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Top Analyst Upgrades and Downgrades: Alibaba, Dillard's, Home Depot, Jumia, Lowe's, Slack, SQM, Target, Wayfair and More
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Wednesday’s gains effectively erased that huge one-day drop last week, and the Federal Open Market Committee (FOMC) minutes did not offer enough vinegar to upset the markets late in the day, despite a small inversion in the yield curve that briefly took place. The Dow Jones industrials, S&P 500 and Nasdaq futures were all higher again on Thursday, but the 0.1% to 0.2% gains being seen were not strong enough to indicate any set bias or outcome for the day. It is important to keep in mind that the stock market hit all-time highs late in July and that the bull market is still well over 10 years old. Investors need to be giving strong consideration to how they want their portfolios and assets positioned as the end 2019 and the start of 2020 approaches.
24/7 Wall St. reviews dozens of analyst research reports each day of the week to find new ideas for traders and long-term investors alike. Some of the daily analyst calls cover stocks to buy, while some calls cover stocks to sell or to avoid.
We have provided these calls in a quick-hit summary for easy reading, and additional comments and trading data have been added on some of the calls. 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 on Thursday, August 22, 2019.
Alibaba Group Holding Ltd. (NYSE: BABA) was named as the Bull of the Day at Zacks, which said that the stock looks strong as it prepares to enter a new era. Shares closed down 1.1% at $175.24, and they have a 52-week range of $129.77 to $195.72. The consensus price target is $221.38.
Cedar Fair L.P. (NYSE: FUN) was raised to Buy from Hold at SunTrust Robinson Humphrey.
Cerner Corp. (NASDAQ: CERN) was raised to Buy from Hold at Argus.
Dillard’s Inc. (NYSE: DDS) was named as the Zacks Bear of the Day stock. The firm said that this retailer posted worse-than-expected results recently, and it is struggling to adapt to the e-commerce and delivery age.
Fluor Corp. (NYSE: FLR) was raised to Buy from Hold at Canaccord Genuity.
Home Depot Inc. (NYSE: HD) was reiterated as Overweight at Morgan Stanley, which raised its target to $225 from $210 after the earnings beat. Home Depot saw many analyst target hikes a day earlier, and its shares were up 1.5% at $220.40 on Wednesday, after having risen to $217.09 from $207.95 in the earnings reaction this week.
Jumia Technologies A.G. (NYSE: JMIA) was maintained as Outperform at Raymond James, but the firm did cut its target to $23 from $36 in the call. RBC Capital Markets raised it to Outperform from Sector Perform but cut its target price to $30 from $40. Shares closed down almost 17% at $12.27 on Wednesday’s post-earnings reaction. The stock has a post-IPO range of $11.30 to $49.77, and its consensus target price was $31 or so prior to calls like this.
Lowe’s Companies Inc. (NYSE: LOW) was reiterated as Overweight and its target was raised to $130 from $123 after earnings (shares up 10.3% at $108.00 on Wednesday) at Morgan Stanley. KeyBanc Capital Markets raised its target to $125 from $120 and reiterated its Overweight rating.
24/7 Wall St.Slack Technologies Inc. (NYSE: WORK) was started as Buy with a $40 price target at MKM Partners, with the firm noting that it trades at a discount in some metrics to many of its semi-peers. Shares closed up about 1% at $30.80 on Wednesday and were indicated to open up 3.2% at $31.80 on Thursday.
Sociedad Quimica y Minera de Chile S.A. (NYSE: SQM) was downgraded to Underweight from Neutral and the target price was lowered to $23 from $20 (versus a $25.43 prior close, after a 3.1% drop) at JPMorgan. SQM was indicated down 6.6% at $23.70 on Thursday, and its prior consensus target price had been closer to $41.
Splunk Inc. (NASDAQ: SPLK) was down 3.8% at $123.35 after beating earnings and signaling slower cash flow expectations, but it also announced a $1.05 billion acquisition of SignalFx. Wedbush Securities reiterated its Outperform rating with a $153 target price.
Synopsis Inc. (NASDAQ: SNPS) was reiterated as Outperform and the target price was raised to $160 from $150 (versus a $131.84 close) at Wells Fargo. KeyBanc Capital Markets reiterated it as Overweight and raised the target price to $153 from $152. Shares were indicated up 2.4% at $135.00 on Thursday, and the consensus target price was $133.88.
Target Corp. (NYSE: TGT) was up 20.4% at $103.00 on Wednesday after earnings, and the shares were indicated up another 1% or so on Thursday. Buckingham Research reiterated its Buy rating, but the price target was raised to $117 from $102. Morgan Stanley maintained its Equal Weight rating but launched its target price higher to $107 from $76 in the call. Citigroup upgraded Target to Buy from Neutral and raised its target to $130 from $80, and KeyBanc Capital Markets reiterated its Overweight rating and raised its target price to $120 from $110.
Tiffany & Co. (NYSE: TIF) was maintained as Outperform but the target price was cut to $100 from $115 at Oppenheimer. The stock closed up 2.7% at $84.53 on Wednesday and was indicated down marginally on Thursday. Its consensus target price was $107.64.
USANA Health Sciences Inc. (NYSE: USNA) was started with a Hold rating at Jefferies.
Wayfair Inc. (NYSE: W) was raised to Buy from Hold with a $150 target price (versus a $115.09 close) at Stifel.
24/7 Wall St.There are 15 great defensive stocks everyone will want to own ahead of the next major sell-off or a recession, but there is just one major problem: their valuations are at such nosebleed valuation levels that they might not be as defensive as thought for the past five years or more.
RBC Capital Markets is maintaining its positive views on four top chip stocks despite the China/trade-led volatility in the semiconductor space.
We have been quick to point out how energy stocks have been battered and then battered again all throughout 2019, but there are seven big cap oil and gas players that analysts on Wall Street want their firms’ clients buying now for big upside ahead.
Wednesday’s top analyst upgrades and downgrades included Baidu, BP, Ciena, Chevron, Cree, Exxon Mobile, Home Depot, Medtronic, Nvidia and Urban Outfitters and many more.
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