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Wednesday's Top Analyst Upgrades and Downgrades: Amgen, AppLovin, Dell, Dow, Marvell Technology, PayPal, RingCentral, Shopify, SoFi, Western Digital and More
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The futures were lower after a brutal risk-off day for investors that saw all the major indexes down big. The Nasdaq was torched the most, down a stunning 5.16%. This all came after the inflation numbers for August came out much higher than expected, despite falling gasoline prices. This huge and unexpected data dump assures that the Federal Reserve will raise the federal funds rate another 75 basis points next week at its September meeting. It also signals that any Fed pivot toward softening their war against inflation is way off in the 2023 distance.
Interest rates soared across the Treasury curve, with shorter maturities getting pounded the most on Tuesday. The yield on the five-year note spiked 13 basis points as the security hit a 52-week high. The two-year and 10-year inversion stayed in place, while widening, with the former up 17 basis points to close at 3.75% (the highest level in 15 years), while the last print for the latter was 3.42%. Bond mavens see the inversion as a recession warning sign.
Brent and West Texas Intermediate crude were both modestly lower on the day. Energy has sold off over the past 90 days on global recession worries. So much appears to have been discounted, as the benchmark pricings barely moved on the massive inflation blowout. Natural gas continued its move higher, closing near $8.30. Gold traded lower, while Bitcoin was down almost 10% on the extreme stock market weakness.
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 Wednesday, September 14, 2022.
Amgen Inc. (NASDAQ: AMGN): Oppenheimer reiterated an Outperform rating on the legacy biotech giant and has a $290 price target. The consensus target is $253.12. The stock closed almost 5% lower on Tuesday at $226.86.
AnaptysBio Inc. (NASDAQ: ANAB): Truist Financial downgraded the stock to Hold from Buy and chopped the $50 price target to $28. The consensus target is $32.43. The shares closed down over 8% on Tuesday at $23.64.
AppLovin Corp. (NYSE: APP): Oppenheimer maintained an Outperform rating with a $45 target. The consensus target is up at $56.93. The shares closed Tuesday at $26.68, down close to 7% for the day.
24/7 Wall St.Berkshire Hills Bancorp Inc. (NYSE: BHLB): Hovde initiated coverage with an Outperform rating and a $33 target price. The consensus target is $29.20. The stock closed on Tuesday at $28.22.
Blue Owl Capital Inc. (NYSE: OWL): Deutsche Bank started coverage with a Buy rating and a $19 target price. The consensus target is $15.13. The stock was last seen on Tuesday trading at $11.05.
CNO Financial Group Inc. (NYSE: CNO): RBC Capital Markets initiated coverage with an Outperform rating and a $25 target price. The consensus target is $21.20. The stock closed on Tuesday at $18.76.
Dell Technologies Inc. (NYSE: DELL): Goldman Sachs reiterated a Neutral rating with a $43 target price. The consensus target is higher at $54.99. The shares closed on Tuesday at $38.30, down almost 5% on the day.
Dow Inc. (NYSE: DOW): Jefferies downgraded the industrial giant to Hold from Buy and slashed the $71 price target to $45. The consensus target is $58.43. The shares closed down over 6% on Tuesday at $47.87.
EPAM Systems Inc. (NYSE: EPAM): KeyBanc Capital Markets started coverage with an Overweight rating and a $510 target. The consensus target is $490.08. Tuesday’s close was at $421.40.
ESAB Corp. (NYSE: ESAB): Baird initiated coverage with an Outperform rating and a $53 price objective. The consensus target is $51.67. The stock closed on Tuesday at $39.77.
Globant S.A. (NYSE: GLOB): KeyBanc Capital Markets initiated coverage with an Overweight rating and a $291 target price. The consensus target is $281.70. The stock closed on Tuesday at $223.90.
Health Catalyst Inc. (NASDAQ: HCAT): Piper Sandler lowered its Overweight rating to Neutral and cut the $21 target price to $11. The consensus target is $18.64. The stock closed almost 7% lower on Tuesday at $10.72.
Informatica Inc. (NYSE: INFA): FBN Securities started coverage with an Outperform rating and a $35 target price. The consensus target is $26. The stock closed on Tuesday at $21.50.
