The futures were mixed on Wednesday after investors returned from the Memorial Day holiday to another roller-coaster trading day. While the Dow Jones industrials and Russell 2000 posted gains, both the S&P 500 and the Nasdaq closed lower on Tuesday. President Biden is expected to meet with Republicans to continue talks on a bipartisan infrastructure bill. Many in the progressive wing of the party are urging the president to suspend the talks and move forward on a party-line basis. The biggest data point this week still remains the May jobs report, which is due Friday before the open.
Despite the concerns across Wall Street about tapering of the quantitative easing program and the clear building inflationary pressures, the Federal Reserve is vowing to keep interest rates contained, which could one reason for the continued moves higher in the equity markets, even after sell-offs. Also note that money markets continue to see massive inflows, which is another big plus.
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 balance 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 Wednesday, June 2, 2021.
Alphabet Inc. (NASDAQ: GOOGL | GOOGL Price Prediction): KGI Securities started the technology giant with an Outperform rating. The stock has traded in a 52-week range of $1351.65 to $2431.38 and has a consensus price target of $2739.05. The last Tuesday trade hit the tape was at $2381.18 a share.
Altimmune Inc. (NASDAQ: ALT) H.C. Wainwright started coverage on the stock with a Buy rating and a $35 price target. The consensus price objective is higher at $41.83, and the shares closed on Tuesday at $12.46. The stock was up almost 6% in Wednesday’s premarket.
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Canopy Growth Corp. (NYSE: CGC): Canaccord Genuity raised the marijuana stock to Neutral from Sell. The shares have traded in a wide 52-week range of $13.83 to $56.50. No consensus price target was available. The stock ended trading on Tuesday at $24.28, after pulling back almost 7% for the day.
Cinemark Holdings Inc. (NYSE: CNK): Goldman Sachs downgraded it to Sell from Neutral and lowered the price target to $19 from $21. The consensus target is $24.82. The stock closed Tuesday at $24.41, which was up almost 8% on the day.
Coca-Cola Europacific Partners PLC (NYSE: CCEP): JPMorgan upgraded the stock to Overweight from Neutral and raised the price target to $70. A consensus price objective was unavailable. The shares closed Tuesday at $60.66.
Cutera Inc. (NASDAQ: CUTR): Cantor Fitzgerald started coverage with an Overweight rating and a $55 price target. That compares with the $39 consensus target and Tuesday’s closing trade of $40.86, which was up almost 7% for the day.
Dick’s Sporting Goods Inc. (NYSE: DKS): Zacks named this retailer as its Bull of the Day stock. The analyst said that it is going from a “stay at home” trade to a “reopening” trade and gaining momentum along the way. The stock most recently closed at $97.40 and has a consensus price target of $109.83.
DXC Technology Co. (NYSE: DXC): Wells Fargo’s upgrade to Overweight from Equal Weight included a price target hike to $48. The consensus price objective is $38.23. The stock ended Tuesday’s trading at $38.11.
Facebook Inc. (NASDAQ: FB): KGI Securities started the social media giant with an Outperform rating and a $420 price target. The lower $386.36 consensus is still well above Tuesday’s final trade at $329.13 per share.
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Genius Sports Ltd. (NYSE: GENI): Goldman Sachs started coverage with a Buy rating and a $31 price target. No consensus target was available as the company had a recent initial public offering. The shares closed Tuesday at $23.08, which was down almost 5% for the day.
GSX Techedu Inc. (NYSE: GOTU): The Goldman Sachs downgrade to Neutral from Buy included the price target lowered to $20. That compares with a huge $61.09 consensus target and a closing print on Tuesday of $18.08 per share.
Honest Co. Inc. (NASDAQ: HNST): BofA Securities started the Jessica Alba-backed, recently public company with a Buy rating and a $17 price target. There is no consensus target due to the recent IPO, and the shares rose almost 7% on Tuesday to close at $16.88 a share.
IMAX Corp. (NASDAQ: IMAX): Goldman Sachs downgraded the stock to Sell from Neutral and lowered the price target to $18.60. The consensus target is up at $25.70. The final trade for Tuesday was reported at $22.27.
iRhythm Technologies Inc. (NASDAQ: IRTC): Citigroup downgraded it to Neutral from Buy and lowered the price target to $78. The consensus price objective is much higher at $98.50. The final trade on Tuesday was reported at $76.25. The shares were down a sharp 16% in the premarket after the company’s president and CEO stepped down due to personal matters.
Microsoft Corp. (NASDAQ: MSFT): KGS Securities initiated coverage on the legacy software leader with an Outperform rating and a $300 price target. The consensus price objective is $293.16. The stock closed on Tuesday at $247.40.
Nomura Holdings Inc. (NYSE: NMR): This Japanese financial company was named as the Zacks Bear of the Day. The analyst said that steep losses and a dividend in jeopardy make this a bank stock to avoid. Shares last closed at $5.49, and the consensus price target is $6.11.
Pan American Silver Corp. (NYSE: PAAS): RBC Capital Markets started coverage with a Neutral rating and a $36 price target. The consensus target is higher at $42.76. The shares closed on Tuesday at $33.73.
PDF Solutions Inc. (NASDAQ: PDFS): Rosenblatt initiated coverage with a Buy rating and a $22 price target. The consensus target is $28, and the stock closed on Tuesday at $17.35.
Salesforce.com Inc. (NYSE: CRM): KGS Securities started the stock with a Neutral rating and a $280 price target. The consensus target for shares of the customer relationship management software leader is $277.93. The stock ended Tuesday trading at $236.20 a share.
SBA Communications Corp. (NYSE: SBAC): Morgan Stanley’s upgrade to Overweight from Equal Weight included a price target hike to $337 from $321. The consensus price objective is $336.61, and Tuesday’s final trade came in at $302.27 per share.
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These five red-hot energy companies not only deliver dependable big dividends, but their stocks have the potential to shoot higher as oil nears the $70 a barrel level. They are solid ideas for investors looking to have a position in the sector while generating consistent income.
Tuesday’s top analyst upgrades and downgrades included Boeing, Devon Energy, F5 Networks, Illumina, Intuitive Surgical, Nio and Williams-Sonoma.
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