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Target Earnings a Sign of Broader Retail Trends? Analysts Upgrade or Downgrade Home Depot, Intel, Nvidia and More

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Markets were pushing lower on Wednesday, with the Nasdaq leading the retreat with over 1.2% pullback. The Dow Jones industrials were holding flat, while the S&P 500 was down 0.5%. This also comes following a huge earnings miss by Target.

Target was rocked to the tune of 15% after the retail giant released third-quarter results and weak guidance going into the holiday quarter. However, this is set against a backdrop of improving retail sales according to the U.S. Department of Commerce. It said retail sales jumped 1.3% for the month of October, compared with consensus estimates calling for an improvement of 1.0%.

The question remains whether Target is just an outlier of an improving economic environment, or if the Commerce Department’s data is not truly reflective of the situation.

Here, 24/7 Wall St. is reviewing additional analyst calls seen on Wednesday. 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 included Cisco Systems, Home Depot, Netflix, Palo Alto Networks, Snowflake and Tyson Foods.

Advance Auto Parts Inc. (NYSE: AAP): UBS downgraded the stock to Neutral from Buy and cut its $230 price target to $182. The shares traded near $157 on Wednesday. The 52-week range is $154.46 to $244.55.

Cabot Corp. (NYSE: CBT): Deutsche Bank’s upgrade to Buy from Hold included a price target hike to $90 from $80. The shares traded near $73 on Wednesday. The 52-week range is $50.96 to $78.62.

DT Midstream Inc. (NYSE: DTM): Wolfe Research downgraded to a Peer Perform rating from Outperform. The stock was last seen trading near $60, in a 52-week range of $44.70 to $61.12.

Home Depot Inc. (NYSE: HD): Raymond James cut its Outperform rating to Market Perform. The stock traded near $307 on Wednesday, in a 52-week range of $264.51 to $420.61.

Intel Corp. (NASDAQ: INTC): Credit Suisse resumed coverage with a Neutral rating and a $28 price target. Shares traded near $30 on Wednesday, in a 52-week range of $24.59 to $56.28.

Lincoln National Corp. (NYSE: LNC): The Neutral rating at Goldman Sachs is now at Buy, but the firm cut its $50 price target to $46. The stock traded near $35 on Wednesday, in a 52-week range of $32.59 to $76.40.

Marvell Technology Inc. (NASDAQ: MRVL): Credit Suisse started coverage with an Outperform rating and a $56 price target. The stock has traded as high as $93.85 a share in the past year but was last seen near $43. That is down nearly 49% year to date.

Medtronic PLC (NYSE: MDT): Deutsche Bank’s downgrade was from Buy to Hold with an $85 price target. Shares have traded as high as $118.80 in the past year but were changing hands near $83 on Wednesday.

Microchip Technology Inc. (NASDAQ: MCHP): Credit Suisse initiated coverage with a Neutral rating and an $85 price target. The stock has traded as high as $90 a share in the past year but was last seen trading around $75. That is down over 11% year to date.

Nvidia Corp. (NASDAQ: NVDA): Credit Suisse resumed coverage with an Outperform rating and raised the $205 price target to $210. The 52-week trading range is $108.13 to $346.47. Shares changed hands near $162 apiece on Wednesday.

NXP Semiconductors N.V. (NASDAQ: NXPI): Credit Suisse started coverage with a Neutral rating and a $195 price target. The 52-week trading range is $132.08 to $239.91. Shares changed hands near $170 apiece on Wednesday.

ON Semiconductor Corp. (NASDASQ: ON): Credit Suisse initiated coverage with a Neutral rating and an $83 price target. The 52-week trading range is $44.76 to $77.28, and the share price was near $72 on Wednesday.


As Warren Buffett takes a surprising $5 billion stake in a semiconductor maker, BofA Securities suggests it is time for investors to test the waters with five top semiconductor picks that may be poised to turn around next year.

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