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Top Analyst Upgrades and Downgrades: Alphabet, Avon, Bank of America, Intel, Roku, Snap, Western Digital and Many More
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Stocks have risen in the first two trading days of 2018 to all-time highs, and Thursday’s opening bell was indicated higher as well. The Dow has a path to rise to over 26,400 in 2018, and Dow 25,000 is already within sight. Investors are deciding how they want to be positioned in 2018. It turns out that accelerated economic growth, higher earnings growth and tax reform are continuing to entice investors. Those same investors are hunting for new investing and trading ideas to generate gains and income into 2018 and beyond.
24/7 Wall St. reviews dozens of analyst research reports each day of the week to find new investing and trading ideas for investors and traders alike. Some of the daily analyst reports and research reports cover stocks to buy. Others cover stocks to sell or to avoid.
Additional color and commentary has been added on most of these daily analyst calls. Consensus analyst price targets mentioned and other valuation metrics are from the Thomson Reuters sell-side research service.
These were the top analyst upgrades, downgrades and other research calls from Thursday, January 4, 2018.
Alphabet Inc. (NASDAQ: GOOGL) was reiterated as Outperform and the price target was raised to $1,230 from $1,150 (versus a $1,091.52 prior close) at Cowen. Alphabet, or Google as most of us still call it, has a 52-week trading range of $805.92 to $1,104.08. It also has a consensus analyst target price of $1,181.90.
Avon Products Inc. (NYSE: AVP) was downgraded to Underperform from Neutral and the price objective was lowered to $2.50 from $3.00 (versus a $2.22 close) at Merrill Lynch. Avon shares were indicated down about 3% on the downgrade, and its 52-week range is $1.85 to $6.03.
Bank of America Corp. (NYSE: BAC) has seen multiple analyst upgrades on its target prices this week, and now Credit Suisse has reiterated its Outperform rating and raised its price target to $35 from $32. Shares have seen a 52-week trading range of $22.01 to $30.03. They were indicated up 0.6% at $29.99 on Thursday but sold off on Wednesday by 0.3%. Update after the opening bell: Shares hit a post-recession high of $30.40 briefly on Thursday.
Intel Corp. (NASDAQ: INTC) was reiterated as Outperform at Credit Suisse, noting that the current security threat that hit the stock is close to a non-issue and the shares overreacted to the downside because the security concern is not unique to Intel, it is not expected to create a major financial issue and the issue should be fixed soon. Intel shares closed down 3.4% at $45.26 on Wednesday due to the security news, and despite this call its stock was indicated down another 2.4% at $44.17 on Thursday. Intel’s 52-week range is $33.23 to $47.64.
Roku Inc. (NASDAQ: ROKU) was downgraded to Underweight from Equal Weight at Morgan Stanley, and the firm has a very negative price target of just $30. The firm believes the good news on Roku is now already price in and then some after close to a 300% rise since its IPO. Roku shares were down 7% at $51.25, with a post-IPO range of $15.75 to $58.80. Its consensus target price was last seen at $31.60.
Snap Inc. (NYSE: SNAP) was downgraded to Underperform from Market Perform and the price target was cut to $11 from $12 at Cowen. Shares closed up 2.4% at $15.31 on Wednesday but were indicated down 2.4% at $14.93 on Thursday, and the social media company (not a camera company as it wants to represent itself) has a 52-week range of $11.28 to $29.44 and a consensus price target of $12.78. Update after the opening bell: Snap shares were down even further (−5%) than the initial indications.
Western Digital Corp. (NASDAQ: WDC) was downgraded to Market Perform from Outperform and the price target was cut to $85 from $120 (versus an $82.67 close) at BMO Capital Markets. Western Digital shares were indicated down 1.2% at $81.67 on Thursday, in a 52-week range of $69.10 to $95.77.
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Other key analyst calls were seen as follows:
Abbvie Inc. (NYSE: ABBV) was reiterated as Buy and the price target was raised to $120 from $115 (versus a $99.95 close) at Jefferies.
