Top Analyst Upgrades and Downgrades: Datadog, Delta Air, Eli Lilly, FedEx, Halliburton, Kinder Morgan, Skechers, Teladoc, Waste Management and More

Investing

Published: December 18, 2019 8:50 am

Last Updated: January 30, 2020 12:03 pm

Stocks have hit all-time highs again this week on the heels of last week’s phase-one “announced but unsigned” trade pact between the United States and China. Stocks were indicated marginally higher on Wednesday morning, but with less than 0.1% gains in any of the indexes the outcome of the day seemed far from set. Investors rightfully have been moving away from those imminent recession calls in favor of growth and risk again as they are seeing higher forecasts for 2020. That said, many pressing issues, risks and potential pitfalls remain, as the bull market has raged on for longer than a decade. Investors need to consider what changes they should be making for their portfolios and assets heading into 2020.

24/7 Wall St. reviews dozens of analyst research reports each day of the week. Our goal is 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 calls. The consensus analyst price targets and other valuation metrics are from the Refinitiv sell-side research service.

These are the top analyst upgrades, downgrades and initiations for Wednesday, December 17, 2019.

Axos Financial Inc. (NYSE: AX) was started as Outperform with a $35 target price (versus a $29.78 prior close) at Wedbush Securities.

Boston Properties Inc. (NYSE: BXP) was downgraded to Neutral from Overweight at JPMorgan.

Cerence Inc. (NASDAQ: CRNC) was reiterated as Outperform with a $23 target price (versus an $18.91 close) at Wedbush, with the firm noting a strong first quarter already out of the gates and that momentum is building into 2020.

Children’s Place Inc. (NASDAQ: PLCE) was named as the Zacks Bear of the Day stock. The firm said that this stock is a falling knife. Shares last closed at $61.58 and have a consensus price target of $64.33.

Datadog Inc. (NASDAQ: DDOG) was started with a Buy rating and a $50 target price (versus a $37.18 close) at Rosenblatt.

Delta Air Lines Inc. (NYSE: DAL) was raised to Buy from Hold with a $70 target price (versus a $58.69 close) at Deutsche Bank.

Eli Lilly & Co. (NYSE: LLY) was raised to Overweight from Equal Weight and the target price was raised to $150 from $115 at Morgan Stanley.

FedEx Corp. (NYSE: FDX) was reiterated as Outperform and the target price was raised to $170 from $168 at Credit Suisse.

Halliburton Co. (NYSE: HAL) was downgraded to Market Perform from Outperform with a $23 target price at BMO Capital Markets.

Healthcare Trust of America Inc. (NYSE: HTA) was raised to Overweight from Neutral at JPMorgan.

Kimco Realty Corp. (NYSE: KIM) was downgraded to Neutral from Overweight and the target price was lowered to $21 from $22 at JPMorgan.

Kinder Morgan Inc. (NYSE: KMI) was started with a Neutral rating and a $23 price target at Piper Jaffray. Kinder Morgan closed down 0.3% at $20.51, and it has a consensus target price of $22.00.

Republic Services Inc. (NYSE: RSG) was started with a Neutral rating and a $99 target price at CIBC.

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Simon Property Group Inc. (NYSE: SPG) was downgraded to Neutral from Overweight and its target price was lowered to $162 from $170 at JPMorgan.

Skechers USA Inc. (NYSE: SKX) was started with a Buy rating and a $49 target price (versus a $41.490 close) at Deutsche Bank.

Southern Co. (NYSE: SO) was maintained with an Underperform rating at Credit Suisse, but the firm raised its target price to $64 from $60.

Stoke Therapeutics Inc. (NYSE: STOK) was started with an Outperform rating and a $31 target price (versus a $24.98 close) at Wedbush, with the firm noting that the company offers a productive approach to treating Dravet syndrome.

Synopsys Inc. (NASDAQ: SNPS) was named as the Bull of the Day at Zacks, which said that this company is the backbone of innovation for global electronics and is a safe way to invest in semiconductors. Shares most recently closed at $136.94 apiece, with a consensus price target of $152.99.

Teladoc Health Inc. (NYSE: TDOC) was reiterated as Overweight and the target price was raised to $86 from $75 at KeyBanc Capital Markets.

Texas Capital Bancshares Inc. (NASDAQ: TCBI) was downgraded to Neutral from Buy at Merrill Lynch.

Waste Management Inc. (NYSE: WM) was started as Outperform with a $130 target price at CIBC. Shares closed at $112.96 ahead of the call, with a 52-week range of $83.49 to $121.77 and a consensus target price of $124.73.

World Acceptance Corp. (NASDAQ: WRLD) was raised to Neutral from Sell at Janney, but the firm maintained its $87 target price. The stock previously closed down 2.5% at $87.84, and it has a 52-week trading range of $87.40 to $175.78.

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Credit Suisse has issued its 2020 Research Outlook and global equity strategy, featuring themes, sectors and styles. The firm’s key themes for 2020 include climate change, technical disruption (in cheap and non-disrupted areas) and spending on infrastructure and non-U.S. defense. Credit Suisse’s top macro-theme is a strong preference for emerging market exposure, and it has increased its views on utilities (despite macro views and valuations) due to their improving outlook.

SunTrust Robinson Humphrey is positive on both Electronic Arts Inc. (NASDAQ: EA) and Activision Blizzard Inc. (NASDAQ: ATVI) with Buy ratings for 2020 ahead of the SonyPS and Xbox upcoming console releases due in time for Christmas of 2020.

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Tuesday’s top analyst upgrades and downgrades included Alcoa, Bed Bath & Beyond, Boeing, CenturyLink, DuPont, FedEx, Groupon, Johnson & Johnson, Micron Technology, Microsoft, WPX Energy and many more.

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