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Top Analyst Upgrades and Downgrades: Diamondback Energy, Dr Pepper, Fortinet, KB Home, Netflix, Sirius XM and More
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The futures traded down big Tuesday morning as investors absorbed another day of losses on Monday. While the major indices came way off the lows that were printed early in trading Monday morning, and small cap stocks as represented by the Russell 2000 actually hit an all-time high, concerns over the potential fallout from the trade tariffs are the major issue on investors’ minds.
Some investors are reconsidering what the nine-year bull market may bring for the rest of 2018 and beyond. It has become very clear that the multiyear trend of buying pullbacks is now more vulnerable to sellers, volatility and each major news headline. Many investors are finding it harder to decide how they want their assets positioned for the longer term.
24/7 Wall St. reviews dozens of analyst research reports each day of the week to find new investing and trading ideas for our readers. Some of the top analyst reports cover stocks to buy. Other analyst calls cover stocks to sell or to avoid.
Additional color and commentary have been added on some of these daily analyst calls. The consensus analyst price target data are from the Thomson Reuters sell-side research service.
These were the top analyst upgrades, downgrades and other research calls from Tuesday, June 19, 2018.
Commercial Metals Co. (NYSE: CMC) was downgraded to Underperform from Neutral at Merrill Lynch. The 52-week trading range for the stock is $17.05 to $26.72. The consensus price objective is $26.10. The stock closed Monday at $24.08 a share.
Diamondback Energy Inc. (NASDAQ: FANG) saw its price target raised at Jefferies to $177 from $170, and the analysts reiterated the firm’s Buy rating. The consensus price target for the Permian Basin exploration and production company is $159.38. The shares closed Monday at $122.58, up over 6% on the day.
Dr Pepper Snapple Group Inc. (NYSE: DPS) was downgraded to Hold from Buy with a $122 price target at Stifel. That compares with a consensus price target of $125.29. The analysts basically cite the stock’s outperformance as the reason. The shares closed Monday at $121.80.
Fortinet Inc. (NASDAQ: FTNT) was downgraded to Market Perform from Outperform at Cowen. The 52-week trading range is $35.44 to $66.32, and the consensus price objective is $58.85. The shares closed Monday at $66.17, so this looks like a valuation call.
Helmerich and Payne Inc. (NYSE: HP) was raised to Buy from Hold and saw its price target raised to $80 from $72 at Jefferies. The consensus price target is $68. The analysts cite the 13% price drop over the past month as unwarranted. The stock closed Monday at $63.87.
KB Home (NYSE: KBH) was raised to Neutral from Sell at Citigroup. The stock has traded between $20.68 and $28.80 in the past year. The consensus price target is $32.03, and shares closed Monday at $25.67.
Meritage Homes Corp. (NYSE: MTH) had coverage resumed at Citigroup with a Buy rating and a $55 price target. The consensus price target is set at $55.73. The stock ended trading on Monday at $44.40.
Netflix Inc. (NASDAQ: NFLX) saw its price target raised to $460 from $375 at Monness Crespi & Hardt. The analysts cited engaging content, strong growth and improved margins. The consensus price target for the entertainment streaming behemoth is $334.95. The shares ended trading on Monday at $390.40.
Sirius XM Radio Holdings Inc. (NASDAQ: SIRI) was downgraded to Hold from Buy at Pivotal Research with a $7.75 price target. The consensus target for the satellite radio giant is $6.42. Closing Monday at $7.64, the stock has hit the analyst’s price target, so this is another valuation call.
Ulta Beauty Inc. (NASDAQ: ULTA) was started with a Buy rating and a $303 price target at Atlantic Equities. The consensus target for the beauty retail giant is $268.17. The stock has traded in a 52-week range of $187.96 to $299.97, and shares closed Monday at $247.26.
Other key analysts upgrades and downgrades were seen in the following:
Ally Financial Inc. (NYSE: ALLY) was started with a Neutral rating and a $28 price target at Nomura. That compares to the consensus target of $33.55. The stock closed Monday at $26.38.
Autoliv Inc. (NYSE: ALV) was resumed in coverage at Morgan Stanley with an Overweight rating and a price target of $180. The compares with a consensus target of $146.26. Share ended trading on Monday at $158.50.
B&G Foods Inc. (NYSE: BGS) was resumed in coverage with a Neutral rating and a $31 price target at Piper Jaffray. The consensus target of $32.10, and the stock closed Monday at $30.10.
BOK Financial Corp. (NASDAQ: BOKF) was raised to Overweight from Neutral at Piper Jaffray. The 52-week trading range for the shares is $77.10 to $107, and the consensus price target is $105.75. The stock closed Monday at $96.06 down almost 6%.
Beacon Roofing Supply Inc. (NASDAQ: BECN) was raised to Buy from Neutral at Citigroup. The 52-week trading range is $38.71 to $66.47, and the consensus price target is $59.23. The stock closed Monday at $44.29 a share.
Bluebird Bio Inc. (NASDAQ: BLUE) was raised to Outperform from In-Line at Evercore ISI. The stock has traded in a 52-week range of $85.65 to $236.17. The consensus price target is $216.67. The stock closed Monday at $176.65, down almost 4% on the day.
First Solar Inc. (NASDAQ: FSLR) is raised to Neutral from Underperform at Credit Suisse. The 52-week trading range is $35.38 to $81.72, and the consensus price target is set at $70.93. The stock ended Monday trading at $51.83.
Madrigal Pharmaceuticals Inc. (NASDAQ: MDGL) was downgraded to In-Line from Outperform at Evercore ISI. The stock has traded in a huge 52-week range of $13.10 to $325.98. The consensus price target is $321.17, and the shares closed Monday at $306.37.
Masco Corp. (NYSE: MAS) was raised to Buy from Neutral at Citigroup. The 52-week trading range is $35.79 to $46.45, and the consensus price target is $45.65. The stock closed Monday at $37.78.
In case you missed it, Monday’s top analyst upgrades and downgrades included BlackRock, Chevron, Disney, Intel, Kinder Morgan, Zillow and more.
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