Alexion Pharmaceuticals Inc. (NASDAQ: ALXN) was downgraded to Outperform from Strong Buy at Raymond James.
Baker Hughes, a GE Company (NYSE: BHGE) was maintained as Hold but the price target was lowered to $35 from $38 at Jefferies. Shares closed at $33.53 on Wednesday and were actually indicated higher on Thursday.
Black Knight Inc. (NYSE: BKI) was raised to Buy from Hold and its price target was raised to $52 from $42 at Deutsche Bank.
BlackBerry Ltd. (NYSE: BB) saw its price target raised to $15 from $13 at CIBC after a positive round of autonomous driving car news with Baidu. Its shares were indicated to open a tad lower after closing at $13.53 on Wednesday, but they were trading at just $11.17 on the last trading day of 2017.
Citigroup Inc. (NYSE: C) was reiterated as Outperform and the price target was raised to $86 from $83 (versus a $74.59 close) at Credit Suisse. Update after the open: Citi shares were up 1.5% at $75.70, in a 52-week range of $55.23 to $77.92 and with a consensus target price of $80.41.
Coca-Cola Co. (NYSE: KO) was given two calls on Thursday. One was that it is on the top 2018 picks list from Credit Suisse. The second was that Wells Fargo reiterated its Outperform rating and raised its price target to $52 from $51. The shares closed at $45.44 on Wednesday, in 52-week range of $40.22 to $47.48 and with a consensus analyst target of $49.06.
Commercial Metals Co. (NYSE: CMC) was reiterated as Outperform and the price target was raised to $27 from $24 at Credit Suisse. The firm called it a rebar beast that has awakened.
CVS Health Corp. (NYSE: CVS) was raised to Strong Buy from Outperform at Raymond James. CVS closed at $73.20 on Wednesday and was indicated up over 2% on Thursday. The 52-week range is $66.45 to $84.72.
DaVita Inc. (NYSE: DVA) was raised to Buy from Neutral and the price objective was raised to $85 from $75 (versus a $72.91 close) at Merrill Lynch. The shares were indicated up 2% at $74.30 on Thursday.
Diamond Offshore Drilling Inc. (NYSE: DO) was downgraded to Underperform from Hold at Jefferies.
Domino’s Pizza Inc. (NYSE: DPZ) was raised to Outperform from Neutral and the target price was raised to $220 from $205 at Credit Suisse.
Edwards Lifesciences Corp. (NYSE: EW) was raised to Overweight from Equal Weight and the price target was raised to $135 from $125 at Barclays.
Endo International PLC (NASDAQ: ENDP) was started as Outperform and assigned a $12 price target at Leerink. The stock closed up 9.4% at $8.86 on Wednesday and was indicated up another 5% at $9.30 on Thursday.
Energizer Holdings Inc. (NYSE: ENR) was raised to Buy from Hold and the target price was raised to $58 from $50 at Deutsche Bank.
F5 Networks Inc. (NASDAQ: FFIV) was raised to Outperform from Market Perform and the price target was raised to $156 from $122 (versus a $134.04 close) at BMO Capital Markets. Shares of F5 Networks were indicated to open up almost 2.5% on the news.
Facebook Inc. (NASDAQ: FB) was reiterated as Outperform and the price target was raised to $220 from $200 (versus a $184.67 close) at Cowen. Facebook shares have a 52-week range of $118.32 to $186.21, and the consensus price target on the leader of social media was almost $209 ahead of the call.
Gener8 Maritime Inc. (NYSE: GNRT) was downgraded to Neutral from Buy at UBS.
GrubHub Inc. (NYSE: GRUB) was maintained as Neutral but the price target was raised to $65 from $58 at Credit Suisse. The consensus analyst target is very close at $64.30. But shares closed at $71.32, and they have a 52-week range of $32.43 to $74.81.
