The futures were all lower on Thursday, after a Wednesday trading session that saw investors keeping a close eye on the statements from Federal Reserve Chair Jay Powell. Markets are already pricing in nearly three rate hikes by the end of 2023, and as expected he somewhat talked down the dot plot, which sent the Dow Jones industrials and the S&P 500 to fresh all-time highs. With stimulus checks showing up in bank accounts, spring break upon us and the economy looking for a strong rebound, Wall Street strategists are becoming increasingly bullish on the potential for very strong economic growth this quarter and for the entire year.
Despite the strong gains, top strategists on Wall Street continue pointing to “bubble” metrics, like the massive “meme” retail stock and option trading, huge hedge fund leverage and IPOs that don’t make money as examples, so the current volatility may be here for some time.
Wall Street analysts have been examining earnings results and also looking to see what guidance for the balance of the first quarter and the rest of 2021 looks like. With major Wall Street firms still warning of the potential for impending 5% to 10% correction across the board, it makes sense for investors to continue building some cash reserves into the market strength, while repositioning portfolios for the start of the second quarter and the rest of 2021.
24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding new ideas for investors and traders alike. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. Consensus analyst target data is from Refinitiv.
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These are the top analyst upgrades, downgrades and initiations seen on Thursday, March 18, 2021.
Aeva Technologies Inc. (NYSE: AEVA) was started with an Overweight rating and a $22 price target at Piper Sandler. The stock had a recent initial public offering, so there is no consensus target yet. The shares were last seen on Wednesday at $14.05, after falling almost 7% on the day.
Agilent Technologies Inc. (NYSE: A | A Price Prediction) was upgraded to Buy from Neutral at Citigroup, which also raised the price target to $150. The posted consensus price target is $138.56. The stock closed trading on Wednesday at $122.52.
Carnival Corp. & PLC (NYSE: CCL) was upgraded to Buy from Neutral at BofA Securities, which raised the price target to $42. The consensus for the cruise line operator is much lower at $21.53, and the shares closed Wednesday at $28.93.
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Cars.com Inc. (NYSE: CARS) was named as the Zacks Bear of the Day stock. The firm said that used car prices are spiking, so that should drive traffic to this site, but margins are looking very weak. Shares last closed at $15.17 and have a consensus price target of $15.13.
Clorox Co. (NYSE: CLX) was downgraded to Neutral from Buy at D.A. Davidson, which also lowered the price target on the consumer staples giant to $189. The consensus target is $216.08, and the stock closed at $189.59 on Wednesday.
Darden Restaurants Inc. (NYSE: DRI) saw its price target raised at Goldman Sachs to $153 from $136, and the analyst kept a Buy rating on the restaurant giant. The consensus target is $136.17, and the last trade to hit the tape on Wednesday came in at $141.25.
Five Below Inc. (NASDAQ: FIVE) saw its price target raised at Telsey Advisory to $230 from $220, and the analyst kept an Outperform rating on the shares. The posted consensus target is $208.67, and the stock closed on Wednesday at $196.01.
Infiniti Pharmaceutical Inc. (NASDAQ: INFI) was started with a Buy rating and a $12 price target at Truist Securities. The consensus price objective is just $8, but the stock closed Wednesday at $3.20.
Lumentum Holdings Inc. (NASDAQ: LITE) was downgraded to Neutral from Buy at Rosenblatt, which also lowered the price target to $97. The consensus target is up at $115.50, and Wednesday’s closing share price was $88.41.
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Mogo Inc. (NASDAQ: MOGO) was named as the Bull of the Day at Zacks, which said that this fintech name looks like it is ready to break out and another name in the space had a $95 billion valuation. Shares most recently closed at $10.65 but have no consensus price target.
News Corp. (NASDAQ: NWSA) was raised from Neutral to Buy with a $32 price target at Guggenheim. The consensus target for the broadcast news heavyweight is $26.28, and the stock closed trading on Wednesday at $26.35.
Pinduoduo Inc. (NASDAQ: PDD) was downgraded to Neutral from Outperform at Macquarie, which lowered the price target to $157. The consensus target is $173.73, and Wednesday’s closing price was $149.46 per share.
QuantumScape Corp. (NYSE: QS) saw its target price raised to $54 from $48 at Goldman Sachs, which maintained a Neutral rating on the electric vehicle battery company that is backed by Volkswagen and Bill Gates, among others. The posted consensus target is $58.25, and the stock closed above both levels Wednesday at $59.88, after a gain of 5% for the day.
Revolve Group Inc. (NYSE: RVLV) was upgraded to Buy from Neutral at BofA Securities, which also raised the price target to $65. That compares with the much lower $43.75 consensus target and Wednesday’s close at $52.58.
Royal Dutch Shell PLC (NYSE: RDS-A) saw its target price raised to $48 from $43 at Cowen, which maintained an Outperform rating on the integrated oil giant. That compares with the higher consensus target of $50.92 and Wednesday’s closing print of $43.22.
Targa Resources Corp. (NYSE: TRGP) was started at Goldman Sachs with a Conviction Buy rating and a $49 price target. That compares with the lower consensus price objective of $37.60 and Wednesday’s final trade of $33.34 a share.
Translate Bio Inc. (NASDAQ: TBIO) was downgraded to Hold from Buy at Truist Securities, and the firm lowered the price target to $20. Evercore ISI downgraded it to In Line from Outperform and lowered the price target to $21 as well. The consensus target is $32. The stock closed on Wednesday at $25.70. The shares are down a stunning 27% in pre-market trading after the company said Wednesday its inhaled messenger RNA drug failed to improve lung function in cystic fibrosis patients.
Upstart Holdings Inc. (NASDAQ: UPST) was raised to Market Outperform from Market Perform with a $111 price target at JMP Securities. The consensus target is a much lower $60.79, and the closing price on Wednesday was $60.79 per share.
Westlake Chemical Partners L.P. (NASDAQ: WLKP) was downgraded to Neutral from Buy at UBS, though the firm raised the price target to $25. The consensus target is $25.50, and the stock closed trading on Wednesday at $24.72.
Williams-Sonoma Inc. (NYSE: WSM) saw its target price raised to $175 from $155 at Telsey Advisory. The company provided new targets of $10 billion in sales and an operating margin of 15% in the next five years. The consensus target for the upscale retailer is a much lower $119.12. The last trade for Wednesday came in at $136.39 a share.
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Raymond James is very positive on top energy companies, as West Texas Intermediate crude surges to near $65 a barrel. Here are six top stocks for growth investors looking to add exposure to the sector.
Seven producers of steel, copper and aluminum are likely to benefit from a $2 trillion federal investment in infrastructure.
Wednesday’s early top analyst upgrades and downgrades included Amazon.com, Charter Communications, Hershey, McDonald’s, Plug Power, Seagate Technology, Starbucks and Virgin Galactic. Analyst calls seen later in the day were on Comcast, CVS, Sherwin-Williams and more.
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