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Top Analyst Upgrades and Downgrades: Amazon, Boeing, Micron, NBG, SanDisk, Marvell and More
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It is Wednesday, and stocks are poised for a real breather after hitting new highs in recent days. Investors are getting used to hearing that the market is hitting new highs, but also that this is now a stock picker’s market rather than a raging bull market. 24/7 Wall St. reviews dozens of analyst research reports from Wall Street firms and boutique firms each morning of the week. Our aim is to find new ideas for our readers. Some of the analyst reports are about stocks to buy, while some of them cover stocks to sell or to avoid.
These are this Wednesday’s top Wall Street analyst upgrades, downgrades and initiations.
Amazon.com Inc. (NASDAQ: AMZN) was maintained as Buy rating at Goldman Sachs, but the Internet retailing giant was added to the firm’s prized Conviction Buy List.
B/E Aerospace Inc. (NASDAQ: BEAV) fell sharply on Tuesday on a report that it was breaking into two companies rather than trying to sell itself off as one company. We have seen two downgrades so far: to Hold from Buy at Canaccord Genuity and to Hold from Buy at Jefferies.
Boeing Co. (NYSE: BA) was downgraded to Sector Perform from Outperform with a $145 price target (versus a $137.25 close) at RBC Capital Markets.
Marvell Technology Group Ltd. (NASDAQ: MRVL) was raised to Buy from Neutral with a $19 price target (versus a $14.83 closing price) at Nomura.
Micron Technology Inc. (NASDAQ: MU) was raised to Buy from Underperform at Bank of America Merrill Lynch, and the price target was raised to $40 from $32 in the call. Credit Suisse reiterated its Outperform rating, but raised its target all the way up to $50 from $30, based on strong demand trends from consumer and enterprise.
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Molson Coors Brewing Co. (NYSE: TAP) was raised to Buy from Underperform and the price target was raised to $80 from $55 (versus a $70.71 close) by Merrill Lynch.
National Bank of Greece S.A. (NYSE: NBG) was started with an Outperform rating at Credit Suisse, although the firm does note that it is skeptical about the bullish story for Greek banking stocks in general. The firm said that NBG is expected to cover its cost of capital in 2016 and 2017 under all three scenarios (bull, base, bear).
Prosperity Bancshares Inc. (NYSE: PB) was raised to Buy from Neutral and given a $71 price target (versus a $61.08 close) by Sterne Agee. The firm sees its core profitability metrics as being likely to remain above its peers.
Reynolds American Inc. (NYSE: RAI) was raised to Buy from Neutral and the price target was raised to $65 from $63 (versus a $59.26 close) at Merrill Lynch.
SanDisk Corp. (NASDAQ: SNDK) was raised to Buy from Underperform at Merrill Lynch, and the price target was raised to $125 from $80 in the call. Merrill Lynch had been positive before, but had exited its prior Buy rating after a large run up in the stock.
Stryker Corp. (NYSE: SYK) was raised to Buy with a $102 price target (versus a $85.10 close) at Argus. The firm believes that the pending merger of rivals Zimmer and Biomet may create sales disruptions that will allow Stryker to gain market share. Argus further said that Stryker may make a strategic acquisition that could be another catalyst for the stock.
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United Microelectronics Corp. (NYSE: UMC) was raised to Buy from Neutral with a $2.87 price target (versus a $2.35 close) by Merrill Lynch. The firm sees consolidation and improving execution, as well as growth from the Internet of Things.
Several other key reports were as follows:
The Bancorp Inc. (NASDAQ: TBBK) was downgraded to Neutral from Buy at Sterne Agee, mostly on regulatory concerns.
Entergy Corp. (NYSE: ETR) was raised to Neutral from Sell at UBS.
HD Supply Holdings Inc. (NYSE: HDS) was reinstated with an Outperform rating by Credit Suisse.
National Grid PLC (NYSE: NGG) was raised to Overweight from Neutral by HSBC.
Navios Maritime Holdings Inc. (NYSE: NM) was started as Buy and with a $14 price target at Canaccord Genuity.
Paragon Shipping Inc. (NASDAQ: PRGN) was started as Buy with a $12 price target (versus a $5.67 close) at Canaccord Genuity.
Safe Bulkers Inc. (NYSE: SB) was started as Buy with a $14 price target (versus a $8.82 close) at Canaccord Genuity.
Weibo Corp. (NASDAQ: WB) was started as Outperform at Credit Suisse.
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