Halliburton Co. (NYSE: HAL) was reiterated as Buy and the price target was raised to $57 (versus a $50.50 close) at Jefferies. Its 52-week range is $38.18 to $58.78, and the consensus target price is $53.16.
HCA Healthcare Inc. (NYSE: HCA) was downgraded to Underperform from Neutral and the price objective was cut to $90 from $94 at Merrill Lynch. The stock was indicated down 1% at $86.20 after the call, and it has a 52-week range of $71.18 to $91.03.
JPMorgan Chase & Co. (NYSE: JPM) was reiterated as Outperform and the target was raised to $120 from $110 at Credit Suisse. The shares were indicated up over 1% at almost $109, and that will mark an all-time high.
Mastercard Inc. (NYSE: MA) saw a mixed call, in which it was maintained as Outperform but removed from the top picks list, while the price target was raised to $180 from $159 (versus a $153.82 close) at RBC Capital Markets.
Newell Brands Inc. (NYSE: NWL) was maintained as Market Perform but the price target was raised to $31 from $29 (versus a $31.83 close) at Wells Fargo.
Nuvasive Inc. (NASDAQ: NUVA) was raised to Buy from Underperform with a $71 price target (versus a $60.77 close) at Needham.
Procter & Gamble Co. (NYSE: PG) was maintained as Market Perform and the price target was lifted to $91 from $88 at Wells Fargo.
PNC Financial Services Group Inc. (NYSE: PNC) has seen two competing target moves: Credit Suisse raised its target price to $150 from $137, but Susquehanna lowered its price target to $135 from $136. Shares closed Wednesday at $144.59.
Republic Services Inc. (NYSE: RSG) was raised to Buy from Hold and the target price was raised to $73 from $70 at Stifel.
Schlumberger Ltd. (NYSE: SLB) was reiterated as Buy and the price target was raised to $78 (versus a $71,33 close) at Jefferies.
SunTrust Banks Inc. (NYSE: STI) has seen multiple target hikes on Thursday: Credit Suisse to $68 from $60, Goldman Sachs to $74 from $65 and Susquehanna to $68 from $59.
Tableau Software Inc. (NYSE: DATA) was downgraded to Sector Weight from Overweight at KeyBanc Capital Markets.
Taylor Morrison Home Corp. (NYSE: TMHC) was raised to Positive from Neutral and the price target was raised to $34 from $26 (versus a $26.56 close) at Susquehanna.
Transocean Ltd. (NYSE: RIG) was raised to Buy from Hold with a $13 price target at Jefferies.
UnitedHealth Group Inc. (NYSE: UNH) target price was raised to $269 from $244 at RBC Capital Markets, just a day after Goldman Sachs issued a new Buy rating with a $269 price target. The Dow stock was indicated up at $224.30 after closing at $221.16 the prior day.
Weatherford International PLC (NYSE:WFT) was downgraded to Underperform from Hold and the price target is now $2.75 (versus a $3.67 close) at Jefferies. Despite the cut, Weatherford was indicated to open quite close to its $3.67 prior closing price. It has a 52-week range of $3.08 to $7.09.
Wells Fargo & Co. (NYSE: WFC) saw two target price hikes on Thursday: Credit Suisse to $64 from $57 and Susquehanna to $64 from $59. Wells Fargo shares closed at $61.56 on Wednesday, and the stock was indicated up at almost $62.00 on Thursday. Its new 52-week range is $49.27 to $63.05.
Workday Inc. (NASDAQ: WDAY) was raised to Overweight with a $131 price target (versus a $105.17 close) at Keybanc Capital Markets. Shares were indicated up 2% or so on Thursday, and its 52-week range is $70.93 to $116.89.
Oppenheimer has released its top 10 predictions for 2018.
Wednesday’s top analyst calls were in Bank of America, Honeywell, IBM, Lululemon Athletica, Oracle, United Technology, Wells Fargo and many more (roughly 30 companies). There were also seven stocks that have now received multiple analyst upgrades target hikes.
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