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With Fed Rate Hike Incoming, Analysts Upgrade or Downgrade AMD, Gilead Sciences, Paramount and More
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Markets pulled back to start out the week, as more earnings are on the way. The Nasdaq led the charge lower, down nearly 1%, while the S&P 500 and Dow Jones industrials were down fractionally.
Monday’s move could be in anticipation of the upcoming Fed monetary policy meeting on Tuesday and Wednesday. Many are expecting what has become the standard Fed rate hike of 75 basis points. However, following this meeting, the Fed is expected to slow its interest rate increases for the foreseeable future.
Also be on the lookout for October’s employment report on Friday.
Here, 24/7 Wall St. is reviewing additional analyst calls seen on Monday. We have included the latest call on each stock, as well as a recent trading history and the consensus targets among analysts. Note that analyst calls seen earlier in the day were on Amazon, Apple, Comcast, Intel, McDonald’s and more.
Advanced Micro Devices Inc. (NASDAQ: AMD): Northland Capital downgraded the stock to Market Perform from Outperform and cut the $80 price target to $60. The shares traded near $60 on Monday. The 52-week range is $54.57 to $164.46.
Amgen Inc. (NASDAQ: AMGN): Barclays lowered its Equal Weight rating to Underweight with a $234 price target. The stock traded near $270 on Monday, in a 52-week range of $198.64 to $274.54.
BioMarin Pharmaceutical Inc. (NASDAQ: BMRN): Oppenheimer’s upgrade to Outperform from Perform included a price target hike to $110 from $92. Shares traded near $86 on Monday, in a 52-week range of $70.73 to $97.76.
Caterpillar Inc. (NYSE: CAT): Though UBS downgraded the shares to Neutral from Buy, it also raised its $225 price target to $230. The stock traded near $217 on Monday, in a 52-week range of $160.60 to $237.90.
Gilead Sciences Inc. (NASDAQ: GILD): The upgrade at Barclays was to Equal Weight from Underweight, with the $60 price target hiked to $76. The 52-week trading range is $57.17 to $79.61, and the share price was near $78 on Monday.
Hanesbrands Inc. (NYSE: HBI): Wells Fargo cut its Overweight rating to Underweight and lowered its $13 price target to just $5. The stock was last seen trading near $77, in a 52-week range of $57.17 to $77.00.
Honeywell International Inc. (NASDAQ: HON): Daiwa Securities downgraded it to Neutral from Outperform. It also cut the $206 price target to $194. Shares have traded as high as $228 in the past year but were changing hands near $203 on Monday.
Imperial Oil Ltd. (NYSE: IMO): The BMO Capital Markets upgrade was to Outperform from Market Perform. The stock has traded as high as $58 a share in the past year but was last seen near $54. That is up nearly 50% year to date.
Keurig Dr Pepper Inc. (NASDAQ: KDP): Truist’s Hold rating dropped to Sell, and the firm cut its $40 price target to $30. The stock has traded as high as $41 a share in the past year but was last seen trading around $39. That is up over 7% year to date.
Newell Brands Inc. (NASDAQ: NWL): The Barclays downgrade to Underweight from Equal Weight came with a price target cut to $11 from $16. The 52-week trading range is $13.73 to $26.45. Shares changed hands near $14 apiece on Monday.
Paramount Global (NASDAQ: PARA): Wells Fargo downgraded the stock to Underweight from Equal Weight and cut its $19 price target to $13. The shares traded near $18 on Monday. The 52-week range is $17.91 to $39.21.
PureStorage Inc. (NYSE: PSTG): When Morgan Stanley boosted its Equal Weight rating to Overweight, it also raised its $35 price target to $37. The 52-week trading range is $21.90 to $36.71. Shares changed hands near $31 apiece on Monday.
TuSimple Holdings Inc. (NASDAQ: TSP): BofA Securities reduced its Neutral rating to Underperform. The stock traded near $3.50 on Monday, in a 52-week range of $3.31 to $43.79.
With the potential for big downside still looming, and interest rates definitely headed higher, stock investors may want to consider seven Dividend Aristocrats that posted better than expected third-quarter results and have solid upside potential.
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