The futures were lower as we hit the midway point in the trading week. All the major indexes finished lower Tuesday, with the exception of the Dow Jones industrial average, which was able to grind out a modest gain. The big news after the market closed was Microsoft’s earnings, which came in mostly in line with Wall Street expectations and were what some analysts termed as “better than feared.”
Massive technology layoffs have continued this week, after Alphabet’s Google division laid off a stunning 12,000 to finish last week, Spotify trimmed its workforce by 6% and even industrial heavyweight 3M cut 2,500 jobs after missing earnings expectations. Layoffs combined with some historically bad fourth-quarter results are dampening the risk-on spirit.
Treasury yields were down across the curve, as the buyers returned while more disappointing economic data spilled out into the market. The weakening data, combined with debt ceiling issues, are stirring concerns over a potential default, which for now seems unlikely. The 10-year note closed at a 3.47% yield, while the two-year paper finished the day at 4.22%. The inversion between the two securities indicates to bond traders that recession is on the way.
After a solid run over the past week, both Brent and West Texas intermediate crude finished the day lower after media outlets suggested that OPEC will keep production unchanged when it meets next week. Production levels were cut by 2 million barrels per day in November, but most experts think the actual cut is more like 1 million barrels per day.
Natural gas was the big loser on the day, closing down almost 6% at $3.25 despite commentary that subzero temperatures across Asia had the potential to lift demand in a big way. Gold finished the day slightly higher while Bitcoin was flat after a big move higher recently.
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 25, 2023.
Amazon.com Inc. (NASDAQ: AMZN): Telsey Advisory reiterated an Outperform rating but lowered its $140 target price to $125. The consensus target is higher at $136.30. The shares closed on Tuesday at $96.32.
Blackstone Inc. (NYSE: BX): J.P. Morgan upgraded shares of the money management giant to Overweight from Equal Weight. Its $104 target price ticked up to $105. The consensus target is just $96.09, and shares closed on Tuesday at $88.19.
Caesars Entertainment Inc. (NASDAQ: CZR): Stifel reiterated a Buy rating, and its $63 target price is now $68. The consensus target is $65.71. The stock closed on Tuesday at $51.09.
Chipotle Mexican Grill Inc. (NYSE: CMG): Wells Fargo initiated coverage with an Overweight rating and a $1,800 target price. The consensus target is $1,772.14. The stock closed on Tuesday at $1,593.78.
Consolidated Edison Inc. (NYSE: ED): Evercore ISI’s upgrade to In Line from Underperform included a target price hike to $92 from $76. The consensus target is $87.00. The stock closed on Tuesday at $94.03.
Constellation Brands Inc. (NYSE: STZ): Zacks wonders if the party is over for its Bear of the Day stock. Shares have traded as high as $261.52 in the past year but closed most recently at $227.50. That is down about 6% in the past six months.
CyberArk Software Ltd. (NASDAQ: CYBR): J.P. Morgan initiated coverage with a Neutral rating and a $147 target price. The consensus target is up at $172.23. Tuesday’s close was at $136.13.
Dollar Tree Inc. (NASDAQ: DLTR): The Buy rating at Gordon Haskett dropped to Accumulate, and the firm’s $163 target price compares with a $164 consensus figure. Tuesday’s $146.52 close was almost 3% lower on the day.
Domino’s Pizza Inc. (NYSE: DPZ): Wells Fargo initiated coverage with an Equal Weight rating and a $360 target. The consensus target is $386.99. Tuesday’s final trade was delivered for $339.24.
DraftKings Inc. (NASDAQ: DKNG): Stifel initiated coverage with a Hold rating and a $15 target price. The consensus target is higher at $20.45. Tuesday’s close was at $14.92.
Fabrinet (NYSE: FN): The Zacks Bull of the Day stock has hit all-time highs ahead of earnings, points out the analyst. Shares of this Cayman Islands-based maker of electronic components last closed at $137.34, which is up 27% or so from 90 days ago.
