Investing

Is Inflation Slowing? Analysts Upgrade or Downgrade Best Buy, Caesars, Datadog and More

Chris Lange

Published: December 14, 2022 12:05 pm

Markets were fairly positive to start out the day, with all the major indexes up roughly 0.6% thus far. This all comes in anticipation of the Federal Reserve’s announcement of a 50-basis-point interest rate increase coming in the afternoon.

The move is expected to shift the federal funds rate to the range of 4.25% to 4.50%, which would be the highest level we have seen since December 2007.

Note that this decision follows the most recent consumer price index (CPI) print, in which the index rose at an annual 7.1%, less than the 7.3% consensus estimate. November’s CPI came in under October as well, signaling an overall slowing of inflation.

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 American Express, Disney, Etsy, PayPal, Philip Morris, Pinterest, Robinhood and more.

AutoZone Inc. (NYSE: AZO): BofA Securities downgraded the stock to Underperform from Neutral. The 52-week trading range is $1,703.32 to $2,610.05. Shares changed hands near $2,388 apiece on Wednesday.

Best Buy Co. Inc. (NYSE: BBY): BofA Securities cut its Neutral rating to Underperform and lowered its $80 price target to $69. The shares traded near $82 on Wednesday. The 52-week range is $60.79 to $112.96.

Caesars Entertainment Inc. (NASDAQ: CZR): The BofA Securities downgrade to Neutral from Buy included a price target cut to $55 from $60. The shares traded near $51 on Wednesday. The 52-week range is $31.31 to $97.39.

Darden Restaurants Inc. (NYSE: DRI): As Wedbush upgraded the shares to Outperform from Neutral, it also raised its $134 price target to $160. Shares have traded as high as $155.25 in the past year but were changing hands near $145 on Wednesday.

Datadog Inc. (NASDAQ: DDOG): Oppenheimer’s upgrade from Perform was to Outperform with a $105 price target. The stock traded near $81 on Wednesday, in a 52-week range of $66.45 to $186.28.

Digital Realty Trust Inc. (NYSE: DLR): Wells Fargo cut its Overweight rating to an Equal Weight, and its $120 price target dropped to $115. Exane BNP Paribas started coverage with a Neutral rating and a $128 price target. The stock was last seen trading near $108, in a 52-week range of $85.76 to $178.22.

Hilton Worldwide Holdings Inc. (NYSE: HLT): The Buy rating at Citigroup has dropped to Neutral. The analyst also trimmed the $150 price target to $148. The stock has traded as high as $167.99 a share in the past year but was last seen at around $136. That is down 11% year to date.

Lennar Corp. (NYSE: LEN): Barclays upgraded the stock to Overweight from Equal Weight and raised its $85 price target to $116. The stock has traded as high as $147.70 in the past year but was last seen near $109. That is up 22% year to date.

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Marriott International Inc. (NASDAQ: MAR): Note that Citigroup’s downgrade to Neutral from Buy came with a price target hike to $175 from $170. The 52-week trading range is $131.01 to $195.90. Shares changed hands near $161 apiece on Wednesday.

Moderna Inc. (NASDAQ: MRNA): The Chardan Capital Markets downgrade to Neutral from Buy included a price target hike from $186 to $191. The stock traded near $210 on Wednesday, in a 52-week range of $115.03 to $321.30.

PENN Entertainment Inc. (NASDAQ: PENN): As BofA Securities cut its Buy rating to Neutral, it also lowered its $45 price target to $40. Shares traded near $34 on Wednesday, in a 52-week range of $25.49 to $53.36.

SolarEdge Technologies Inc. (NASDAQ: SEDG): Barclays upgraded the shares to Overweight from Equal Weight, and its $389 price target increased to $396. The stock traded near $340 on Wednesday, in a 52-week range of $190.15 to $375.90.