Investing
Top Analyst Upgrades and Downgrades: AIG, GM, Rite Aid, Synta, Disney and More
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Stocks are still very close to all-time highs, and investors want to avoid getting caught in the next sell-off while still participating in the market gains. 24/7 Wall St. reviews dozens of analyst research reports each morning to find new ideas for its readers. Some are stocks to buy, others cover stocks to sell. These are this Wednesday’s top analyst upgrades, downgrades and initiations seen from Wall Street research firms.
American International Group Inc. (NYSE: AIG) was downgraded to Hold from Buy at Deutsche Bank, and the price target was cut to $55 from $58 in the call as well.
General Motors Co. (NYSE: GM) has been reiterated as Buy with a $50 price target (versus a $35.18 close) at Sterne Agee. The call is based on the recall, saying that GM now has the opportunity to go above and beyond what is required and prove change has indeed occurred at the company. The potential cost of a recall is only $150 million, and the liability beyond the recall is minimal, according to their call.
Rite Aid Corp. (NYSE: RAD) was raised to Buy from Neutral and the price target was raised to $8 from $5 by Goldman Sachs. Shares closed at $6.44 on Tuesday, and the consensus price target was $5.88. Note that the street-high analyst call for the stock prior to this upgrade was only $7.
Synta Pharmaceuticals Corp. (NASDAQ: SNTA) was up on Tuesday, but now shares are lower after earnings. The cancer-focused biotech was downgraded to Sell from Hold at Stifel Nicolaus, and BMO Capital markets also downgraded the stock to Underperform from Market Perform.
Walt Disney Co. (NYSE: DIS) was reiterated as Buy at Argus, but the real call here is that the firm raised its price target to $96 from $90. Argus is now the street’s highest analyst price target. The call is based on its deal with Dish and also investments in both the Parks and Studio divisions for the years ahead.
Other Key Analyst Calls
American Eagle Outfitters Inc. (NYSE: AEO) was downgraded to Underweight from Equal Weight by Morgan Stanley.
AmerisourceBergen Corp. (NYSE: ABC) was downgraded to Neutral from Buy at Goldman.
Church & Dwight Co. (NYSE: CHD) was downgraded to Neutral from Outperform at Credit Suisse, although the price target was raised to $66 from $63 in the call.
Clean Harbors Inc. (NYSE: CLH) was downgraded to Outperform from Top Pick at RBC Capital Markets.
Forest Labs Inc. (NYSE: FRX) was downgraded to Neutral from Overweight at Piper Jaffray.
Infinera Corp. (NASDAQ: INFN) was raised to Buy from Neutral with an $11.50 price target (versus a $8.45 close) by Goldman Sachs.
Motorola Solutions Inc. (NYSE: MSI) was downgraded to Sell from an already cautious Neutral rating at Goldman Sachs.
McKesson Corp. (NYSE: MCK) was maintained officially as a Buy but was added to the prized Conviction Buy List at Goldman Sachs.
PharMerica Corp. (NYSE: PMC) was raised to Outperform from Neutral and the price target was raised to $30 from $19 at Credit Suisse.
Silicon Laboratories Inc. (NASDAQ: SLAB) was started as Overweight by Piper Jaffray.
Urban Outfitters Inc. (NASDAQ: URBN) downgraded to Equal Weight from Overweight at Barclays.
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