LSB Industries Inc. (NYSE: LXU): Piper Sandler started coverage with an Overweight rating and a $26 price target. The consensus target is $23.32. The stock closed on Tuesday at $17.03, up over 6% for the day on the upgrade.
Marvell Technology Inc. (NASDAQ: MRVL): BNP Paribas started coverage with an Outperform rating and a $62 target. That compares with a $75.31 consensus target and Tuesday’s close at $48.02, which was down almost 5% on the day.
Nvidia Corp. (NASDAQ: NVDA): Goldman Sachs reiterated a Neutral rating on the chip giant and has a $162 target price. The consensus target is up at $202.09. The stock was last seen Tuesday trading at $131.31, down close to 10% for the day.
PayPal Holdings Inc. (NASDAQ: PYPL): Raymond James upgraded the shares to Outperform from Market Perform and has a $123 target. The consensus target is $120.44. The last trade on Tuesday was at $95.01 a share.
ReneSola Ltd (NYSE: SOL): Northland Capital started covering the stock with an Outperform rating and an $8 price target. The consensus target is $10.67, and Tuesday’s close was at $5.64.
RingCentral Inc. (NYSE: RNG): KeyBanc Capital Markets initiated coverage with an Overweight rating and a $59 target price. The higher $91.92 consensus target also compares with Tuesday’s closing print of $45.12.
Robinhood Markets Inc. (NASDAQ: HOOD): Goldman Sachs maintained a Neutral rating with an $11 target price. The consensus target is $11.76. The stock closed on Tuesday at $10.41.
Shopify Inc. (NYSE: SHOP): Citing a shift in investor sentiment and a challenging macroeconomic backdrop, Zacks selected this as the Bear of the Day stock. The shares have traded as high as $176.29 in the past year but closed most recently at $32.70. That is down more than 76% year to date.
Skyworks Solutions Inc. (NASDAQ: SWKS): Exane BNP Paribas initiated coverage with an Outperform rating and a $120 target price. The consensus target is higher at $137.57. Tuesday’s close was at $97.88.
SoFi Technologies Inc. (NASDAQ: SOFI): The BofA Securities upgrade to Buy from Neutral included a target price bump to $9 from $8. The consensus target is $8.54. The stock closed almost 9% lower on Tuesday at $5.84.
Steven Madden Ltd. (NASDAQ: SHOO): Loop Capital downgraded the popular footwear and accessories stock from Buy to Hold with a $30 target. The consensus target is $40.71 for now. The stock closed Tuesday at $28.96, down almost 8%, likely on the bad tape and the downgrade.
Twilio Inc. (NYSE: TWLO): KeyBanc Capital Markets initiated coverage with an Overweight rating. Its $96 price target is lower than the $140.81 consensus target. The $70.87 close on Tuesday was down over 6% for the day.
WESCO International Inc. (NYSE: WCC): Oppenheimer reiterated its Outperform rating with a $175 target price. The consensus target is $173.67. The shares were last seen on Tuesday trading at $137.98.
Western Digital Corp. (NASDAQ: WDC): Exane BNP Paribas started coverage with an Underperform rating and a $30 target price. The consensus target is up at $70. The shares closed on Tuesday at $39.32, down almost 10% on the day after warning that demand is eroding
Wipro Ltd. (NYSE: WIT): Goldman Sachs raised its Sell rating to Buy and has an odd $4.87 price target. The consensus target is $5.05. The stock closed on Tuesday at $5.12.
Wolfspeed Inc. (NYSE: WOLF): Evercore ISI initiated coverage with an Outperform rating and a $155 target price. The consensus target is just $114.97. The stock closed at $113.98 on Tuesday.
Given the expected surge in market volatility in October, seven safe dividend-paying stocks from the Goldman Sachs Conviction List of top picks may be the way for investors to go for now.
Another key analyst names a top pick from among six outstanding tech stocks.
Tuesday’s top analyst upgrades and downgrades included Adobe, Agnico Eagle Mines, Amgen, Barrick Gold, Comstock Resources, Enphase Energy, Huntsman, JD.com, Kinder Morgan, Lucid, Newmont, Okta, Starbucks, Union Pacific and Vale.
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