The futures traded up Thursday after a massive risk-off rally on Wednesday in which all the major indexes closed higher. The Nasdaq led the way with a stunning 2.9% gain. The reason for the huge moves was the consumer price index reading for July that came in below expectations at 8.5% year-over-year. While this strengthens the “peak inflation” narrative, much of the drop was due to the decline in energy prices.
The gasoline index dropped 7.7% in July, which was the largest month-over-month decline in this component since April 2020. Note that energy prices overall fell 4.6% over the past month, but they can turn on a dime at any time. There will be another inflation report next month before the Federal Reserve governors meet in late September.
The hope of perhaps a lower 50-basis-point increase next month in lieu of the anticipated 75-basis-point or even a 1% increase, had buyers rushing back into the Treasury market, where yields were down across the curve, with the exception of the 30-year long bond, which closed at a 3.04% handle.
Brent and West Texas Intermediate crude both traded higher Wednesday, with WTI closing well over $91 a barrel. The Energy Information Administration reported a large build in crude stocks but also cited a very large draw in gasoline inventories. Natural gas was 5% higher, closing at $8.23, while gold closed down modestly and Bitcoin closed over 3% higher on the day, just shy of $24,000.
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.
These are the top analyst upgrades, downgrades and initiations seen on Thursday, August 11, 2022.
Akamai Technologies Inc. (NASDAQ: AKAM): Baird kept a Neutral rating and lowered its $102 price target to $95. The consensus target is higher at $117.86. The final trade on Wednesday was reported at $95.99.
Allbirds Inc. (NASDAQ: BIRD): Morgan Stanley downgraded the stock to Equal Weight from Overweight and cut the $12 price target to $5. The consensus target is $7.75. Wednesday’s close was at $4.68.
Altice USA Inc. (NYSE: ATUS): HSBC downgraded the shares from Buy to Hold with an $11 target price. The consensus target is $15.39. Wednesday’s close was at $10.95.
Array Technologies Inc. (NASDAQ: ARRY): Goldman Sachs raised its $18 price target on the Buy-rated stock to $25. The consensus target is $17.92. The stock closed almost 29% higher on Wednesday at $23.58 after topping second-quarter earnings and revenue estimates.
Blue Apron Holdings Inc. (NYSE: APRN): Lake Street started coverage with a Buy rating and a $9 target price. The consensus target is $9.33. Wednesday’s close at $3.71 was up almost 21% after investor RJB Partners increased its stake in the company.
Cadence Design Systems Inc. (NASDAQ: CDNS): Citing a beat-and-raise quarter and an acquisition, Zacks selected this software maker as the Bull of the Day stock. The shares last closed at $186.34, and the $194.35 consensus target would be a 52-week high.
CF Industries Holdings Inc. (NYSE: CF): Barclays upgraded the shares to Overweight from Equal Weight and raised the $103 price objective to $120. The consensus target is $109.30. The shares closed on Wednesday at $102.31.
Coinbase Global Inc. (NASDAQ: COIN): Despite keeping a Sell rating on the stock, Goldman Sachs boosted the $45 target price to $51. The consensus target is up at $108.23. The shares ended trading Wednesday at $94.14, which was up over 7% on the day.
Emerson Electric Co. (NYSE: EMR): Baird maintained a Neutral rating but raised the $86 target price to $100. That compares with a $101.23 consensus target and Wednesday’s close at $87.54.
Energizer Holdings Inc. (NYSE: ENR): Morgan Stanley cut shares of the battery giant to Equal Weight from Overweight and has a $35 target price. That compares with the $38.89 consensus targert and Wednesday’s close at $31.
Equitrans Midstream Corp. (NASDAQ: ETRN): Wells Fargo upgraded the shares from Equal Weight to Overweight with a $13 target. The consensus target is $9.00. The stock closed almost 8% higher on Wednesday at $9.46 on no news we can find except the upgrade.
