The futures were mixed after the major indexes all broke out for a long-awaited risk-on day to close higher for the first time in 2023. Strategists cited some cooler inflation numbers out of Europe, and other metrics that suggest inflation, while still historically high, is slowing. Some of the mega-cap leaders like Apple and Tesla rebounded after a dreadful start to the new year on fears of slowing demand. The FOMC minutes, while remaining hawkish, brought no additional major surprises to derail the rally Wednesday.

Yields across the Treasury curve were lower Wednesday, providing another lift to equities. Mortgage demand plunged to end 2022 down 13.2%, and the backup in yields is perceived as a positive there as well. The 10-year note closed at 3.71%, after hovering near 3.90% last week. The inversion with the two-year paper stayed in place as it closed on Wednesday at 4.36%. The inversion signals recession is on the way to the bond market.

Brent and West Texas Intermediate crude were the big losers, as both closed down almost 5% at $78.03 and $73.17, respectively. A small increase in December OPEC production and demand concerns seemed to weigh on the black gold the most. Institutional investors still remain quite positive on the oil for 2023 and have increased their long positions, according to reports. Natural gas was the big winner, closing up over 4% at $4.16. Gold continued to push higher, up 1% on the day at $1855, while Bitcoin also closed higher at $16,818, up almost 1%.

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 Thursday, January 5, 2023.

Albemarle Corp. (NYSE: ALB): Vertical Research raised its Hold rating to Buy with a $275 target price. The consensus target is $310.13. Wednesday’s final trade was reported at $223.57, up over 4% on the day.

Baidu Inc. (NASDAQ: BIDU): Zacks points out how its Bull of the Day stock could benefit from the softening by Chinese authorities on the country’s tech giants. Baidu shares last closed at $131.76, and the consensus price target of $165.03 signals more than 25% upside potential.

Bank of New York Mellon Corp. (NYSE: BK): Goldman Sachs upgraded the stock to Buy from Neutral and has a $59 target price. The consensus target is $49.80. Wednesday’s close was at $47.44.

Boston Beer Co. (NYSE: SAM): Jefferies downgraded shares of the popular brewer to Underperform from Hold and lowered the $331 target price to $275. The consensus target is $333.11. The stock closed on Wednesday at $327.72.
Celanese Corp. (NYSE: CE): RBC Capital Markets upgraded the stock to Outperform from Market Perform and boosted its $98 target price to $125. The consensus target is $120.04. The shares ended trading Wednesday at $109.15, which was up close to 7% for the day, on the upgrade.

Charles Schwab Corp. (NYSE: SCHW): The Goldman Sachs upgrade was from Neutral to Buy with a $98 target price. The consensus target is $93.07. Wednesday’s close was at $83.35.

Chart Industries Inc. (NYSE: GTLS): Raymond James lifted its Market Perform rating to Strong Buy with a $160 target price. The consensus target is higher at $205.60. The stock closed on Wednesday at $119.19.

Corning Inc. (NYSE: GLW): Credit Suisse raised the fiber-optic leader to Outperform from Neutral and has a $36 target price. The consensus target is $37.18. The stock closed almost 5% higher on Wednesday at $34.11 on the upgrade.

CyberArk Software Ltd. (NASDAQ: CYBR): SMBC Nikko initiated coverage with a Neutral rating and a $145 target price. The consensus target is up at $179.48. The last trade for Wednesday was reported at $129.27.

JFrog Ltd. (NASDAQ: FROG): As BofA Securities raised its Neutral rating to Buy, the target price rose to $32 from $28. The consensus target is $28.67. The shares ended Wednesday trading at $22.43.

Livent Corp. (NASDAQ: LTHM): The Hold rating at Vertical Research is now Buy with a $30 target price. The consensus target is $33.52. The shares closed on Wednesday at $19.52, up close to 3% for the day on the upgrade.

