The futures were edging higher as the first trading week of 2023 is off and running. Despite this being a truncated trading week, there has already been a lot of action that took place on Tuesday. The question on investors’ minds is whether markets can shake off 2022 and actually make positive headway in the new year.
All the major indexes closed lower to end 2022, with the Nasdaq once again leading the way. The tech-heavy index closed down a stunning 33% last year, while the S&P 500 barely dodged bear market status by closing down 19.44%. The Dow Jones industrials fared the best, down 8.82%. This past year was one of the worst on record for equities since the 2008 financial crisis.
Brent and West Texas Intermediate crude both closed solidly higher to end the year. Many across Wall Street feel that the energy sector, which was one of the few winners in 2022, may be poised for another banner year. Natural gas once again closed lower at $4.44, down almost 3%, ending a bad week despite the record winter storms that blew across the United States during the Christmas holiday weekend. Gold continued to close higher on the day, while Bitcoin is still trying to figure out a direction after a horrific year for the cryptocurrency.
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 Wednesday, January 4, 2023.
Amazon.com Inc. (NASDAQ: AMZN): The November retail sales report prompted analysts to cut estimates for retailers, points out Zacks, which named this stock as its Bear of the Day. Shares have traded as high as $170.83 in the past year but closed most recently at $85.82.
AMC Entertainment Holdings Inc. (NYSE: AMC): B. Riley Securities reiterated a Neutral rating and cut its $7.50 price target to $4.50. The consensus target is $2.99, and the final trade on Tuesday was for $3.93 a share.
Apollo Global Management Inc. (NYSE: APO): Keefe Bruyette downgraded the stock to Market Perform from Outperform and has a $77 price target. The consensus target is $71.50, and shares ended Tuesday trading at $62.81.
Apple Inc. (NASDAQ: AAPL): Exane BNP Paribas downgraded the shares to Neutral from Outperform and has a $140 price target. The consensus target is $176.20. The stock closed on Tuesday at $125.07.
Block Inc. (NYSE: SQ): Robert Baird’s upgrade was to Outperform from Neutral, and raised its $62 price target to a $78. The consensus target is $89.00. The shares ended Tuesday trading at $64.64, which was a one-day gain of nearly 3%.
Capital One Financial Corp. (NYSE: COF): Barclays cut its Overweight rating to Equal Weight and its $160 price target to $119. The stock closed at $92.97 on Tuesday with a consensus price target of $123.06.
Carlyle Group Inc. (NASDAQ: CG): The Keefe Bruyette downgrade was from Outperform to Market Perform with a $36 price target. The consensus target is $40.64. The shares closed on Tuesday at $29.99.
CVS Health Corp. (NYSE: CVS): Evercore ISI cut its Outperform rating to In Line and its $120 price target to $100. The shares last closed at $92.91, which is about 9% lower than a month ago. The consensus price target is $117.60.
Edison International (NYSE: EIX): UBS upgraded it to Buy from Neutral and raised its price target to $75 from $69. The consensus target is $68.14. The stock closed on Tuesday at $64.28.
Etsy Inc. (NASDAQ: ETSY): Needham’s upgrade was from Hold to Buy with a $160 price target. The consensus target is $122.92. The stock closed Tuesday at $113.56.
Fox Corp. (NASDAQ: FOXA): Wolfe Research downgraded it to Underperform from Peer Perform and has a $28 price target. The consensus target is $37.17. Tuesday’s close was at $30.27.
Gilead Sciences Inc. (NASDAQ: GILD): RBC Capital Markets lowered its Outperform rating to Sector Perform with an $87 price target. The consensus target is $85.00. The stock closed on Tuesday at $85.39.
Goldman Sachs Group Inc. (NYSE: GS): Wolfe Research’s Outperform rating dropped to Peer Perform. The consensus target is $391.84. Tuesday’s close was at $346.22.
GSK PLC (NYSE: GSK): J.P. Morgan downgraded the stock to Underweight from Neutral. The consensus target is $43.04. The shares closed on Tuesday at $35.29.
Kimberly-Clark Corp. (NYSE: KMB): The Jefferies downgrade to Hold from Buy came with a price target hike to $139 from $137. The consensus target is $127.29. The last trade on Tuesday came in at $137.11, down over 3% for the day.
M&T Bank Corp. (NYSE: MTB): Wedbush upgraded the shares to Outperform from Neutral and has a $170 price target. Barclays cut its Overweight rating to Equal Weight and its $225 price target to $194. Shares have traded as high as $193.42 in the past year but closed most recently at $144.97. That is down about 14% in the past month.
PayPal Holdings Inc. (NASDAQ: PYPL): Truist’s Hold rating is now Buy, with a $95 price target. The consensus target is $105.63. The last trade for Tuesday was posted at $74.58.
Tesla Inc. (NASDAQ: TSLA): J.P. Morgan reiterated an Underweight rating and cut its price target to $125 from $150. Truist reiterated a Buy rating, but it cut its $348 price target to $299. Goldman Sachs also reiterated a Buy rating, and its $235 price target dropped to $205. Over the past 52 weeks, Tesla’s shares have traded between $104.65 and $390.11, and they have a $240.48 consensus price target. The final trade on Tuesday was for $108.10 a share.
T-Mobile US Inc. (NASDAQ: TMUS): Wolfe Research’s downgrade was to Peer Perform from Outperform. The consensus target is $176.43. The stock closed on Tuesday at $139.04.
Twist Bioscience Corp. (NASDAQ: TWST): Evercore ISI upgraded the stock to Outperform from In Line. The firm also raised its $28 price target to $36, just above the $35.75 consensus target. The stock closed on Tuesday at $23.81.
Universal Health Services Inc. (NYSE: UHS): As Wells Fargo upgraded the shares to Equal Weight from Underweight, it also raised its $113 price target to $154. The consensus target is $128.29. The stock closed on Tuesday at $142.61.
U.S. Bancorp. (NYSE: USB): Barclays upgraded the stock to Overweight from Equal Weight and raised the $62 price target to $68. The stock ended Tuesday’s session at $44.64 a share, with a consensus price target of $51.90.
Wynn Resorts Ltd. (NASDAQ: WYNN): Wells Fargo’s upgrade to Overweight from Equal Weight included a price target hike to $101 from $74. The consensus target is $94.62. The stock closed on Tuesday at $85.61.
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Tuesday’s top analyst upgrades and downgrades included Ally Financial, Apple, Block, DocuSign, D.R. Horton, EOG Resources, Ford, Micron Technology, Novavax, PayPal, Pfizer and TG Therapeutics.
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