The futures were higher as we get ready to end a rough, holiday-shortened trading week. All the major indexes closed lower on Thursday, as the risk-off momentum continued to build after a solid start to the year. Mounting layoffs, disappointing earnings and guidance, some disappointing economic numbers and a host of other items have squashed the soft-landing narrative, at least for now. Toss in the “higher for longer” mantra being spun by Federal Reserve officials, and all the ingredients are in place for more selling.

Interest rates were higher across the Treasury curve, after the 10-year yield plunged to its lowest level in four months on Wednesday. Between the ongoing inversion between the 10-year note, which closed at 3.40%, and the two-year, which ended Thursday at 4.12%, the bond market as a whole is signaling that a recession is not only on the way but could be imminent.

Brent and West Texas Intermediate crude finished the day higher, after closing lower on Wednesday, which put an end to the black gold’s eight-day winning streak. The narrative surrounding improving demand from China continues to push the two benchmarks higher. Natural gas also finished the day modestly lower at $3.20. Gold and Bitcoin closed Thursday with solid gains, as the cryptocurrency leader regained the $21,000 level.

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 Friday, January 20, 2023.

Alcoa Corp. (NYSE: AA): B. Riley Securities resumed coverage with a Neutral rating but bumped its target price to $42 from $41. The consensus target is $51.82. The stock closed on Thursday at $49.55, down over 7% for the day after earnings missed the mark for the quarter.

Assurant Inc. (NYSE: AIZ): Truist Securities reiterated a Buy rating with a $170 target price. That compares with the $158.60 consensus target and Thursday’s closing print of $125.86.

Charles Schwab Corp. (NYSE: SCHW): BofA Securities downgraded the legacy discount brokerage firm to Underperform from Buy and lowered its $92 target price to $75. The consensus target is $97.93. The stock closed almost 7% lower on Thursday at $76.32 on the double downgrade.
Coca-Cola FEMSA SAB de C.V. (NYSE: KOF): UBS downgraded the stock to Neutral from Buy, but its $76 price target rose to $80, above the $70.47 consensus target. The shares were last seen on Thursday trading at $70.09.

Cognizant Technology Solutions Corp. (NASDAQ: CTSH): MoffettNathanson’s downgrade to Underperform from Market Perform included a price target cut to $60 from $70. The consensus target is $63.58. The stock closed on Thursday at $61.37.

CureVac N.V. (NASDAQ: CVAC): UBS upgraded the stock to Buy from Neutral, and its $8 target price is now $18. The consensus target is $16.50. The stock closed over 9% higher on Thursday at $10.35, after it was reported the company may have a competitive mRNA platform.

DXC Technology Co. (NYSE: DXC): MoffettNathanson’s downgrade was to Underperform from Market Perform, and it trimmed its $34 price target to $28. The consensus target is $33.84. The stock closed on  Thursday at $28.17.

HCI Group Inc. (NYSE: HCI): Compass Point initiated coverage with a Buy rating and a $56 target price. The consensus target is higher at $85.00, but shares closed on Thursday at $46.46.

International Business Machines Corp. (NYSE: IBM): MoffettNathanson raised its Underperform rating to Market Perform with a price target of $140. The consensus target is $143.49. The shares closed on Thursday at $140.59.

Meritage Homes Corp. (NYSE: MTH): This homebuilder stock is the Bear of the Day at Zacks, which suggests that analysts are not optimistic about new home sales. Shares have traded as high as $107.72 in the past year and closed most recently at $97.85.

Newmont Corp. (NYSE: NEM): Though Canaccord Genuity downgraded the stock to Hold from Buy, it raised its $50 target price to $56. The consensus target is $54.88. The final trade on Thursday was reported at $52.46.

Noble Corp. PLC (NYSE: NE): Benchmark initiated coverage with a Buy rating and a $50 target. The consensus target is $51.00, and shares ended Thursday at $40.22.

Okta Inc. (NASDAQ: OKTA): Zacks points that analysts are growing bullish again on its Bull of the Day stock. The shares last closed at $67.67, and the consensus price target of $79.34 signals more than 17% upside potential.

Philip Morris International Inc. (NYSE: PM): The Hold rating at Jefferies is now at Buy, and the analyst raised the $86 target price to $118. The consensus target is $105.55. The stock closed on Thursday at $101.17.
Roblox Corp. (NYSE: RBLX): Morgan Stanley’s downgrade to Underweight from Equal Weight came with a price target trim from $27.50 to $24. The consensus target is up at $36.35. The stock closed almost 7% lower on Thursday at $33.40 after the downgrade.

Shopify Inc. (NYSE: SHOP): Truist Securities reiterated a Hold rating but raised its $35 target to $41. The consensus target is $41.02. Thursday’s close was at $38.06.

TE Connectivity Ltd. (NYSE: TEL): Evercore ISI’s downgrade was from Outperform to In Line with a $130 target price. The consensus target is $135.87. The stock closed on Thursday at $121.35.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA): As Jefferies downgraded it to Hold from Buy, the firm also lifted its $10 target price to $12. The consensus target of $9.80 is lower than Thursday’s $10.56 closing share price.

Texas Instruments Inc. (NASDAQ: TXN): Oppenheimer reiterated an Outperform rating on the legacy chip giant and has a $185 target price. The consensus target is $173.59. The stock closed on Thursday at $170.93.

Toll Brothers Inc. (NYSE: TOL): Oppenheimer initiated coverage on the luxury home builder with an Outperform rating and a $71 target price. The consensus target is just $59.27, and shares closed on Thursday at $55.08.

Transocean Ltd. (NYSE: RIG): Benchmark began coverage with a Buy rating and a $7.50 target price. The consensus target is just $5.34, and the stock ended Thursday’s session trading at $5.70.

Universal Display Corp. (NASDAQ: OLED): Susquehanna upgraded the stock to Neutral from Negative. It also raised its $82 target price to $135, but the consensus target is still higher at $137.96. Thursday’s close was at $127.97.

Valaris Ltd. (NYSE: VAL): Benchmark started coverage with a Buy rating and a $95 price objective. The consensus target is $91.60. The stock closed on Thursday at $73.96.

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Seven top real estate investment trust picks from Truist Securities have among the highest yields and look like very timely ideas now for steady growth, hard asset ownership and substantial and dependable income.

Thursday’s top analyst upgrades and downgrades included Adobe, Apple, Conagra Brands, CrowdStrike, Fortinet, IBM, Mobileye Global, Morgan Stanley, Oatly, Oracle, PayPal, Seagate Technology, Shopify and Williams Companies.

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