Top Analyst Upgrades and Downgrades: Alcon, Analog Devices, Big Lots, CACI, CenterPoint, Cree, Lyft, Teva, WellCare and More

Investing

Published: June 3, 2019 9:05 am

Last Updated: January 30, 2020 8:06 pm

Stocks were indicated to open marginally lower on Monday on continued international market reactions to trade war and tariff woes. That excuse may be getting rather old, but each day brings new information, and that’s what’s driving the markets right now, that and a yield curve that has started to invert too much to ignore. Those fears of “sell in May and go away” proved to be right, at least for now, with the three major equity indexes down 7% to 9% from their highs. Investors should be considering how they want their portfolios positioned for the rest of 2019 and beyond.

24/7 Wall St. reviews dozens of analyst research reports each day of the week in an effort to find new trading and investing ideas for our readers. Some of these daily analyst reports cover stocks to buy, but others cover stocks to sell or to avoid.

Additional commentary and trading data have been added on some of the daily analyst reports. The consensus analyst price targets and other valuation metrics are from the Refinitiv (Thomson Reuters) sell-side research service.

These are the top analyst upgrades, downgrades and initiations seen on Monday, June 3, 2019.

Alcon Inc. (NYSE: ALC) was started with an Outperform rating in recent weeks at Credit Suisse, and the firm reiterated that rating on Monday with a deeper explanation, as some investors still consider it to be expensive relative to its peers, noting that the margin and capital structure mechanics that drive these differences make the stock as attractive at current levels.

AmerisourceBergen Corp. (NYSE: ABC) was reiterated as Buy at Argus, with the independent research firm noting the PharMEDium consent decree.

Analog Devices Inc. (NASDAQ: ADI) was started with a Neutral rating and assigned a $90 price target (versus a $96.62 prior close) at Nomura/Instinet.

Big Lots Inc. (NYSE: BIG) was downgraded to Underperform from Buy at Merrill Lynch.

Black Knight Inc. (NYSE: BKI) was raised to Buy from Neutral and the target price was raised to $68 from $58 (versus a $56.69 close) at Goldman Sachs.

Booz Allen Hamilton Holding Corp. (NYSE: BAH) was started with an Overweight rating and assigned a target price of $70 (versus a $63.17 close) at Morgan Stanley.

Brinker International Inc. (NYSE: EAT) was raised to Neutral from Sell at UBS.

CACI International Inc. (NYSE: CACI) was started as Equal Weight at Morgan Stanley.

CenterPoint Energy Inc. (NYSE: CNP) was started with a Buy rating and assigned a $31 target price (versus a $28.44 close) at Mizuho.

Cortexyme Inc. (NASDAQ: CRTX) was started an Underperform rating and assigned a $14 target price at Credit Suisse. While the company’s target of Alzheimer’s disease speculation has a multibillion annual revenue potential if its COR388 proves to be marketable, Credit Suisse noted how basically every effort from other companies has come up way short and Cortexyme still has a lot to prove here. Canaccord Genuity started the stock at Buy with a $42 price target.

ALSO READ: Worried About Even More Tariffs? 4 Stocks to Buy With Very Limited Trade Exposure

Cree Inc. (NASDAQ: CREE) was downgraded to Market Perform from Outperform with a $55 target price (versus a $55.14 close) at BMO Capital Markets.

Cyclerion Therapeutics Inc. (NASDAQ: CYCN) was started with a Neutral rating and assigned a $15 target price at Credit Suisse.

Equinix Inc. (NASDAQ: EQIX) was started with a near-term Buy rating and assigned a 12-month price target of $550 at Argus. The firm was said the data center and IT facilities landlord has strong opportunities in the global colocation market and that it has grown both organically and through targeted acquisitions. The firm also called it undervalued at current levels, based on its strong growth prospects.

Infinera Corp. (NASDAQ: INFN) was downgraded to Underweight from Neutral at JPMorgan. Shares closed down 3.4% at $3.11 on Friday and were indicated down almost 4% more on Monday. The 52-week trading range is $3.00 to $10.25.

Lyft Inc. (NASDAQ: LYFT) was reiterated as Outperform at Credit Suisse, which noted that after management meetings its margin expansion thesis is still on track as the domestic ride-share market remains a rational duopoly and as there are multiple paths to expand Lyft’s revenues from every ride.

Marriott Vacations Worldwide Inc. (NYSE: VAC) was started as Neutral at JPMorgan.

NextCure Inc. (NASDAQ: NXTC) was started as Overweight and assigned a $25 target at Morgan Stanley. Piper Jaffray started it with an Overweight rating and a $26 target price. Its shares closed down 2.9% at $18.62 on Friday.

Science Applications International Corp. (NYSE: SAIC) was started as Overweight and assigned a $96 target price (versus a $76.74 close) at Morgan Stanley.

Targa Resources Corp. (NYSE: TRGP) was raised to Buy from Hold with a $48 target price at SunTrust Robinson Humphrey. It closed down 1.5% at $38.46 on Friday.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) was raised to Outperform from Perform with a $12 target price (versus an $8.65 close) at Oppenheimer.

WellCare Health Plans Inc. (NYSE: WCG) was downgraded to Market Perform from Outperform at BMO Capital Markets.

While many were surprised the U.S. president threatened Mexico with tariffs, it makes sense given the global trade issues to look for companies with negligible if any export worries. We found four stocks rated Buy at Merrill Lynch that fit the bill.

Credit Suisse now expects that the Federal Open Market Committee (FOMC) will have to cut rates by 25 basis points this summer after the significant increase in business uncertainty during a period of escalating trade disputes and deteriorating economic data. In assessing the China trade war impact, Credit Suisse outlined how the United States is considering adding more names to the trade blacklist, noting that industrials and hardware have the highest risks because of their reliance on technologies from the United States and other developed countries.

Friday’s top analyst calls included Alkermes, Apple, Canada Goose, FireEye, J.Jill, Kraft Heinz, Uber Technologies, Vonage and many more.

24/7 Wall St.
Are Utilities Losing Their Defensive Appeal Ahead of Summer?

Credit Card Companies Are Doing Something Nuts

Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.

It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.

We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.