The futures sank after the consumer price index (CPI) numbers came in much hotter than anticipated, with year-over-year and core numbers above estimates. Most across Wall Street are now expecting another almost guaranteed 75-basis-point hike when the Federal Reserve governors meet next week.
All the major indexes closed higher on Monday, as the risk-on rally from last week (which ended a three-week losing streak) carried over to start the new trading week. Bullish analysts cited the oversold conditions and recent buying from short-sellers, hedge funds and quantitative accounts as reasons for the recent move higher.
Interest rates were surprisingly down across the Treasury curve Monday, as buyers emerged in front of the latest CPI data. Some across Wall Street are concerned that the Treasury market may become increasingly congested at the Federal Reserve after the quantitative tightening (QT) this month. In September, the pace of QT roughly doubled, with the caps doubling to $60 billion per month for Treasury securities and to $35 billion for mortgage-backed securities.
Brent and West Texas Intermediate crude both traded higher on Monday, following through on gains posted Friday. Despite recession concerns, the move higher comes after the analysts at J.P. Morgan noted that it is possible that OPEC could cut production by as much as a million barrels to help support prices. Natural gas closed back over the $8 mark on Monday, which was up almost 3%. Gold and Bitcoin both closed higher as well.
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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.
These are the top analyst upgrades, downgrades and initiations seen on Tuesday, September 13, 2022.
Adobe Inc. (NASDAQ: ADBE | ADBE Price Prediction): BMO Capital Markets downgraded the technology leader to Market Perform from Outperform while raising its $420 target price to $435. The consensus target is $458.93. The stock closed on Monday at $396.36.
Agnico Eagle Mines Ltd. (NYSE: AEM): Goldman Sachs initiated coverage on the gold mining heavyweight with a Buy rating and a $55 price target. The consensus is higher at $85.36. The last trade on Monday came in at $44.83.
Alphatec Holdings Inc. (NASDAQ: ATEC): Morgan Stanley started coverage with an Overweight rating and a $13 target. The consensus target is $16.33. The stock closed over 10% higher on Monday at $9.19, likely on the upgrade.
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Amgen Inc. (NASDAQ: AMGN): Baird kept an Underperform rating on the biotech giant and has a $185 target. The consensus target is up at $253.12. The shares closed Monday at $237.62, down 4% for the day despite positive news for the company’s lung cancer pill.
Argo Group International Holdings Ltd. (NYSE: ARGO): Though Compass Point upgraded the stock to Buy from Neutral, it also slashed its $45.50 price target to $28.50. The consensus target is $40. The shares closed on Monday at $23.55.
Ashland Inc. (NYSE: ASH): Credit Suisse initiated coverage with an Outperform rating and a $120 target price. The consensus target is $124.40. Monday’s close was at $104.58.
Barrick Gold Corp. (NYSE: GOLD): Goldman Sachs started coverage with a Neutral rating and an $18 target. The consensus target is up at $28.41. The stock closed on Monday at $15.96.
Bausch + Lomb Corp. (NYSE: BLCO): H.C. Wainwright started coverage on the optical products giant with a Buy rating and a $21 pierce target. The last trade for Monday was reported at $17.
Biogen Inc. (NASDAQ: BIIB): Stifel maintained a Neutral rating on the biotech heavyweight while lowering its $230 target price to $223. The consensus target is $234.59. The stock closed on Monday at $212.88.
Carpenter Technology Corp. (NYSE: CRS): Cowen upgraded the stock to Outperform from Market Perform and has a $45 price target. The consensus target is $47.60. The last trade on Monday was reported at $39.05, up almost 9% on the day, likely on the upgrade.
Comstock Resources Inc. (NYSE: CRK): Stifel raised its $22 target price to $27 and added the Buy-rated stock to the firm’s Select List of top picks. The consensus target is $20.32. The stock closed over 6% higher on Monday at $19.94 on a strong day for energy stocks.
Dave & Buster’s Entertainment Inc. (NASDAQ: PLAY): Zacks named this stock as its Bear of the Day. The analyst suggests that investors are not playing games after a big earnings miss. The stock has traded as high as $52.53 in the past year but closed most recently at $38.93.
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Enphase Energy Inc. (NASDAQ: ENPH): Goldman Sachs raised its $290 price target on the Buy-rated shares to $328. The consensus target is $278.99. The stock closed on Monday at $308.93.
Huntsman Inc. (NYSE: HUN): Credit Suisse started coverage with an Outperform rating and a $33 target price. The consensus target is $38.56. The last trade Monday was reported at $28.05.
JD.com Inc. (NYSE: JD): Zacks has selected this Chinese internet play as its Bull of the Day, citing relative strength on the back of solid earnings. Shares last closed at $61.79, and reaching the consensus price target of $84.96 would be a gain of more than 37%.
Kinder Morgan Inc. (NYSE: KMI): Goldman Sachs lifted its $17 target price on the Neutral-rated MLP giant to $19. The consensus target is $20.49. The shares closed on Monday at $18.74.
Lucid Group Inc. (NASDAQ: LCID): R.F. Lafferty initiated coverage with a Buy rating and a $19 target. The consensus target is $26.58. The electric vehicle maker’s stock closed Monday at $16.55, which was up almost 10% for the day, perhaps on the upgrade.
Monday.com Ltd. (NASDAQ: MNDY): Loop Capital initiated coverage with a Buy rating and a $175 price objective. That compares with the $188 consensus target and Monday’s closing print of $140.36, which was up almost 8% on the day, perhaps on the initiation.
Newmont Corp. (NYSE: NEM): Goldman Sachs initiated coverage with a Buy rating and a $53 target price. That compares with the curiously high $115.03 consensus target. The shares closed Monday at $43.95.
Okta Inc. (NASDAQ: OKTA): Oppenheimer maintained an Outperform rating with a $115 target. The consensus target is $112.67. The last trade for Monday hit the tape at just $64.80.
PTC Therapeutics Inc. (NASDAQ: PTCT): Jefferies started coverage with a Buy rating and a $62 target price. The consensus target is $54.64. The stock closed at $53.07 on Monday.
Starbucks Corp. (NASDAQ: SBUX): Baird maintained a Neutral rating with an $86 target on the ubiquitous coffee retailer in front of next week’s investors meeting. The consensus target is $93.40. The last trade on Monday was reported at $89.07.
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Telos Corp. (NASDAQ: TLS): Wedbush raised its Neutral rating to Outperform with a $15 target price. The consensus target is $42.71 for now. The stock closed Monday at $11.55, which was a 6% gain on the day.
Union Pacific Corp. (NYSE: UNP): BofA Securities upgraded the railroad giant to Buy from Neutral and has a $260 price objective. The consensus target is $241.50. The shares were last seen on Monday trading at $234.19.
Vale S.A. (NYSE: VALE): The RBC Capital Markets upgraded was to Outperform from Sector Perform, and the firm bumped its target price to $16 from $15. The consensus target is $18.06. The stock closed on Monday at $13.78.
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Given record inflation and rising interest rates, buying stocks that will pay dependable dividends until the economic mess is sorted out makes total sense now. Seven surprising stocks can withstand inflation, come with fat dividends and are rated Buy by top Wall Street firms.
Monday’s early top analyst upgrades and downgrades included Adobe, Carvana, Goldman Sachs, Hudson Pacific Properties, Moderna, Take-Two Interactive Software and T-Mobile. Analyst calls seen later in the day were on APA, Barrick Gold, Canadian National Railway, Canadian Pacific Railway, Livent, Newmont, Occidental Petroleum, Roblox and more.
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