Frontier Group Holdings Inc. (NASDAQ: ULCC): Barclays resumed coverage on the carrier with an Overweight rating after its failed bid to buy Spirit Airlines. Its $19 target price compares with the $16.83 consensus target and Wednesday’s last trade at $14.22 a share.
Hyatt Hotels Corp. (NYSE: H): Baird reiterated a Neutral rating on the lodging giant and has a $94 target price. The consensus target is $100.63. The stock ended Wednesday’s session at $88.09.
Lemonade Inc. (NYSE: LMND): Oppenheimer maintained an Outperform rating with a $35 target price. The consensus target is $29.81. The last trade on Wednesday was filled at $28.66.
Micron Technology Inc. (NASDAQ: MU): Baird reiterated a Neutral rating on the chip giant and cut the $60 price target to $45. The $77.67 consensus target is well above Wednesday close at $61.40, which was up close to 4% for the day.
NerdWallet Inc. (NASDAQ: NRDS): Oppenheimer maintained an Outperform rating with a $15 target. The consensus target is $17.43. The last trade for Wednesday was reported at $9.96.
Planet Fitness Inc. (NYSE: PLNT): Baird reiterated an Outperform rating with a $92 target. The consensus target is $94.07. The stock closed on Wednesday at $77.11.
Repay Holdings Corp. (NASDAQ: RPAY): Citigroup downgraded the shares to Neutral from Buy and dropped the $19 target price to $13. The consensus target is $19.30 for now. The stock closed Wednesday at $10.25, which was down over 20% on the day as second-quarter earnings and revenues came in below estimates.
Shopify Inc. (NYSE: SHOP): Atlantic Equities upgraded the shares to Overweight from Neutral and has a $46 target price. The consensus target is $76.93. The stock closed up over 10% on Wednesday at $40.61. Shares added on almost 4% in premarket action.
Take-Two Interactive Software Inc. (NASDAQ: TTWO): DZ Bank downgraded the video game giant to Hold from Buy and has a $135 target price. The consensus target is $166 for now. The last trade for Wednesday came in at $123.79, up almost 3% for the day, following Tuesday’s selling after the company missed earnings estimates as consumer spending slows.
Trade Desk Inc. (NASDAQ: TTD): Jefferies reiterated a Buy rating, and its $80 target price is higher than the $72.32 consensus target. The tech stock was named as the Zacks Bear of the Day due to its flatlining earnings. Wednesday’s close at $74.24 was up 36% for the day after revenues soared.
Unity Software Inc. (NYSE: U): Oppenheimer reiterated an Outperform rating and lifted its $54 target price to $60. The consensus target is $60.08. The company is trying to Buy AppLovin, and shares closed Wednesday at $55.57, up over 10% on the proposed $17 billion purchase.
V2X Inc. (NYSE: VVX): Stifel raised its Hold rating to Buy and nudged the $42 target up to $45. The consensus target is $53.50. The stock was last seen Wednesday at $39.71, up a massive 33% on the day after posting huge second-quarter results.
Walt Disney Co. (NYSE: DIS): Guggenheim upgraded the entertainment giant to Buy from Neutral and raised the $110 price objective to $145. The shares closed Wednesday at $112.43, up 4% for the day. The stock was trading almost 9% higher in the premarket after posting stellar results.
For income investors: Seven quality stocks can survive in a turbulent market, and they pay big and dependable dividends. Not only do the companies provide goods and services needed regardless of prevailing economic conditions, they also are strong players in their respective sectors.
Is now the time to place a bet on casino stocks? And Barclays sees two winners and two losers after earnings.
ALSO READ: That ’70s Stagflation Show Is Coming: 7 ‘Strong Buy’ Dividend Stocks to Weather the Storm
Wednesday’s early top analyst upgrades and downgrades included Amgen, Bed Bath & Beyond, Carlyle, Coinbase Global, Enovix, GoodRx, Healthcare Realty Trust, Micron Technology, NRG Energy, Nutrien, Nvidia, Roku, Take-Two Interactive Software and Tellurian. Analyst calls seen later in the day were on Okta, RealReal, Twilio, Vertex Energy and more.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
