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Top Analyst Upgrades and Downgrades: Alkermes, Cisco, Gap, Rackspace, SouFun, Verizon and More
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Stocks were getting pounded lower on Tuesday, following overseas market selling and as bonds have sold off. One thing that may bring comfort is that investors have bought stocks on every single pullback for almost four years now. Investors want value and overlooked opportunities. 24/7 Wall St. reviews dozens of analyst research reports each day to find new trading and investment ideas for its readers. Some of these analyst calls cover stocks to buy, while others cover stocks to sell or avoid.
These are Tuesday’s top analyst upgrades, downgrades and initiations.
Alkermes PLC (NASDAQ: ALKS) was started as Outperform and was given a $75 price target (versus a $59.51 close) at Credit Suisse. While this is due to an analyst change rather than a change to the company fundamental views, the consensus price target is lower at $68.64 and the 52-week range is $38.49 to $75.17.
Cisco Systems Inc. (NASDAQ: CSCO) was reiterated as Outperform at RBC Capital Markets, and the price target was raised to $33 from $31 (versus a $29.21 close). This is just a day after it was raised to Overweight from Sector Perform at Pacific Crest. Cisco’s consensus analyst price target is now $30.40.
Gap Inc. (NYSE: GPS) was reiterated as Neutral at Sterne Agee CRT, and the price target was cut to $38 from $41. Janney Capital Markets reiterated its Neutral rating and $43 price target.
Rackspace Hosting Inc. (NYSE: RAX) closed down about 1.6% ahead of earnings on Monday at $53.13, and the guidance had shares down 13% more at $45.90 in early bird trading on Tuesday. The Web hosting and cloud services provider was downgraded to Equal Weight from Overweight and the price target was cut to $49 from $55 at Morgan Stanley. CLSA downgraded it to Outperform from Buy. Credit Suisse maintained an Outperform rating but lowered its price target to $54 from $57.
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SouFun Holdings Ltd. (NYSE: SFUN) was downgraded to Hold from Buy and the price target on the American depositary shares was cut to $7.20 from $9.50 (versus a $8.06 close, after a 6% gain on Monday) at Deutsche Bank. SouFun has a 52-week range of $5.25 to $13.40 and a consensus price target of about $9.00.
Verizon Communications Inc. (NYSE: VZ) was downgraded to Underperform from Neutral at Macquarie. While price target data was not seen, Verizon’s $49.80 closing price is against a consensus analyst price target of $51.60, as well as a 52-week range of $45.09 to $53.66.
Other key analyst upgrades and downgrades on Tuesday were seen in the following stocks:
AG Mortgage Investment Trust Inc. (NYSE: MITT) was downgraded to Market Perform from Outperform at Keefe Bruyette & Woods.
Anthera Pharmaceuticals Inc. (NASDAQ: ANTH) was raised to Neutral from Sell at Citigroup. Anthera closed at $4.48 on Monday, against a 52-week range of $1.46 to $6.37.
Brookfield Renewable Energy Partners L.P (NYSE: BEP) was downgraded to Underperform from Neutral at Credit Suisse, and the firm said that it is awaiting the benefits of distressed investing.
Cosan Ltd. (NYSE: CZZ) was started as Buy with a $9.50 price target (versus a $6.98 close) at Goldman Sachs.
Crestwood Equity Partners L.P. (NYSE: CEQP) was raised to Equal Weight from Underweight but the price target was cut to $6 from $7 (versus a $5.30 close) at Barclays.
Douglas Emmett Inc. (NYSE: DEI) was raised to Outperform from Market Perform at Wells Fargo.
Edwards Lifesciences Corp. (NYSE: EW) was raised to Overweight from Neutral at JPMorgan.
Hecla Mining Co. (NYSE: HL) was maintained as Neutral but earnings estimates were cut after earnings at Sterne Agee CRT.
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HudBay Minerals Inc. (NYSE: HBM) was downgraded to Hold from Buy at Canaccord Genuity.
Intelsat S.A. (NYSE: I) was downgraded to Underweight from Equal Weight with a $10 price target (versus a $11.96 close) at Morgan Stanley.
Intuitive Surgical Inc. (NASDAQ: ISRG) was started as Neutral with a $505 price target (versus a $496.37 close) at Piper Jaffray.
Juniper Networks Inc. (NYSE: JNPR) was raised to Buy from Neutral and the price target was raised to $34 from $27 (versus a $27.09 close) at Bank of America Merrill Lynch.
LivePerson Inc. NASDAQ: LPSN) was downgraded to Neutral from Outperform and the price target was slashed to $8 from $19 (versus a $9.46 close) at Credit Suisse. The call is after losing AT&T as a pay-for-performance chat customer.
MercadoLibre Inc. (NASDAQ: MELI) was downgraded to Hold from Buy at Stifel.
National CineMedia Inc. (NASDAQ: NCMI) was raised to Outperform from Market Perform with a $17.50 price target (versus a $14.90 close) at FBR Capital Markets.
Numerex Corp. (NYSE: NMRX) was downgraded to Market Perform from Outperform at Northland Securities.
Portland General Electric Co. (NYSE: POR) was downgraded to Neutral from Overweight and the price target was cut to $36 from $40 (versus a $34.83 close) at JPMorgan.
Priceline Group Inc. (NASDAQ: PCLN) was reiterated as Buy with a $1,480 price target (versus a $1,186.38 close) and it was kept on the Focus List at Argus.
Public Storage (NYSE: PSA) was downgraded to Neutral from Buy, but the price target was raised to $220 from $200 (versus a $194.16 close) at Goldman Sachs.
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Rosetta Resources Inc. (NASDAQ: ROSE) was downgraded to Sector Weight from Overweight from KeyBanc Capital Markets.
Syngenta AG (NYSE: SYT) was raised to Market Perform from Underperform at Bernstein.
Tempur Sealy International Inc. (NYSE: TPX) was downgraded to Market Perform from Strong Buy at Raymond James.
Tokai Pharmaceuticals Inc. (NASDAQ: TKAI) was started as Outperform with a $38 price target (versus a $10.29 close) at Oppenheimer. The speculative call has huge upside based on a clear and favorable regulatory pathway as it addresses a clear unmet medical need in castration-resistant prostate cancer.
In case you missed Monday’s top analyst upgrades, downgrades and initiations, they included AOL, Cisco Systems, Etsy, GoDaddy, MannKind, Virtu Financial, Caterpillar, Nokia and over a dozen more companies.
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