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New Era of the Activist Investor, and More Analyst Upgrades and Downgrades: AbbVie, Bristol-Myers, JetBlue and More
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Markets fell again on Wednesday with the Nasdaq leading the charge down over 1.5%. This came in contrast to the 10-year US Treasury yield hitting its highest level since early 2019. Considering this recent drop, Morgan Stanley and JPMorgan have taken bearish stances on where markets might go from here. However, there is one big bull that is buying in right now.
The new era of activist investors has come, whether it be for politics or some change to the social dynamic, Elon Musk has come with authority and cash. Musk, CEO of Tesla Inc. (NASDAQ: TSLA), bought big into Twitter Inc. (NYSE: TWTR) and his 9.2% stake makes a statement.
Musk, who currently concerns himself with the fate of humanity, was previously devoted to making humanity an interplanetary species. It has to come back down to Earth. As of recent, the SEC released filings that he is now into different endeavors. The acquisition of nearly a 10% stake in Twitter could be seen by some as his move to better humanity by other means, but he still has to deal with the market.
According to filings, and tweets, Musk is now the largest single shareholder in Twitter. There’s little to be disputed over that. However, intentions and motivations—ultimately effects—for this activism are yet to be seen. But there’s more questions that arise from this in a broader sense.
Musk, as a dynamo for electric vehicles, taking a stake in a company that has been suspect for its monetization since IPO, is not uncommon. His penchant for turning a profit over time is regarded across markets. At the same time, it could influence other tech billionaires to make similar moves in industries that they have staked out interest in. Maybe analysts have the answer.
24/7 Wall St. is reviewing additional analyst calls seen on Wednesday. We have included the latest call on each stock, as well as a recent trading history and the consensus targets among analysts. Note that analyst calls seen earlier in the day were on Block, Boeing, GoodRX, Hasbro, PayPal, Starbucks and many more.
AbbVie Inc. (NYSE: ABBV): Morgan Stanley resumed coverage with an Overweight rating and a $192 price target. The 52-week trading range is $104.17 to $168.78, and shares were trading near $168 apiece on Wednesday.
Array Technologies, Inc. (NASDAQ: ARRY): Guggenheim upgraded to a Buy rating from Neutral with an $18 price target. The stock traded near $11 on Wednesday. The 52-week trading range is $8.02 to $31.00.
Avis Budget Group, Inc. (NASDAQ: CAR): BofA Securities downgraded to an Underperform rating from Neutral. Shares were trading near $248 on Wednesday. The 52-week range is $65.87 to $545.11.
Bristol-Myers Squibb Co. (NYSE: BMY): Morgan Stanley resumed coverage with an Underweight rating and a $64 price target. The stock traded near $75 on Wednesday. The 52-week trading range is $53.22 to $75.32.
CarMax, Inc. (NYSE: KMX): BofA Securities downgraded to a Neutral rating from Buy and cut the price target to $165 from $195. The stock traded near $98 on Wednesday. The 52-week trading range is $95.04 to $155.98.
Invitation Homes Inc. (NYSE: INVH): Evercore ISI upgraded to an Outperform rating from In Line and raised the price target to $46 from $44. Shares were trading near $40. The 52-week range is $32.17 to $45.80.
Jazz Pharmaceuticals PLC (NASDAQ: JAZZ): Goldman Sachs downgraded to a Neutral rating from Buy and cut the price target to $196 from $202. Shares were trading near $162 on Wednesday. The 52-week range is $117.64 to $189.00.
JetBlue Airways Corp. (NASDAQ: JBLU): Raymond James downgraded to a Market Perform rating from Outperform. The 52-week trading range is $11.37 to $21.60, and shares were trading near $12 apiece on Wednesday.
Spirit Airlines Inc. (NYSE: SAVE): Evercore ISI downgraded to an In-Line rating from Outperform. The stock traded near $26 on Wednesday. The 52-week trading range is $18.26 to $39.19.
W.W. Grainger, Inc. (NYSE: GWW): Wolfe Research upgraded to an Outperform rating from Peer Perfrom. Shares were trading near $525 on Wednesday. The 52-week range is $391.16 to $527.06.
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