The futures were lower, after we started the first full trading week of 2023 off on the right foot with all the major indexes following through on the strength from Friday. By the close, though, only the Nasdaq finished higher after it and the other index leaders surrendered a sizable amount of the early gains. With the December consumer price index data due on Thursday, many across Wall Street are estimating a dip in the inflation benchmark down to 6.5% from 7.1%, which was the initial major tailwind for the market Monday.
Treasury yields were lower across the curve Monday, as Friday’s big rally in the government bond market spilled over to Monday. The yields on the 10-year note closed at 3.52%, down from 3.90% just 10 days ago. The two-year note closed at 4.21% on Monday, keeping the widening inversion in place. Bond traders see the inversion as presaging a recession.
Brent and West Texas Intermediate crude both finished the day higher, after last week’s dreadful oil trading to start off the year. Analysts pointed to the selling last week (the benchmarks were down 8%), plus China has reopened its borders after a three-year Covid closure, sparking some hopes for a demand recovery. Natural gas, which was hammered last week, was the big winner Monday, closing up almost 6%. Gold, which has been on a tear, closed higher, while Bitcoin finished the day up almost 1.5%.
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, January 10, 2023.
AutoZone Inc. (NYSE: AZO): Guggenheim upgraded the stock to Buy from Neutral and has a $2,735 target. The consensus target is $26.20.21, and shares closed on Monday at $2441.75.
BorgWarner Inc. (NYSE: BWA): As BofA Securities downgraded the shares to Neutral from Buy, it cut its $78 target price to $50. The consensus target is $48.01. The stock closed at $42.24 on Monday.
Campbell Soup Co. (NYSE: CPB): Zacks makes the case that its Bull of the Day stock keeps pushing new highs as investors seek good old-fashioned stability. Shares last closed at $55.95, which is 15% or so higher than six months ago.
DoorDash Inc. (NYSE: DASH): Piper Sandler’s downgrade to Underweight from Neutral included a price target slash to $40 from $227. The consensus target is $75.35. The shares closed on Monday at $48.05.
Eli Lilly and Co. (NYSE: LLY): This stock is the Zacks Bear of the Day, as its guidance for this year dragged down analyst earnings estimates. Shares have traded as high as $375.25 apiece in the past year but closed most recently at $349.83, after retreating about 4% in the past week.
Enterprise Products Partners L.P. (NYSE: EPD): The Peer Perform rating at Wolfe Research rose to Outperform with a $27 price objective. The consensus target is $31.48, and the stock closed on Monday at $25.32.
Extra Space Storage Inc. (NYSE: EXR): Raymond James upgraded the stock to Outperform from Market Perform and has a $170 target. The consensus target is $182.15. Shares last closed at $147.30.
Ferrari N.V. (NYSE: RACE): Citigroup upgraded the shares to Neutral from Sell. Its $230.60 target price is less than the $239.24 consensus figure. Monday’s close was at $228.77 a share.
GXO Logistics Inc. (NYSE: GXO): Morgan Stanley boosted its Equal Weight rating to Overweight, and its $45 target price is now $60. The consensus target is $53.06. The shares closed on Monday at $48.74, up over 5% for the day on the upgrade.
Harmonic Inc. (NASDAQ: HLIT): Jefferies upgraded the stock to Buy from Hold and boosted its $14.25 target price to $19. The consensus target is $17.71. The stock closed almost 9% higher on Monday at $15.09, likely on the upgrade.
Mastercard Inc. (NYSE: MA): The KeyBanc Capital Markets upgrade was from Equal Weight to Overweight with a $425 target price. The consensus target is $401.82. The stock closed on Monday at $370.97.
MPLX L.P. (NYSE: MPLX): Wolfe Research upgraded the shares to Outperform from Peer Perform and has a $36 target price. The consensus target is $38.27. Monday’s close was at $33.61.