GlobalFoundries Inc. (NASDAQ: GFS): Loop Capital initiated coverage with a Buy rating and a $70 target price. The consensus target is $69.14, and the stock closed on Tuesday at $59.01.
Intellia Therapeutics Inc. (NASDAQ: NTLA): The BofA Securities upgrade to Neutral from Sell came with a target price cut to $39 from $48. The consensus target is up at $101.54. The stock’s Tuesday close at $38.53 was up almost 8% on the day, perhaps on the upgrade.
24/7 Wall St.International Business Machines Corp. (NYSE: IBM): MoffettNathanson’s upgrade was from Underperform to Market Perform with a $140 price target. The consensus target is $143.49. The shares closed at $141.49 on Tuesday.
Lyft Inc. (NASDAQ: LYFT): KeyBanc Capital Markets lifted its Sector Weight rating to Overweight. The firm’s $24 target price tops the $22.42 consensus target. The shares closed on Tuesday at $15.30.
Marathon Oil Corp. (NYSE: MRO): Morgan Stanley’s upgrade was to Overweight from Equal Weight, but the $27 target price surprisingly rose just to $28. The consensus target is $34.40, and the stock closed at $27.86 on Tuesday.
McDonald’s Corp. (NYSE: MCD): Wells Fargo started coverage with an Equal Weight rating and a $280 target price. That compares with the $293.64 consensus target and Tuesday’s closing print of $269.56.
Palo Alto Networks Inc. (NASDAQ: PANW): J.P. Morgan initiated coverage with an Overweight rating and a $195 target price. The consensus target is $206.39. Tuesday’s close was at $151.14.
Progress Software Inc. (NASDAQ: PRGS): Guggenheim resumed coverage with a Buy rating. Its $60 target price is higher than the $56.40 consensus target. The stock closed on Tuesday at $51.50.
Starbucks Corp. (NASDAQ: SBUX): Wells Fargo initiated coverage with an Overweight rating and a $120 target price. The consensus target is $105.13. Shares closed on Tuesday at $106.64.
Target Corp. (NYSE: TGT): Oppenheimer initiated coverage with an Outperform rating and a $190 target price. The consensus target is $174.48, and Tuesday’s closing share price was $163.55.
Toast Inc. (NASDAQ: TOST): Baird’s downgrade was to Neutral from Outperform, and the analyst trimmed the $26 price target to $24. The consensus target is $24.43. The stock closed almost 4% lower on Tuesday at $21.46 after the downgrade.
Universal Health Services Inc. (NYSE: UHS): UBS upgraded the stock to Neutral from Sell and boosted its $113 price target all the way to $167. The consensus target is $138.53. The shares closed on Tuesday at $146.13.
24/7 Wall St.West Fraser Timber Co. Ltd. (NYSE: WFG): Though Credit Suisse upgraded the stock from Neutral to Outperform, it trimmed its $100 target price to $95. The consensus target is $108.33. The stock closed almost 5% higher on Tuesday at $78.05.
Xylem Inc. (NYSE: XYL): Stifel raised its Hold rating to Buy, and its $115 target price rose to $125. The consensus target is $112.09. Tuesday’s close was at $103.57.
ZScaler Inc. (NASDAQ: ZS): J.P. Morgan started coverage with a Neutral rating and a $124 target price. The consensus target is up at $170.29. Tuesday’s last trade was for $122.65 a share.
Seven Raymond James analyst favorite stock picks with big, dependable dividends are in sectors that should thrive in the current environment. They look like outstanding ideas for growth and income investors looking to reset portfolios for the rest of the year.
Tuesday’s top analyst upgrades and downgrades included Advanced Micro Devices, Altice USA, Apple, CrowdStrike, First Energy, Lucid, Netflix, Qualcomm, Seagate Technology, Shopify, Skyworks Solutions, Tesla, Wayfair, Western Digital, Workday and Zoom Video Communications.
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