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Top Analyst Upgrades and Downgrades: ADT, Microsoft, 3D Systems, Tesla, Yelp and More
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Stocks were indicated lower on Tuesday morning after a mixed fanfare on Monday. The end of January is nearing and the trend for 2015 does not yet seem set. Still, the one trend that has held up in at least the past two years is that investors kept buying dips and buying value and overlooked stocks. 24/7 Wall St. sees dozens of analyst research reports each morning of the week, hunting for new investment and trading ideas for its readers. Some analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid.
These are this Tuesday’s top analyst upgrades, downgrades and initiations.
ADT Corp. (NYSE: ADT) was started as Outperform with a price target of $39.00 (versus a $33.82 close) at Raymond James.
Microsoft Corp. (NASDAQ: MSFT) was downgraded to Neutral Buy and the price target was cut to $50 from $56 by Nomura Securities. The Rick Sherlund note said that a tougher transition is ahead and that the honeymoon phase is ending. Credit Suisse maintained its Outperform rating and $55 price target. J.P. Morgan cut the rating to Neutral from Overweight, and Citigroup cut its rating to Sell from Neutral.
3D Systems Corp. (NYSE: DDD) was downgraded to Hold from Buy at Jefferies. RBC Capital Markets has also maintained a Sector Perform rating, but it lowered the price target to $40 from $45. 3D Systems closed at $30.20 on Monday.
Tesla Inc. (NASDAQ: TSLA) was maintained as Outperform with a $325 price target (versus a $206.55 close) at Credit Suisse. The firm noted that an increase in order-to-delivery times and initial data on used Model S residual values has bolstered its confidence at a time when perceived risks drove down the shares.
Yelp Inc. (NYSE: YELP) was raised to Outperform from Market Perform with a $72 price target (versus a $55.41 close) at Raymond James.
The following stocks also had key analyst upgrades, downgrades or initiations seen from Wall Street research notes on Tuesday:
Cobalt International Energy Inc. (NYSE: CIE) was downgraded to Neutral from Buy at UBS.
Constant Contact Inc. (NASDAQ: CTCT) was raised to Outperform from Neutral and the price target was raised to $46 from $34 at Credit Suisse.
D.R. Horton Inc. (NYSE: DHI) was downgraded to Neutral from Buy at Citigroup.
E*Trade Financial Corp. (NASDAQ: ETFC) was reiterated Outperform and the valuation range was raised to $27 to $30 from $24 to $27 at Wells Fargo (versus a $24.19 close), based on its capital plan becoming more clear.
Hershey Co. (NYSE: HSY) was downgraded to Sector Perform from Outperform with a $113 price target (versus a $109.33 close) at RBC Capital Markets.
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Marathon Oil Corp. (NYSE: MRO) was downgraded to Neutral from Buy at UBS.
News Corp. (NASDAQ: NWSA) was raised to Outperform from Market Perform with a $18.50 price target (versus a $15.54 close) at FBR Capital Markets.
Norfolk Southern Corp. (NYSE: NSC) was raised to Buy with a price target of $125 (versus a $106.11 close) at Argus.
Ross Stores Inc. (NASDAQ: ROST) was downgraded to Neutral from Overweight with a $89 price target (versus a $95.23 close) at Piper Jaffray.
Select Comfort Corp. (NASDAQ: SCSS) was raised to Buy from Hold at Stifel.
Statoil ASA (NYSE: STO) was downgraded to Underperform from Neutral at Credit Suisse.
TerraForm Power Inc. (NASDAQ: TERP) was started as Buy with a $39 price objective (versus a $32.82 close) at Bank of America Merrill Lynch.
Virgin America Inc. (NASDAQ: VA) was raised to Outperform from Market Perform with a $43 price target (versus a $36.95 close) at Raymond James.
ALSO READ: Why GE Will Keep Raising Its Dividend Ahead
In case you missed Monday’s top analyst upgrades, downgrades and initiations, they were in shares of Bed Bath & Beyond, Family Dollar, Garmin, McDonald’s, Ruckus Wireless, UPS, Verisign and a dozen or so other stocks.
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