The futures traded lower Tuesday, after Monday’s rocky start to the week when all the major indexes and the transportation sector closed lower. Wall Street pundits cited the new COVID-19 variant showing up in China as an issue. While another lockdown there is a concern, other issues abound. Tomorrow’s consumer price index report looms large, with expectations for another massive print, this time 8.8%. Toss in some real concern over second-quarter earnings across Wall Street, and the possibility for disappointing guidance, and all the ingredients were there to start the week off bad and keep this risk-off crowd in control.
The Treasury market saw the buyers return after a bad week prior, as yields were lower across the curve. We also saw the two-year and 10-year inversion remain in place, as the short two-year note closed at a 3.04% yield and the 10-year at a 3.00% yield. The inversion is often seen as a precursor to a recession, which many think already may have begun.
Both Brent and West Texas Intermediate crude closed essentially even, while natural gas was up a stunning 6.5%, as worries over deliveries from Russia to Europe circulated. Gold was flat again, while Bitcoin closed down over 3%, trading back toward the $20,000 level.
24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding fresh 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 Tuesday, July 12, 2022.
Airbnb Inc. (NASDAQ: ABNB | ABNB Price Prediction): Jefferies reiterated a Buy rating with a $160 target price. The consensus target is higher at $176.19. The stock closed Monday at $95.10.
American Express Co. (NYSE: AXP): Morgan Stanley downgraded the financial giant to Equal Weight from Overweight and slashed the $223 target price to $143. The consensus target is $186.16. The stock was last seen Monday at $140.58, and shares were down close to 3% in premarket trading.
API Group Corp. (NYSE: APG): BofA Securities raised its Neutral rating to Buy with a $23 target. The consensus target is $25.38. The final trade for Monday was reported at $15.17.
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Axos Financial Inc. (NYSE: AX): Keefe Bruyette upgraded the stock to Outperform from Neutral and lifted the $42 price target to $56. The consensus target is $52.63. The stock was last seen on Monday trading at $36.28.
Becton Dickinson and Co. (NYSE: BDX): Citigroup’s downgrade to Sell from Neutral included a price target cut to $235 from $265. The consensus target is $277.73. Monday’s close was at $243.70.
BlackRock Inc. (NYSE: BLK): Jefferies lowered its $873 price target on the Buy-rated money management giant to $714. The consensus target is $751.90. The stock closed almost 3% lower on Monday at $604.52.
Comerica Inc. (NYSE: CMA): Zacks named this Texas bank as its Bull of the Day, with the analyst making the case that the stock is on sale. The shares last closed at $74.22, and hitting the consensus target price of $94.43 would be a gain of more than 27%.
Fastly Inc. (NASDAQ: FSLY): Morgan Stanley downgraded the stock to Underweight from Equal Weight and reduced the $18 price target to $12. The consensus target is $17.83 for now. The shares closed on Monday at $11.61, down 14% on the downgrade.
Flowserve Corp. (NYSE: FLS): BofA Securities raised its Underperform rating to Neutral with a $31 price target. The consensus target is $36.08. The stock closed on Monday at $28.40.
Hasbro Inc. (NASDAQ: HAS): Stifel lowered the $110 price target on the Buy-rated toymaker to $103. The consensus target is $110.27. The stock closed at $82.51 on Monday.
Hyatt Hotels Corp. (NYSE: H): Evercore ISI resumed coverage of the hotel heavyweight with an In line rating while trimming the $110 price target to $100. The consensus target is $101.69. The shares ended the session on Monday at $74.16.
Insulet Corp. (NASDAQ: PODD): Citigroup downgraded the shares to Neutral from Buy and chopped the $310 target price to $250. The consensus target is $273.62. Monday’s closing trade hit the tape at $230.82.
JPMorgan Chase & Co. (NYSE: JPM): Citigroup upgraded the bank and brokerage giant to Buy from Neutral, yet it trimmed the price objective to $135 from $145. The consensus target is $148.19. The shares closed on Monday at $112.86.
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Lear Corp. (NYSE: LEA): Exane BNP Paribas upgraded the stock to Neutral from Underperform and boosted the $117 price target to $140. The consensus target is $160. Monday’s close was at $125.42.
Mattel Inc. (NASDAQ: MAT): Goldman Sachs upgraded the venerable toy and game stock to Buy from Neutral, and it bumped the $30 price target to $31. The consensus target is $32.18. Shares closed on Monday at $22.54.
Nike Inc. (NYSE: NKE): China’s COVID-19 restrictions are hitting this stock hard, says Zacks about its Bear of the Day. Shares have traded as high as $179.10 apiece in the past year but closed most recently at $105.11. That is down about 37% year to date.
Realty Income Corp. (NYSE: O): Stifel maintained a Buy rating on the real estate investment trust, citing the potential for net-lease consolidation in the industry. The analysts have a $77 target price, which compares with the $75 consensus target and Monday’s final print of $69.56.
Redfin Corp. (NASDAQ: RDFN): When Wedbush downgraded the stock, it slashed the $14 price target to $9. The consensus target is $13.89 for now. The stock closed Monday at $8.48, which was down almost 11% after the company said housing market deals are falling through at the fastest pace in two years.
Southwestern Energy Co. (NYSE: SWN): Wells Fargo raised the shares to Equal Weight from Underweight, and it lifted its $10 price target to $12. The consensus target is $10.88. The final trade on Monday was reported at $6.03.
Stryker Corp. (NYSE: SYK): BofA Securities downgraded the medical devices and products giant from Buy to Neutral with a $215 target price. The consensus target is higher at $279.65. The last trade on Monday was for $197.43 a share.
Taylor Morrison Homes Corp. (NYSE: TMHC): Credit Suisse upgraded the stock to Outperform from Neutral and has a $33 target price. The consensus target is $34.25, and Monday’s closing trade was at $25.81.
T. Rowe Price Group Inc. (NASDAQ: TROW): UBS downgraded the money management and mutual fund heavyweight to Sell from Neutral and scalped the $138 price target to $88. The consensus target is $126.11. The stock closed at $113.10 on Monday.
Zillow Group Inc. (NASDAQ: ZG): Wedbush upgraded the stock to Outperform from Neutral, and the price target rose to $41 from $37. The consensus target is $45.90. The stock closed almost 5% lower Monday at $33.56.
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Monday’s top analyst upgrades and downgrades included Affirm, American Airlines, BP, Colgate-Palmolive, Costco Wholesale, Diebold Nixdorf, Healthpeak Properties, Howmet Aerospace, Huntington Bancshares, Occidental Petroleum, PayPal, Range Resources, Six Flags Entertainment, Toast and Vertex Energy. Analyst calls seen later in the day were on Bank of America, Hilton, Honeywell, KB Home, Marriott, Meta Platforms, Southwestern Energy, Twitter, Under Armour and more.
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