Maxeon Solar Technologies Ltd. (NASDAQ: MAXN): Raymond James raised its Market Perform rating to Outperform with a $22 target price. The consensus target is $23.60. The stock ended trading on Wednesday at $17.64, a 15% gain on the upgrade and the prospects for a new CEO, which was announced last week.

Merck & Co. Inc. (NYSE: MRK): The BofA Securities Neutral rating on the pharmaceutical giant is now Buy. Its $110 target price increased to $130, well above the $115.09 consensus target. The stock closed on Wednesday at $112.08.

Meta Platforms Inc. (NASDAQ: META): New Street began covering the Facebook/Instagram parent with a Buy rating and a $145 price objective. The higher $152.09 consensus target is also well above Wednesday’s closing share price of $127.37.

Microsoft Corp. (NASDAQ: MSFT): UBS’s downgraded to Neutral from Buy included a target price cut to $250 from $300. The consensus target is $296.61. Wednesday’s close was at $229.10, down over 4% for the day on the downgrade, as UBS was concerned about growth at Azure.

Nucor Inc. (NYSE: NUE): BofA Securities resumed coverage of the steel leader with a Buy rating and a $172 target price. The consensus target is $129.51. The stock closed almost 5% higher on Wednesday at $137.00.
Okta Inc. (NASDAQ: OKTA): SMBC Nikko initiated coverage with an Outperform rating and a $90 target price. The consensus target is $77.49. The stock closed on Wednesday at $70.18.

Pfizer Inc. (NYSE: PFE): The BofA Securities downgrade was from Buy to Neutral with a $60 target. The consensus target is $55.49. The shares closed on Wednesday at $50.13.

PowerSchool Holdings Inc. (NYSE: PWSC): As BofA Securities lifted its Neutral rating to Buy, its $20 price target went to $32. The consensus target is $22. Wednesday’s close was at $22.92.

Rapid7 Inc. (NASDAQ: RPD): Barclays downgraded the shares to Equal Weight from Overweight. It also trimmed its $40 target price to $37, well below the $46.36 consensus target. The stock closed on Wednesday at $35.30.

Rivian Automotive Inc. (NASDAQ: RIVN): Truist Securities reiterated a Buy rating but lowered its target price to $50 from $65. The consensus target is $43.89. The stock closed on Wednesday at $17.71.

Snap Inc. (NYSE: SNAP): New Street started coverage with a Buy rating and a $12 target price. The consensus target is $11.63. The stock was last seen on Wednesday trading at $9.30, up 5% on the day, likely on the new positive coverage.

Target Corp. (NYSE: TGT): Wells Fargo not only downgraded the big-box retail giant to Equal Weight from Overweight, it slashed the $170 target price to $142. The consensus target is up at $175.23. The last trade on Wednesday was for $152.72 a share.

Trane Technologies PLC (NYSE: TT): UBS upgraded the stock to Buy from Hold and boosted its $168 target price to $200, which would be a new 52-week high. The stock closed on Wednesday at $174.31.

Veeva Systems Inc. (NYSE: VEEV): Barclays upgraded the stock to Overweight from Equal Weight and set a $205 target price. The consensus target is $212.57, and Wednesday’s final print was $166.43, up more than 4% likely on the upgrade.

Vornado Realty Trust (NYSE: VNO): Though Mizuho upgraded the stock to Neutral from Underperform, it trimmed the $25 target price to $23. The consensus target is $23.45. The stock closed on Wednesday at $21.23.

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BofA Securities’ top trading ideas for the first quarter of 2023 include Goldman Sachs, Procter & Gamble and other outstanding stock picks for growth investors that could deliver in the short term. Also see the firm’s top picks per sector.

Wednesday’s top analyst upgrades and downgrades included Amazon, AMC Entertainment, Apollo Global Management, Apple, Block, Capital One Financial, Carlyle, CVS Health, Etsy, Fox, Gilead Sciences, Goldman Sachs, GSK, PayPal, Tesla, T-Mobile, U.S. Bancorp and Wynn Resorts.

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