The Fed's Inflation Balancing Act; Analyst Upgrades and Downgrades on McDonald's, Mondelez, Skyworks and More

Investing

Published: April 12, 2022 12:37 pm

Markets started out the week on a terrible note as concerns of an economic slowdown mounted. Coupled with the lockdowns in China and war in Ukraine, it was a very bleak picture. While there has been a bounce on Tuesday, these concerns are still abundant.

The consumer price index was released Tuesday morning, and the inflation picture was mixed, to say the least. At 8.5% year over year, CPI was at its highest level since 1981. However, month over month, inflation increased 1.2% on a seasonally adjusted basis for March, suggesting that inflation may have peaked.

This also comes as the Federal Reserve is preparing to raise interest rates to combat inflation. How this balancing act will play out is yet to be seen, but what we know now is that rate hikes of 50 basis points are on the table. Considering the Fed’s upcoming move and the tumultuous nature of markets recently, it makes for a real stock-pickers’ market.

24/7 Wall St. is reviewing additional analyst calls seen on Tuesday. 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 Cisco, CrowdStrike, Ferrari, Starbucks, Waste Management and many more.

Bloomin’ Brands Inc. (NASDAQ: BLMN): Citigroup initiated coverage with a Neutral rating and a $24 price target. The 52-week trading range is $17.29 to $32.81, and shares were trading near $21 apiece on Tuesday.

Chipotle Mexican Grill Inc. (NYSE: CMG): Citigroup started coverage with a Buy rating and a $1,900 price target. The stock traded near $1,565 on Tuesday. The 52-week trading range is $1,277.41 to $1,958.55.

McDonald’s Corp. (NYSE: MCD): Citigroup resumed coverage with a Neutral rating, and it raised the price target to $270 from $260. Shares were trading near $252 on Tuesday. The 52-week range is $217.68 to $271.15.

Mondelez International Inc. (NASDAQ: MDLZ): Credit Suisse resumed coverage with an Outperform rating and a $70 price target. The stock traded near $64 on Tuesday. The 52-week trading range is $57.63 to $69.47.

Restaurant Brands International Inc. (NYSE: QSR): Citigroup downgraded the stock to Neutral from Buy and cut the $71 price target to $64. The stock traded near $60 on Tuesday. The 52-week trading range is $53.47 to $71.12.

Repare Therapeutics Inc. (NASDAQ: RPTX): Stifel’s downgrade was from Buy to Hold with an $11 price target. Shares were trading near $11. The 52-week range is $9.59 to $35.75.

Skyworks Solutions Inc. (NASDAQ: SWKS): B. Riley Securities downgraded the shares to Neutral from Buy and cut the $175 price target to $138. The stock traded near $123 on Tuesday. The 52-week trading range is $118.99 to $204.00.

ALSO READ: Earnings Previews: Citigroup, Goldman Sachs, Morgan Stanley, Wells Fargo

Utz Brands Inc. (NYSE: UTZ): Credit Suisse’s downgrade to Neutral from Outperform included a price target cut from $20 to $16.50. Shares were trading near $14 on Tuesday. The 52-week range is $13.50 to $30.09.

Yum! Brands Inc. (NYSE: YUM): Citigroup started coverage with a Buy rating and a $156 price target. The stock traded near $120 on Tuesday. The 52-week trading range is $111.63 to $139.85.

Cash Back Credit Cards Have Never Been This Good

Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.