The futures were mixed after a rough start to the trading week that saw all the major indexes trade lower, with the Russell 2000 getting punished the most, down almost 3%. Top Wall Street strategists cited the big market rally over the past six weeks as a main reason for the selling pressure. The S&P 500 closed below the 200-day moving average, and that could trigger more selling as the market braces for next week’s Federal Reserve meeting.
Interest rates were higher across the Treasury curve as sellers finally stepped in to take some profits after big moves higher for all the maturities recently. The 10-year note closed at 3.60%, keeping the inversion with the two-year in place as the short maturity ended trading on Monday at 4.40%. The yield curve inversion is at the widest level in 41 years.
Both Brent and West Texas Intermediate crude closed Monday down big, even after Sunday’s announcement that OPEC would be keeping production cuts announced in September in place until at least the summer of 2023. Natural gas also was hammered Monday, closing down well over 10% after it was reported the natural gas consumption in Europe is 24% below the five-year average. Gold and Bitcoin both finished the day lower.
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 Tuesday, December 6, 2022.
Allegiant Travel Co. (NASDAQ: ALGT): Morgan Stanley downgraded the stock to Equal Weight from Overweight and chopped its $175 price target to $115. The consensus target is $114.33. Shares closed almost 5% lower on Monday at $77.98.
AON PLC (NYSE: AON): MKM Partners reiterated a Buy rating and raised its $335 target price to $360. The consensus target is $303.15. Monday’s close was at $308.78
Callon Petroleum Co. (NYSE: CPE): J.P. Morgan upgraded the stock to Neutral from Underweight and has a $57 target price. The consensus target is $61.94. Monday’s close at $39.49 was down over 4% on the day.
Commerce Bancshares Inc. (NASDAQ: CBSH): Morgan Stanley started coverage with an Equal Weight rating and a $74 target price. The consensus target is $68.17. The stock closed on Monday at $68.43.
CrowdStrike Holdings Inc. (NASDAQ: CRWD): Daiwa Securities upgraded the stock to Buy from Outperform. It also trimmed its $193 target price to $181, below the $183.94 consensus target. The shares closed Monday at $118.33, down almost 5% as worries over corporate spending surfaced.
Diamondback Energy Inc. (NASDAQ: FANG): Johnson Rice lifted its Accumulate rating to Buy with a $210 target price. The consensus target is lower at $183.70. The stock closed on Monday at $142.00.
DoorDash Inc. (NYSE: DASH): Oppenheimer reiterated an Outperform rating with a $70 target price. The consensus target is $74.87. Monday’s close at $53.25 was down over 3% on the day.
Etsy Inc. (NASDAQ: ETSY): Jefferies reiterated a Buy rating and has a $175 target price. The consensus target is $116.82. The stock closed on Monday at $137.21.
G-III Apparel Group Ltd. (NASDAQ: GIII): Citing back-to-back earnings misses and cratering estimates, Zacks selected this as its Bear of the Day stock. Shares have traded as high as $31.70 in the past year but closed most recently at $12.26. That is down more than 37% in the past 90 days.
Fox Factory Holding Corp. (NASDAQ: FOXF): Stifel raised its $115 target price to $133 while reiterating a Buy rating. The consensus target is $116.33. The final Monday trade was recorded at $108.71.
Hyatt Hotels Inc. (NYSE: H): Morgan Stanley initiated coverage with an Overweight rating and a $136 target price. The consensus target is $106.69. The stock closed on Monday at $97.92.
Jack in the Box Inc. (NASDAQ: JACK): RBC Capital Markets reiterated an Outperform rating but trimmed its $89 target price to $81. The consensus target is $83.33. Monday’s close was at $69.73.
JetBlue Airways Corp. (NASDAQ: JBLU): Citigroup started coverage with a Neutral rating. Its $9 target price is the same as the consensus target. The stock closed at $8.01 on Monday.
