Investing

Top Analyst Upgrades and Downgrades: Adobe, Corning, Costco, GrubHub, Kroger, Micron, Shopify, SLM, Walmart, Yelp and More

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Stocks were indicated to open marginally higher on Friday, but not so much that the direction of this day looked set. U.S. equity indexes remain near all-time highs at a time that most international markets are not close to their highs. One issue that stands out to U.S. investors is that they have seen less upside from buying on market pullbacks than in prior years. Investors also need to consider how they want to have their investments positioned for the rest of 2018.

24/7 Wall St. reviews dozens of analyst research reports each day of the week to find new ideas for investors and traders alike. Some analyst reports cover stocks to buy, but some of them cover stocks to sell or to avoid.

Additional commentary has been added on most of the daily analyst reports, along with trading history. The consensus analyst price targets and other valuation metrics are from the Thomson Reuters sell-side research service.

These are the top analyst upgrades, downgrades and initiations seen on Friday, September 14, 2018.

Adobe Systems Inc. (NASDAQ: ADBE) was up 0.3% at $268.52 on Thursday and was up less than 0.5% on Friday’s post-earnings reaction to a 52-week and all-time high of $270.94. Citigroup reiterated its Buy rating and raised its target to $325 from $275. KeyBanc reiterated its Overweight rating and raised its target to $286 from $276. Stifel reiterated its Buy rating and raised its target to $325 from $275, and Credit Suisse reiterated its Outperform rating and raised its target to $300 from $275.

ANGI Homeservices Inc. (NASDAQ: ANGI) was started as Outperform and the price target was set at $26 (versus a $22.80 prior close) at Wedbush Securities. The firm noted that the HomeAdvisor and Angie’s List combination has created a company with strong leadership and unmatched scale in a market highlighted with strong structural (and long-term) tailwinds.

Corning Inc. (NYSE: GLW) was raised to Buy from Neutral and the price target was raised to $40 from $32 at Citigroup. The stock closed up over 3% at $35.06 on Thursday and was indicated up another 1.2% at $35.45 on Friday. The consensus target price is $35.72.

Costco Wholesale Corp. (NASDAQ: COST) was downgraded to Market Perform from Outperform with a $235 price target (versus a $241.27 close) at Wells Fargo.

Dunkin’ Brands Group Inc. (NASDAQ: DNKN) was downgraded to Sector Perform from Outperform, while the price target was maintained at $75 (versus a $76.02 close), at RBC Capital Markets.

D.R. Horton (NYSE: DHI) was reiterated as Outperform but was added to the Best Ideas List at Wedbush. The firm noted that D.R. Horton has expanded its product lines into the luxury Emerald line, the entry-level Express brand, and active-adult brand Freedom Homes, while it has also maintained a core focus on entry-level to move-up housing with the D.R. Horton brand of homes.

eBay Inc. (NASDAQ: EBAY) was started as Neutral at Wedbush. Shares closed up 0.5% at $34.44 on Thursday, in a 52-week range of $32.85 to $46.99 and with a consensus target price of $44.41.

Etsy Inc. (NASDAQ: ETSY) was started as Neutral at Wedbush. Shares closed up 2.8% at $50.55 on Thursday, in a 52-week range of $15.27 to $50.91 and a consensus target price of $48.44.

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Genprex Inc. (NASDAQ: GNPX) was started as Buy and assigned a $5 price target (versus a $2.20 close) at Maxim Group.

GoDaddy Inc. (NYSE: GDDY) was started as Neutral at Wedbush. Shares closed up 1.3% at $84.00 on Thursday, in a 52-week range of $42.54 to $84.45 and with a consensus target price of $83.14

Groupon Inc. (NASDAQ: GRPN) was started as Neutral at Wedbush. Shares closed down 0.3% at $3.82 on Thursday, in a 52-week range of $3.72 to $5.99 and with a consensus target price of $5.39.

GrubHub Inc. (NYSE: GRUB) was started as Outperform and assigned a $180 price target (versus a $142.60 close) at Wedbush. It also was added to the Wedbush Best Ideas List and is a top pick in its coverage, noting that it is a $13 billion company dominating a $250 billion market that is barely penetrated today.

Kroger Co. (NYSE: KR) was maintained as Outperform but the price target was cut to $32 from $33 at Credit Suisse. This is a day after Kroger fell 9.9% after earnings. The consensus target price is $30.68.

Leaf Group Ltd. (NYSE: LEAF) was started as Outperform and assigned a $14 price target (versus a $10.10 close) at Cowen.

Micron Technology Inc. (NASDAQ: MU) was maintained as Outperform but the price target was cut to $70 from $80 at Macquarie. The consensus analyst target was $83.60, but analysts have started trimming targets more aggressively in the chip space of late.

Shopify Inc. (NYSE: SHOP) was started as Outperform and assigned a $177 price target (versus a $155.50 close) at Wedbush.

SLM Corp. (NASDAQ: SLM) was added to the Best Ideas List at Wedbush, noting that SLM will continue to build and hold market share over time in the undergraduate student loan arena. Another benefit is that its move into graduate school loans arguably will double the size of its addressable market.

Tandem Diabetes Care Inc. (NASDAQ: TNDM) was downgraded to Neutral from Outperform with a $47 price target (versus a $48.50 close) at Robert W. Baird.

Taylor Morrison Home Corp. (NYSE: TMHC) was downgraded to Underweight from Equal Weight with a $20 price target (versus a $19.48 close) at Barclays.

Valvoline Inc. (NYSE: VVV) was downgraded to Underweight from Neutral and the price target was lowered down to $20 from $22 (versus a $22.33 close) at JPMorgan.

VF Corp. (NYSE: VFC) was raised to Outperform from Market Perform with a $106 price target (versus a $91.21 close) at Cowen.

Walmart Inc. (NYSE: WMT) was started with a Neutral rating and assigned a $101 price target (versus a $94.18 close) at Goldman Sachs. The consensus target price is $104.01.

Yelp Inc. (NYSE: YELP) was added to the Best Ideas List at Wedbush, as the firm believes the business model changes being implemented will help accelerate growth that is not currently reflected in investor sentiment or valuation.

Zillow Group Inc. (NASDAQ: Z) was started as Neutral at Wedbush. Shares closed down 2% at $46.60 on Thursday, in a 52-week range of $38.25 to $65.70 and with a consensus target price of $51.60.

Thursday’s top analyst calls were in shares of American Superconductor, Galapagos, Humana, Intel, Philips Electronics, Pinduoduo, Qualcomm, Wayfair and many more.

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