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Top Analyst Upgrades and Downgrades: Ariad Pharma, Comcast, ConEd, Electronic Arts, Kinder Morgan, 3M, Time Warner and More
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Stocks were indicated higher on Monday, on what is truly a “Merger Monday.” Earnings season has gotten off to a decent start. Investors still appear to be willing to buy each pullback, even considering that the stock market is at high valuations, the bull market is seven and a half years old and the Federal Reserve wants to raise interest rates. Investors are also looking for new ideas to generate gains or income ahead.
24/7 Wall St. reviews dozens of analyst research reports each morning. The goal is to find new investing and trading ideas for our readers. Some analyst research reports cover stocks to buy, and some reports feature stocks to sell or avoid.
These are the top analyst upgrades, downgrades and initiations seen on Monday morning:
Ariad Pharmaceuticals Inc. (NASDAQ: ARIA) was downgraded to Underweight from Neutral at JPMorgan. The stock was down 3.7% at $10.38 on Friday and indicated down almost 4% at $9.97 early Monday.
Comcast Corp. (NASDAQ: CMCSA) was raised to Outperform from Neutral and the price target was raised to $77 from $69 (versus a $64.06 prior close) at Macquarie. It has a 52-week trading range of $52.34 to $68.36 and a consensus analyst price target of $52.34 to $68.36.
Consolidated Edison Inc. (NYSE: ED) was raised to Hold from Sell with a $74 price target (versus a $73.17 close) at Deutsche Bank. ConEd has a 52-week range of $60.30 to $81.88 and a consensus price target of $74.43.
Electronic Arts Inc. (NASDAQ: EA) was downgraded to Neutral from Buy at Merrill Lynch. It has a 52-week range of $53.01 to $86.07 and a consensus price target of $89.81.
Kinder Morgan Inc. (NYSE: KMI) was raised to Strong Buy from Outperform and the target price was raised to $27 (versus a $21.11 close) at Raymond James. It was also raised to Outperform from Market Perform with a $26 price target (versus a $21.11 close) at BMO Capital Markets. The stock took multiple upgrades last week as well. Kinder Morgan has a 52-week range of $11.20 to $28.54 and a consensus price target of $24.26.
3M Co. (NYSE: MMM) was raised to Overweight from Equal Weight with a $194 price target (versus a $169.50 close) at Barclays. The 52-week range is $134.64 to $182.27, and the consensus analyst target is $180.87.
Time Warner Inc. (NYSE: TWX) is being acquired by AT&T and many analysts have issued their exit-downgrades on the news pop. Time Warner was downgraded to Neutral from the Conviction Buy list at Goldman Sachs, and RBC Capital Markets downgraded it to Sector Perform from Outperform. Time Warner also took downgrades from the likes of Evercore ISI, Atlantic Equities, Pivotal Research and many more. Shares closed up 7.8% at $89.48 on Friday, and the new 52-week range is $55.53 to $94.44.
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Other key analyst upgrades and downgrades were seen as follows:
Arcos Dorados Holdings Inc. (NYSE: ARCO) was raised to Overweight from Equal Weight and the price target was raised to $8 from $5 (versus a $6.10 close) at Morgan Stanley.
Avis Budget Group Inc. (NYSE: CAR) was started as Neutral with a $30 price target (versus a $31.38 close) at Goldman Sachs.
Atara Biotherapeutics Inc. (NASDAQ: ATRA) was started with a Buy rating and assigned a $23 price target (versus a $14.90 close) at Jefferies.
Dick’s Sporting Goods Inc. (NYSE: DKS) was raised to Outperform from Market Perform with a $64 price target (versus a $56.78 close) at Cowen.
Hertz Global Holdings Inc. (NYSE: HTZ) was started with a Sell rating and issued a $29 price target (versus a $32.94 close) at Goldman Sachs.
Jack in the Box Inc. (NASDAQ: JACK) was started with a Sell rating and assigned an $88 price target at Goldman Sachs.
Qorvo Inc. (NASDAQ: QRVO) was started as Overweight and with a $72 price target (versus a $54.70 close) at JPMorgan.
Rockwell Automation Inc. (NYSE: ROK) was raised to Overweight from Equal Weight with a $141 price target (versus a $122.99 close) at Barclays.
Reynolds American Inc. (NYSE: RAI) was downgraded to Underperform from Outperform with a $55 price target (versus a $53.78 close) at CLSA.
Skyworks Solutions Inc. (NASDAQ: SWKS) was started with a Neutral rating and given an $88 price target (versus a $77.47 close) at JPMorgan.
Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) was downgraded to Neutral from Buy at Mizuho.
United Rentals Inc. (NYSE: URI) was downgraded to Equal Weight from Overweight and the price target was cut to $81 from $85 at Morgan Stanley.
Vertex Pharmaceuticals Inc. (NASDAQ: VRTX) was downgraded to Neutral from Buy and the price target was cut to $85 from $155 at H.C. Wainwright.
VMware Inc. (NYSE: VMW) was raised to Outperform from Market Perform at Cowen.
Friday’s top analyst upgrades and downgrades were in AT&T, Chesapeake Energy, Lululemon Athletica, Microsoft, PayPal, Wal-Mart, Yahoo and about a dozen more.
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