Laredo Petroleum Inc. (NYSE: LPI): J.P. Morgan cut its Neutral rating to Underweight with a $69 target price. The consensus target is $88.63. Monday’s $56.11 close was down almost 9% on the day with the weak market.
Lululemon Athletica Inc. (NASDAQ: LULU): Stifel raised its $400 target price on the Buy-rated shares to $450. The consensus target is just $382.44. The stock closed on Monday at $381.13.
Marriott International Inc. (NASDAQ: MAR): Morgan Stanley started coverage with an Overweight rating and a $190 target price. The consensus target is $168.29. The stock closed at $162.04 on Monday.
Rent-A-Center Inc. (NASDAQ: RCII): Craig Hallum started coverage with a Buy rating. Its $40 target price compares with a $34.75 consensus target and Monday’s close at $23.18.
Ritchie Bros. Auctioneers Inc. (NYSE: RBA): Scotiabank’s upgrade to Sector Outperform from Sector Perform included a target price hike to $65 from $59. The consensus target is $61.00. Monday’s close was at $55.12.
Signature Bank (NASDAQ; SBNY): As Morgan Stanley downgraded the shares to Equal Weight from Overweight, it also slashed its $223 target price to $152. The consensus target is $208.29 for now. Monday’s final trade was for $125.88 a share. That was down almost 8% on the day, likely on the downgrade and the market sell-off.
Silvergate Capital Corp. (NYSE: SI): Morgan Stanley cut its Equal Weight rating to Underweight with a $24 target price. The consensus target is up at $50.55. Monday’s close at $24.24 was down almost 9% for the day on the downgrade.
SolarEdge Technologies Inc. (NASDAQ: SEDG): Cowen reiterated an Outperform rating and lifted its $309 target price to $360. The consensus target is $332.32. The shares ended Monday trading at $314.06
Spire Inc. (NYSE: SR): J.P. Morgan’s downgrade was to Neutral from Overweight. Its $69 target price is less than the $73.33 consensus target. The stock closed Monday at $65.13, down over 5% for the day on no news we could source other than the bad tape.
Stericycle Inc. (NASDAQ: SRCL): Stifel reiterated a Buy rating with a $75 target price. The consensus target is lower at $70, and shares closed on Monday at $52.59.
Terex Corp. (NYSE: TEX): Deutsche Bank’s downgraded was to Hold from Buy. Its $46 target price is in line with the $46.10 consensus target. Monday’s closing print was $44.87.
Titan Machinery Inc. (NASDAQ: TITN): Zacks named this stock as its Bull of the Day. The analyst suggests that heavy equipment sales are ticking up. Shares last closed at $42.00, and the consensus price target of $47.00 would be an all-time high.
24/7 Wall St.United Therapeutics Inc. (NASDAQ: UTHR): Goldman Sachs initiated coverage with a Sell rating and a $230 target price. The consensus target is higher at $284.30. The shares ended Monday at $273.72.
Wabash National Corp. (NYSE: WNC): Vertical Research downgraded the shares from Buy to Hold with a $27 target. The consensus price objective is $22.80. The stock closed on Monday at $25.37.
Warner Music Group Corp. (NYSE: WMG): Goldman Sachs maintained a Buy rating but trimmed its $35 target price to $32. The consensus target is $34.59. The stock closed on Monday at $33.75.
Though many of the top energy stocks have backed up from their summertime highs, crude prices could be poised to spike. Six Buy-rated stocks are among the best values now and offer investors growth potential and big, dependable dividends.
Monday’s early top analyst upgrades and downgrades included Broadcom, Dollar General, DoorDash, FIGS, Lennar, Marvell Technology, PayPal, Permian Resources, UDR, Vipshop and Zscaler. Analyst calls seen later in the day were on Alaska Air, Comcast, Comerica, First Republic Bank, Huntington Bancshares, MGM Resorts International, Murphy Oil, Starbucks and more.
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