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Top Analyst Upgrades and Downgrades: Arch Coal, ADM, Citigroup, Myriad, Sirius and More
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February is acting as though it wants to carry on in January’s volatility and downward momentum for stocks. Earnings season also created selective winners and losers. 24/7 Wall St. reviews dozens of Wall Street analyst research reports each morning, looking for new ideas on stocks to buy and stocks to sell. These are this Wednesday’s top analyst upgrades, downgrades and initiations seen from Wall Street research firms.
Arch Coal Inc. (NYSE: ACI) was reiterated as Buy with a $7 price target at Sterne Agee, after the company’s rally even on bad earnings. The firm called it a cyclical value stock. As a reminder, this was featured as one of our own picks of nine stocks that could double in 2014.
Archer Daniels Midland Co. (NYSE: ADM) reported earnings this week, and we have two upgrades seen so far. Citigroup raised its rating to Buy, and Scotia Capital Markets raised the rating to Outperform from Sector Perform.
Citigroup Inc. (NYSE: C) was reiterated as a Sell rating at Argus. The firm believes it remains overvalued in the context of the company’s current challenges, and it believes that and is hoping for a faster wind-down of Citi Holdings. Return on capital also has to improve before Argus thinks buyers will return the stock above tangible book value. Citigroup closed at $46.78, yet the consensus price target is all the way up at $60.53.
Myriad Genetics Inc. (NASDAQ: MYGN) was raised to Market Perform from Underperform at JMP Securities. Keep in mind that shares are up 12% at $30.80 after earnings and after announcing an acquisition. Ladenburg Thalmann downgraded Myriad to Neutral from Buy into the strength.
Sirius XM Holdings Inc. (NASDAQ: SIRI) was downgraded to Hold from Buy at Wunderlich, and the price target was cut to $3.80 from $4.20. Wunderlich was bullish at much lower prices than now. Despite the buyout on the table, the firm believes a strategic investor or convertible offering could come into play.
Other Key Calls
ABB Ltd. (NYSE: ABB) was added to the Bank of America Merrill Lynch ‘Europe 1’ list with a price objective of 27 Swiss francs, which implies more than 20% upside for the ADRs in New York trading.
AGCO Corp. (NYSE: AGCO) was downgraded to Market Perform from Outperform at BMO Capital Markets. Credit Suisse maintained a Neutral rating but lowered its target price too.
American Capital Agency Corp. (NASDAQ: AGNC) was raised to Overweight from Neutral at J.P. Morgan.
Angie’s List Inc. (NASDAQ: ANGI) was downgraded to Neutral from Buy at Merrill Lynch, although the price target was maintained at $22 (versus a $18.12 close).
Banco Bilbao Vizcaya Argentari S.A. (NYSE: BBVA) was raised to Overweight from Neutral at HSBC.
Hartford Financial Services Group Inc. (NYSE: HIG) was raised to Outperform from Market Perform at Keefe Bruyette Woods.
Triumph Group Inc. (NYSE: TGI) was downgraded to Neutral from Buy and the price target was cut to $73 from $83 at Merrill Lynch.
Vale S.A. (NYSE: VALE) was raised to Overweight from Equal Weight at Morgan Stanley.
Verint Systems Inc. (NASDAQ: VRNT) was reinstated in coverage with a Neutral rating at Credit Suisse, with a $49 price target.
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