASDAQ: JKHY): D.A. Davidson upgraded the stock to Buy from Neutral. Its $174 price target is higher than the consensus target of $171.46. Wednesday’s close was at $148.44.
Johnson Controls International PLC (NYSE: JCI): HSBC Securities boosted its Hold rating to Buy. Its target price increased from $58 to $69, but that is still less than the $72.74 consensus target. Wednesday’s closing trade was recorded at $54.54.
Kosmos Energy Ltd. (NYSE: KOS): The BofA Securities upgrade to Buy from Neutral included a price target bump to $10 from $8.70. The consensus target is $8.10, but shares closed almost 7% higher on Wednesday at $8.20 due to the upgrade and solid oil pricing.
Levi Strauss & Co. (NYSE: LEVI): TD Cowen started coverage with an Outperform rating and a $16 target price. The consensus target is $16.45, and shares closed at $13.20 on Wednesday.
Nuvalent Inc. (NASDAQ: NUVL): Stifel started coverage with a Buy rating and a $65 target price. The consensus target is just $51.40. Wednesday’s $45.63 close was a gain of almost 9%, due to the upgrade and the potential for big clinical data coming soon.
Regeneron Pharmaceuticals Inc. (NASDAQ: REGN): Oppenheimer reiterated an Outperform rating with a target price of $1,050. The consensus target is just $906.76, and the shares closed on Wednesday at $832.56.
Rev Group Inc. (NYSE: REVG): D.A. Davidson’s upgrade was to Buy from Neutral. The analyst also lifted the target price from $16 to $20, above the $16.67 consensus target. Wednesday’s $15.81 close was up over 4% on the day.
Snowflake Inc. (NYSE: SNOW): Oppenheimer reiterated an Outperform rating with a $220 target price. The consensus target is $198.35. Wednesday’s close was at $147.52.
TechTarget Inc. (NYSE: TTGT): Raymond James resumed coverage with an Outperform rating. Its $32 target price compares with the consensus target of $33.44 and Wednesday’s close at $28.75, which was 6% higher for the day due to the upgrade.
Teledyne Technologies Inc. (NYSE: TDY): UBS started coverage with a Buy rating and a target price set at $495. That compares with the $484.67 consensus target and Wednesday’s closing print of $413.44.
Tesla Inc. (NASDAQ: TSLA): Though Deutsche Bank reiterated a Buy rating, the analyst trimmed the $300 target price to $285. The consensus target is still lower at $227.71. Wednesday’s final trade was for $240.50 a share.
Topgolf Calloway Brands Corp. (NYSE: MODG): Morgan Stanley initiated coverage with an Underweight rating and a $12 target price. The consensus target is up at $28.55, and shares closed on Wednesday at $13.48.
24/7 Wall St.WW International Inc. (NASDAQ: WW): Craig Hallum raised its Sell rating to Hold and its $4 target price to $10. The consensus target is $11.40, and the stock closed on Wednesday at $11.08.
XPO Inc. (NYSE: XPO): When Evercore ISI upgraded the stock to Outperform from In Line, its $72 target price increased to $79, above the $77.41 consensus target. Friday’s close was at $70.07.
Yeti Holdings Inc. (NASDAQ: YETI): Morgan Stanley resumed coverage with an Equal Weight rating and a $50 target price. The consensus target is $50.50. The shares closed at $46.03 on Wednesday.
Goldman Sachs feels these five top oilfield services leaders will be big winners from the surge in crude oil prices toward $100 a barrel.
And the six Goldman Sachs Conviction List stock picks with the biggest upside potential are trading well below their 52-week highs and offering investors outstanding entry points.
Wednesday’s top analyst upgrades and downgrades included AMC Entertainment, Bumble, Comerica, Dell Technologies, Edwards Lifesciences, Etsy, Fisker, Luminar Technologies, Micron Technology, Opendoor Technologies, Pinterest and Snap.
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