The futures were trading mixed Friday morning, as we get ready to end what has been an incredibly volatile week. The market’s rollercoaster Thursday started after the consumer price index (CPI) report came in hotter than expected, with a year-over-year print of 8.2%, the highest since 1982. After a massive initial sell-off in stocks and bonds, the markets reversed in a big way, with all three big indexes closing higher. The Dow Jones industrials led the way with a 2.83% gain.
Needless to say, with both the consumer and producer indexes still at the highest levels in four decades, a 75- basis-point increase in the federal funds rate early next month is a given.
The Treasury bond market saw massive selling after the CPI print, but buyers returned by late morning. While yields closed higher across the curve, they backed up in a big way from the early trading. The benchmark 10-year bond posted an intraday high yield of 4.08% before closing at 3.95%. That kept the inversion with the two-year note in place, as it closed at 4.43%. Bond mavens see the inversion as a recession warning.
Brent and West Texas Intermediate crude were equally as volatile Thursday. After falling big in early trading, both benchmarks rallied to close higher. Natural gas posted a solid 3% gain Thursday, closing at $6.63. Gold and Bitcoin both ended the day lower.
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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 Friday, October 14, 2022.
Albemarle Corp. (NYSE: ALB | ALB Price Prediction): Though Berenberg downgraded the stock to Hold from Buy, it raised its $260 target price to $270. The consensus target is $304.35. The stock ended Thursday trading at $255.99.
Altice USA Inc. (NYSE: ATUS): Citigroup’s upgrade to Buy from Neutral included a target price cut to $8 from $12. The consensus target is $13.86. The stock closed on Thursday at $5.44.
Apple Inc. (NASDAQ: AAPL): Credit Suisse reiterated an Outperform rating on the tech behemoth. The firm also trimmed its $201 target price to $190, still higher than the $183.16 consensus target. Apple’s closing trade for Thursday came in at $142.99 a share, which was up over 3% for the day.
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Avery Dennison Inc. (NYSE: AVY): BofA Securities cut its Buy rating to Neutral and lowered the $206 price target to $172. The consensus target is $208.58. Thursday’s final trade came in at $166.37 a share.
Black Hills Corp. (NYSE: BKH): BofA Securities downgraded the utility to Neutral from Buy, and it cut its $87 target price to $66. The consensus target is $83.00. The shares closed on Thursday at $62.48.
Ciena Corp. (NYSE: CIEN): Zacks selected this telecommunications networking stock as its Bear of the Day, citing declining earnings estimates as a huge red flag. The shares have traded as high as $78.28 in the past year but closed most recently at $40.15, which is down about 30% in the past six months.
Colgate-Palmolive Co. (NYSE: CL): J.P. Morgan upgraded the consumer staples giant from Neutral to Overweight with a $79 target price. The consensus target is $80.47. The stock closed almost 3% higher on Thursday at $71.01.
Intuitive Surgical Inc. (NASDAQ: ISRG): Mizuho initiated coverage of the robotic surgery leader with a Neutral rating and has a $215 target price. The consensus is much higher at $256.80. The last trade for Thursday was filled at $190.38.
Marathon Petroleum Corp. (NYSE: MPC): The Zacks Bull of the Day stock is set to continue its dominant trends despite lingering inflation, says the analyst. Shares last closed at $109.07, and the consensus target price of $125.71 would be an all-time high.
Mastercard Inc. (NYSE: MA): Deutsche Bank reiterated a Buy rating on the credit card giant but lowered its target price to $375 from $440. The consensus target is $412.23, and Thursday’s close at $293.96 was a gain of close to 4% for the day.
Medtronic PLC (NYSE: MDT): Mizuho started coverage of the medical devices giant with a Buy rating and a $100 price objective. The consensus target is $108.20. The closed 4% higher on Thursday at $83.51.
Meta Platforms Inc. (NASDAQ: META): Cowen reiterated an Outperform rating on the but cut its $250 target price to $205. The consensus target for the Facebook parent is $220.62. The stock ended trading on Thursday at $130.29.
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Monday.com Ltd. (NASDAQ: MNDY): KeyBanc Capital Markets initiated coverage with an Overweight rating and a $135 target price. The consensus target is higher at $185.40. Thursday’s close was at $95.86.
Nike Inc. (NYSE: NKE): Raymond James began covering the athletic shoe and apparel giant with an Outperform rating and a $99 target price. The consensus target is up at $113.49. The stock closed on Thursday at $89.56.
Owens & Minor Inc. (NYSE: OMI): As Citigroup downgraded the stock to Neutral from Buy, it slashed its $52 target price to $18. The consensus target is $30.83 for now. The stock was clubbed Wednesday, closing down 35% after posting negative preliminary third-quarter results that clearly missed the mark. Thursday’s close was at $15.37 a share.
Prologis Inc. (NYSE: PLD): Stifel started coverage with a Buy rating and a $128 target price. The consensus target is $149.81. The stock closed on Thursday at $102.50.
Realty Income Corp. (NYSE: O): Mizuho downgraded the real estate investment trust to Neutral from Buy and has a $61 target price. The consensus target is up at $75.63. The last trade for Thursday came in at $57.55.
Rexford Industrial Realty Inc (NYSE: REXR): Stifel initiated coverage with a Buy rating and a $64 target price. The consensus target is $77.71. The shares ended trading on Thursday at $52.40.
Skechers USA Inc. (NYSE: SKX): Raymond James started coverage with an Outperform rating and a $40 price target. The consensus target is higher at $49.75. Thursday’s final trade was posted at $34.93.
SLM Corp. (NYSE: SLM): Citigroup raised the former Sallie Mae to Buy from Neutral. It also trimmed its target price to $17 from $18. The consensus target is $19.35. Thursday’s close was at $15.68.
Sonoco Products Co. (NYSE: SON): BofA Securities upgraded the shares from Underperform to Buy with a $76 target. The consensus target is $67.50. Thursday’s $60.69 close was up almost 4% on the day.
Tenaris S.A. (NYSE: TS): Stifel’s upgrade to Buy from Hold included a target price hike to $38 from $30. That compares with the $37.10 consensus target and Thursday’s closing print of $28.63.
Ultragenyx Pharmaceutical Inc. (NASDAQ: RARE): Guggenheim raised its Neutral rating to Buy with a $50 target price. The consensus target is $112.13. Thursday’s close at $39.65 was up 3% on the day.
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Visa Inc. (NYSE: V): Deutsche Bank reiterated a Buy rating on the credit card giant while lowering the $270 target price to $260. The $256.41 consensus target also compares with Thursday’s close at $184.66.
Willis Towers Watson PLC (NASDAQ: WTW): Piper Sandler upgraded the stock to Overweight from Neutral and has a $250 price target. The shares have traded as high as $249.70 in the past year but closed on Thursday at $207.06. That was a 3% gain for the day.
Xencor Inc. (NASDAQ: XNCR): Raymond James upgraded the shares to Strong Buy from Outperform and has a $58 target price. The consensus target is just $48.25. The shares closed Thursday at $27.85, a gain of almost 5% on the day.
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While the technology sector is taking it on the chin now, it will be back. Eight blue-chip tech stocks pay dependable dividends, and their stocks have extremely high bounce-back potential and could be the first to take off in the coming market rally.
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Thursday’s early top analyst upgrades and downgrades included Boston Scientific, Caesars Entertainment, DraftKings, Fiserv, IBM, Medtronic, Norwegian Cruise Line, Pioneer Natural Resources and Raytheon Technologies. Analyst calls seen later in the day were on American Express, Biogen, Comcast, Las Vegas Sands, Sherwin-Williams, Under Armour and more.
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