5 Top Wall Street Biggest Analyst Stock Calls as Inflation Spikes
One energy stock received two upgrades Friday morning after announcing a merger on Thursday. Basic materials stocks were in favor, too.
Despite a negative print for the December consumer price index numbers, the three major indices mainly closed flat Thursday, after steep morning losses were erased by noon. Equities traded about by about a third to a half a point in Friday’s premarket session. The surprising increase in the inflation data, combined with more hawkish commentary from Federal Reserve governors, kept stocks defensive. However, the prominent technology leaders helped keep a bid under the market. With fourth-quarter earnings ready to start in earnest, all eyes will be on the results.
Bonds
Despite the surprising inflation report, Treasury yields finished the day flat across the curve. This all came after the December numbers represented the most significant monthly change in the index since last September. The 10-year note closed at 3.97%, while the two-year was last seen at 4.26%.
Commodities
Brent and West Texas Intermediate crude finished higher and could be going much higher after U.S. Military strikes in Yemen targeting Houthi militants could increase the dangers in the region. Brent closed up 0.80% at $77.41, while WTI jumped 2.17% to end the day at $73.58. Natural gas was also strong, closing up 1.74% at $5.15.
Gold also finished modestly higher, as the February contract closed at $2,033.20, up 0.69%. The geopolitical issues around the globe with two wars that the United States is participating in by proxy, plus the expansion of the war in the Middle East, have kept buyers seemingly grabbing any drift down in the bullion. Bitcoin closed down 0.38% at $46,167 as some ETF exuberance brought in the sellers.
Here are the top Wall Street analyst upgrades, downgrades and other calls for Friday, January 12, 2024.
Upgrades
Chesapeake Energy Corp. (NASDAQ: CHK) from Neutral to Buy at both Citigroup and Mizuho. The former boosted its $82 price target to $95, while the target at the latter increased from $96 to $104.
International Flavors & Fragrances Inc. (NYSE: IFF | IFF Price Prediction) from Hold to Buy, with its price target raised from $73 to $112, at Jefferies.
Live Nation Entertainment Inc. (NYSE: LYV) from Neutral to Buy at Roth MKM, which raised its $92 price target to $114.
Qualcomm Inc. (NASDAQ: QCOM) from Neutral to Buy with a price target of $160 at Citigroup.
Downgrades
Anheuser-Busch InBev S.A./N.V. (NYSE: BUD) from Outperform to Neutral at Exane BNP Paribas. No price target was given. (These are the most delicious beers in America.)
Johnson Controls Inc. (NYSE: JCI) from Sector Perform to Underperform, and a $54 price target lowered from $50, at RBC Capital Markets.
Snowflake Inc. (NYSE: SNOW) from Overweight to Equal Weight with a price target of $198 at Barclays.
ZoomInfo Technologies Inc. (NASDAQ: ZI) from Overweight to Equal Weight with a price target of $18 at Barclays.
Other Calls
Cleveland-Cliffs Inc. (NYSE: CLF) coverage was resumed at J.P. Morgan with an Overweight rating and a price target increase from $19 to $23.
Rio Tinto PLC (NYSE: RIO) was initiated with a Buy rating and price target of 7,300 pence (about $93) at Goldman Sachs. (These 25 American industries are booming.)
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM) was reiterated at a rating of Market Perform, but with a price target increase from $85 to $95, at TD Cowen.
United States Steel Corp. (NYSE: X) was resumed with a Neutral rating and price target of $52 at J.P. Morgan.
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Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad, diverse career, including a stint as creative services director at an NBC affiliate in Austin, Texas, gives him unique insight into the financial industry.
Lee Jackson's journey in the financial industry spans more than 30 years, including nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career spanned pivotal sell-side Wall Street events, from the dot-com rise and bubble to the Long-Term Capital Management debacle, 9/11, and the Great Recession of 2008. This reflects his resilience and adaptability amid market volatility.
Lee Jackson’s practical financial industry experience, gained through a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing across various platforms. This unique combination allows him to shed light on the intricacies of Wall Street in a way only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.
Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.
