Investing

Top Analyst Upgrades and Downgrades: Comerica, Costco, Caesars, GameStop, Goldman Sachs, Plug Power, Replimune, Tyson, Wells Fargo and More

Jon C. Ogg

Published: June 4, 2020 9:04 am

Last Updated: June 5, 2020 8:41 am

Stocks were indicated to open slightly lower on Thursday after several days of strength have made the market feel that much more decoupled from the base economy and current events. The S&P 500 had risen back over 3,100 and the Dow Jones industrials are over 26,000. The trend that the investing community has been looking toward is pivoting beyond the COVID-19 pandemic as the economy opens up, looking beyond the bad news dominating the media right now and beyond the economic recession and weak earnings.

24/7 Wall St. reviews dozens of analyst research reports each day of the week. Our goal is to find new ideas for long-term investors and short-term traders alike. Some analyst reports cover stocks to buy, and some cover stocks to sell or avoid.

What has happened in this last drive of the gains is that many analyst calls have included upgrades and price target hikes, but in many cases stocks are managing to move even beyond what the ratings and expectations might have indicated.

Remember, no single analyst report should be used as a sole basis for any buying or selling decision. Consensus analyst target prices are from Refinitiv.

These are the top analyst calls we have seen on Thursday, June 4, 2020.

American Eagle Outfitters Inc. (NYSE: AEO) was up over 14% at $11.80 on Wednesday after announcing that foot traffic was returning stronger than expected. Morgan Stanley raised it to Equal Weight from Underweight with an $11 target, and Deutsche Bank reiterated its Buy rating and raised its price target to $15 from $13.

Big Lots Inc. (NYSE: BIG) was named as the Bull of the Day at Zacks, which said that discount retailers could really clean up over the next few months. Shares most recently closed at $38.58 and have a consensus price target of $34.71.

Comerica Inc. (NYSE: CMA) was raised to Buy from Neutral and its target was raised to $50 from $35 (versus a $40.04 prior close) at B. Riley FBR.

Costco Wholesale Corp. (NASDAQ: COST) was reiterated as Hold at Deutsche Bank, but the firm raised its target by a dollar to $297 in that call.

Caesars Entertainment Corp. (NASDAQ: CZR) was reiterated as Buy and the price target was raised to $12 from $11 at Deutsche Bank, with more upside as the economy reopens and people begin traveling again.

Eldorado Resorts Inc. (NASDAQ: ERI) was up 9.5% at $38.88 on Wednesday and was indicated up another 6% at $41.10 on Thursday. Deutsche Bank reiterated its Buy rating but raised the price target to $57 from $38.

GameStop Corp. (NYSE: GME) was reiterated as Neutral with a $4.25 price target at Wedbush Securities, although the firm did note that the coming console refresh from Xbox and PlayStation likely will help sentiment and that the company should be a primary beneficiary of that. Shares closed up 6.2% at $4.44, and the consensus price target is $3.89.

Goldman Sachs Group Inc. (NYSE: GS) was downgraded to Hold from Buy at Deutsche Bank.

Intercontinental Hotels Group PLC (NYSE: IHG) was named as the Zacks Bear of the Day stock. The firm said that you didn’t need to read what it had to say to know that the hotel industry was under pressure. Shares of last closed at $5.76, with a consensus price target of $55.00.

LGI Homes Inc. (NASDAQ: LGIH) was downgraded to Neutral from Outperform with an $86 price target at Wedbush, with the valuation downgrade coming as the shares have surpassed its $86 target price.

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Planet Fitness Inc. (NYSE: PLNT) was downgraded to Market Perform from Outperform at Raymond James

Plug Power Inc. (NASDAQ: PLUG) was started as Overweight with a $7 price target (versus a $4.17 close) at Barclays. The stock was indicated up 2% at $4.25, with a 52-week range of $1.86 to $6.05 and a $6.11 consensus price target.

PPD Inc. (NASDAQ: PPD) was started as Overweight with a $35 target at KeyBanc Capital Markets. Shares closed at $28.59 on Wednesday, in a 52-week range of $10.61 to $33.23 and with a $30.82 consensus price target.

Provention Bio Inc. (NASDAQ: PRVB) was started as Outperform with a $29 target at Oppenheimer, and RBC Capital Markets started it as Outperform with a $25 target price. The stock was down about 3.5% at $14.48 on Wednesday, and it has a 52-week trading range of $4.00 to $22.82.

Qudian Inc. (NYSE: QD) was downgraded to Sell from Neutral at Citigroup.

Replimune Group Inc. (NASDAQ: REPL) was reiterated as Buy and its target was raised to $25 from $24 (versus a $20.19 close) at H.C. Wainwright.

Sally Beauty Holdings Inc. (NYSE: SBH) was raised to Outperform from Perform with a $19 price target (versus a $15.22 close) at Oppenheimer.

SeaWorld Entertainment Inc. (NYSE: SEAS) was raised to Buy from Neutral and the price target was raised to $24 from $9 at Citigroup. Shares closed up 7.4% at $18.57 on Wednesday and had a $17.17 consensus price target.

Smartsheet Inc. (NYSE: SMAR) was reiterated as Buy and its target price was raised to $67 from $60 (versus a $59.08 close) at Needham.

Sprout Social Inc. (NASDAQ: SPR) was reiterated as Overweight and its target price was raised to $33 from $27 (versus a $31.11 close, after a 4.1% gain) at KeyBanc Capital Markets.

Sykes Enterprises Inc. (NASDAQ: SYKE) was raised to Outperform from Neutral with a $40 price target (versus a $28.58 close) at Robert W. Baird.

Tyson Foods Inc. (NYSE: TSN) was raised to Outperform from Market Perform and its target price was raised to $83 from $62 (versus a $60.10 close, after a 3.8% drop) at Bernstein.

Valvoline Inc. (NYSE: VVV) was raised to Buy from Hold at SunTrust Robinson Humphrey, which noted that the company is uniquely positioned to benefit from a surge in road trips over the next several months, as well leveraging its drive-thru quick lube business model.

Wells Fargo & Co. (NYSE: WFC) was raised to Buy from Hold at Deutsche Bank. Wells Fargo closed up 5.2% at $28.83 on Wednesday, with a $31.23 consensus price target. Its 52-week high is $54.75.

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Wednesday’s top analyst upgrades and downgrades included Apache, Apple, CME, Devon Energy, Diamondback Energy, Gilead Sciences, Hexo, MarketAxess, Microchip Technology, Zoom Video Communications and more.