New Relic Inc. (NYSE: NEWR): When Truist Securities downgraded the stock to Hold from Buy, it also lowered its $80 target price to $55. That compares with a $67.25 consensus target and Monday’s close at $55.66.
Oracle Corp. (NYSE: ORCL): Piper Sandler lifted its Neutral rating to Overweight. The $85 target price increased to $104, well above the $91.25 consensus target. Monday’s close was at $86.42.
Saia Inc. (NASDAQ: SAIA): Morgan Stanley upgraded the shares to Equal Weight from Underweight and has a $185 target price. The consensus target is up at $237.27. The stock closed on Monday at $227.41.
ServiceNow Inc. (NYSE: NOW): The Buy rating at Truist Securities dropped to Hold, and the $525 target price is now $420. The $518.34 consensus target also compares with Monday’s final print of $378.56.
Shift4 Payments Inc. (NYSE: FOUR): When Goldman Sachs upgraded the stock to Buy from Neutral, it lifted its $48 target price to $67. The consensus target is $59.81, and Monday’s closing print of $57.50 was up close to 5% on the day, likely on the upgrade.
Silvergate Capital Corp. (NYSE: SI): Wedbush cut its Outperform rating to Neutral and lowered its $15 target price to $9. The consensus target is $17.50 for now. Monday’s closing trade was recorded at $11.55, down almost 6% for the day on the ongoing cryptocurrency issues.
Stryker Corp. (NYSE: SYK): The RBC Capital Markets upgrade to Outperform from Sector Perform included a target price hike to $284 from $240. The consensus target is $255.84. The stock ended Monday trading at $261.00 a share.
Toll Brothers Inc. (NYSE: TOL): Raymond James upgraded the luxury home builder to Outperform from Market Perform and has a $61 target price. The consensus target is just $55.64, and the stock was last seen trading at $53.39.
Uber Technologies Inc. (NYSE: UBER): Piper Sandler’s upgrade to Overweight from Neutral came with a target price bump to $33 from $31. The consensus target is higher at $46.08. The upgrade and positive commentary had the stock up almost 4% at the close to $27.40.
Unum Group Inc. (NYSE: UNM): Barclays upgraded the stock to Equal Weight from Underweight. Its $43 target price is less than the $45.08 consensus figure. The stock closed 32% lower on Monday at $40.32.
VICI Properties Inc. (NASDAQ: VICI): Raymond James downgraded the shares to Outperform from Strong Buy and trimmed its $38 target price to $36. The consensus target is $37.76. Monday’s close was at $31.98.
Visa Inc. (NYSE: V): KeyBanc Capital Markets upgraded the shares from Equal Weight to Overweight with a $210 target price. The consensus target is $249.93, and the stock closed at $218.60 on Monday.
24/7 Wall St.Welltower Inc. (NYSE: WELL): Raymond James upgraded the stock to Strong Buy from Outperform. It also raised its $72 target price to $82, above the $77.85 consensus target. The shares ended Monday trading at $69.27.
Zillow Group Inc. (NASDAQ: ZG): BofA Securities raised its Underperform rating to Buy and almost doubled its $22 target price to $42. The consensus target is $37.74. Monday’s close at $37.78 was up over 8% on the day after the upgrade and enthusiastic comments from the analyst.
Zimmer Biomet Holdings Inc. (NYSE: ZBH): The RBC Capital Markets upgrade was from Sector Perform to Outperform with a $141 target price, up from $125. The consensus target is $127.43, and Monday’s closing print was $126.05.
Investing for total return may be the best plan of action now, and these six Warren Buffett stock picks with the highest dividend yields look well positioned for what could be a difficult first half of 2023.
A key analyst grows increasingly positive on aerospace and defense stocks.
Monday’s top analyst upgrades and downgrades included Bank of America, Bloom Energy, Chevron, Coterra Energy, MGM Resorts, Occidental Petroleum, Penn Entertainment, Silvergate Capital, Snowflake, SunPower and Sunrun.
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