The futures were mixed on Tuesday, after a slow start to the trading week that saw the weakness from Friday carry through and all the major indexes finished the day lower. After a strong rally to start the year, many across Wall Street feel that some profit-taking was likely one of the reasons for the risk-off sentiment. There also was some ongoing dismay after the massive January jobs report from last Friday. Many now feel that any sort of Federal Reserve pivot will not be in play until next year and that the federal funds terminal rate now could be as high as 5.25%.
Treasury yields spiked higher again on Monday, which was another reason the sellers had a tailwind. The 10-year note popped up by double digits again Monday to close at a 3.63% yield, a 25-basis-point jump since the first of February. The two-year note spiked 16 basis points to close at 4.47%, keeping the inversion with 10-year paper firmly in place and at the widest in over 42 years.
Brent and West Texas Intermediate crude were higher on Monday, with the former climbing back over the $80 level, up almost 2%. This comes after an 8% decline last week for the sector. Natural gas closed modestly higher on the day, after India announced the potential for a 500% increase in domestic natural gas demand. Gold closed higher Monday, while Bitcoin started the week lower, with the cryptocurrency back below the $23,000 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.
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These are the top analyst upgrades, downgrades and initiations seen on Tuesday, February 7, 2023.
Amgen Inc. (NASDAQ: AMGN | AMGN Price Prediction): Oppenheimer reiterated an Outperform rating on the biotech heavyweight. Its $294 target price is well above the $262.39 consensus target. The final trade on Monday was for $243.85 a share.
Archer Daniels Midland Co. (NYSE: ADM): Zacks selected this stock as its Bull of the Day, suggesting that the recent pullback offers an opportunity for value investors interested in the agriculture sector. Shares last closed at $82.56, and the $102.92 consensus price target would be an all-time high.
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Boeing Co. (NYSE: BA): Jefferies reiterated a Buy rating with a $250 target price. The consensus target is $221.57, and Monday’s close was at $206.81.
Church & Dwight Co. Inc. (NYSE: CHD): Atlantic Equities upgraded the shares from Underweight to Neutral with an $80 target. The consensus target is $86.17. The stock closed on Monday at $83.21.
Corsair Gaming Inc. (NASDAQ: CRSR): Wedbush cut its Outperform rating to Neutral with a $17 target. The consensus target is $16.14. Monday’s close at $15.58 was down over 3% for the day on the downgrade and the weak tech tape.
Diageo PLC (NYSE: DEO): As Bernstein upgraded the spirits giant to Outperform from Market Perform, it also raised its $215 target price to $225. The consensus target is just $199.03. The shares closed on Monday at $174.48.
Dow Inc. (NYSE: DOW): Credit Suisse’s upgrade was from Underperform to Outperform with a $68 target price. The $56.82 consensus is also lower than Monday’s $60.08 closing print.
Goosehead Insurance Inc. (NASDAQ: GSHD): Credit Suisse started coverage with an Outperform rating and a $72 price target. The $55.25 consensus target is closer to Monday’s final share price of $45.22.
Landstar Systems Inc. (NASDAQ: LSTR): Raymond James boosted its Market Perform rating to Outperform with a $200 target price. The consensus target is $171.55, and the stock closed on Monday at $183.01.
Lear Corp. (NYSE: LEA): Evercore ISI’s downgraded to In line from Outperform included a target price trim to $145 from $159. The consensus target is $154.19. Monday’s close was at $140.45.
LyondellBasell Industries N.V. (NYSE: LYB): Credit Suisse upgraded the chemical heavyweight to Outperform from Underperform. The firm’s $109 price objective is well above the $88.96 consensus figure. Shares were last seen on Monday trading at $98.78 apiece.
Marriott Vacations Worldwide Corp. (NYSE: VAC): BofA Securities initiated coverage with a Neutral rating and a $180 target price. The consensus target is $182.80. The shares closed on Monday at $159.57.
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Netflix Inc. (NASDAQ: NFLX): Jefferies maintained a Buy rating with a $425 target price. The consensus target is lower at $353.49, and the stock closed on Monday at $361.48.
Pool Corp. (NASDAQ: POOL): Though Stifel downgraded the stock to Hold from Buy, it also bumped its $355 target price up to $360. The consensus target is $359.80. The shares ended trading on Monday at $392.04.
Rexford Industrial Realty Inc. (NASDAQ: REXR): BMO Capital Markets initiated coverage with an Outperform rating and a $77 target price. The consensus target is $68.22. The shares ended Monday’s session at $64.39.
RH (NYSE: RH): Telsey Advisory downgraded the stock to Market Perform from Outperform, but it also lifted its $310 target price to $330. The consensus target is $307.69. The stock closed over 7% lower on Monday at $318.43 in the wake of disappointing results.
Seagen Inc. (NASDAQ: SGEN): SVB Securities downgraded the stock to Market Perform from Outperform. The analyst also lowered the $162 target price to $141, well below the $162.57 consensus target. The shares closed on Monday at $136.
Splunk Inc. (NASDAQ: SPLK): KeyBanc Capital Markets upgraded the stock to Overweight from Sector Weight and has a $130 target price. The consensus target is lower at $111.37. The shares closed on Monday at $103.81.
Spotify Technology S.A. (NYSE: SPOT): Wells Fargo upgraded shares of the music streaming giant to Overweight from Equal Weight. Its $121 price target is now up at $180. The consensus target is $120.99, and the stock closed on Monday at $122.97.
STAG Industrial Inc. (NYSE: STAG): BMO Capital Markets started coverage with an Outperform rating and a $41 target price. The consensus target is $36.59. The shares finished Monday’s session at $36.35.
T-Mobile US Inc. (NASDAQ: TMUS): MoffettNathanson downgraded the stock to Market Perform from Outperform and has a $174 target price. The consensus target is $178.45. The shares closed on Monday at $141.97.
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Vale S.A. (NYSE: VALE): RBC Capital Markets downgraded the stock to Sector Perform from Outperform and trimmed its $16 target price to $15. The consensus target is $18.89. Monday’s close was at $16.96.
Virtus Investment Partners Inc. (NASDAQ: VRTS): Piper Sandler downgraded the stock to Neutral from Overweight and has a $248 target. The consensus target is $199.00. On Monday, shares close over 11% lower at $216.90 despite a solid quarterly report.
Walmart Inc. (NYSE: WMT): Oppenheimer reiterated an Outperform rating with a $160 target price. The consensus target is $161.56. Shares were last seen on Monday trading at $140.68.
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Five top Goldman Sachs Conviction List stock picks have 50% to 75% upside to the firm’s target prices. Growth investors concerned about market and economic uncertainty may want to have these stocks in their portfolios for the rest of the year.
Monday’s top analyst upgrades and downgrades included Bill.com, Boeing, Cardinal Health, Cognizant Technology Solutions, ConocoPhillips, C3.ai, Enphase Energy, Ford, International Paper, Meta Platforms, Nordstrom, Spirit Aerosystems and Upstart.
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