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Monday's Top Analyst Upgrades and Downgrades: Altria, Block, Coinbase, KB Home, Pfizer, PNC Financial, RingCentral, Uber and More
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The futures were higher to start another action-packed trading week. All the major indexes closed higher after a rollercoaster Friday that saw the market open sharply lower, rally back and then close higher. The song remains the same, as worries over the rising cost of credit default swaps for Deutsche Bank was the financial contagion story of the day. Depending on who you listened to, we are either in the middle of a banking crisis or worries are way overblown. This comes as the Federal Reserve’s backstop facility, and the discount window, has been hit to the tune of $345 billion in just two weeks.
Treasury yields were lower again on Friday, as the two-year and 10-year yields fell back to the lowest levels since last September. The former closed at 3.77% while the latter finished the week at 3.38%. The 39-basis-point inversion spread is the tightest between the two securities since last year, but it still indicates recession is on the way.
Brent and West Texas Intermediate crude were down again on Friday, both dropping over 1%. Analysts blamed the decline on the banking issues, while some pointed to the lack of effort by the energy department to refill the Strategic Petroleum Reserve. This failure to refill comes as the U.S. Department of Energy prepares to sell another $26 million barrels with the SPR at the lowest level since 1983.
Natural gas was the only winner in the energy complex on Friday, closing up 3% at $2.22. Gold’s dramatic move higher last week paused on Friday, as the bullion closed modestly lower, after trading back over the $2,000 level early in the session. Bitcoin was hammered Friday, after a big move higher last week, closing down almost 3.5% at $27,377.
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 Monday, March 27, 2023.
Altria Group Inc. (NYSE: MO): Goldman Sachs reiterated an Outperform rating on the company and has a $52 target price. The consensus target is $49.63, and shares closed on Friday at $43.97.
Axonics Inc. (NASDAQ: AXNX): Needham upgraded the stock from Hold to Buy with a $71 target price. The consensus target is up at $82.44, but Friday’s last trade was for $56.04.
Block Inc. (NYSE: SQ): When Atlantic Equities cut its Overweight rating to Neutral, it also reduced its $90 target price to $70. The consensus target is $95.45 for now. The stock closed at $60.68, down 2% on Friday, after being hit hard earlier in the week after short-seller Hindenburg released a scathing report on the company.
Coinbase Global Inc. (NASDAQ: COIN): TD Cowen downgraded the stock to Underperform from Market Perform and has a $36 target price. Note that Friday’s $67.83 closing share price is less than the consensus price target.
Cracker Barrel Old Country Store Inc. (NASDAQ: CBRL): The upgrade at Argus was to Buy from Hold, and the firm’s $126 target price is well above the $106.75 consensus target. Friday’s close was at $112.57.
Crane Holdings Co. (NYSE: CR): UBS downgraded the stock to Neutral from Buy and lowered its $132 price target to $120. The consensus target is $136.80, and shares closed on Friday at $105.69.
Darden Restaurants Inc. (NYSE: DRI): Oppenheimer reiterated an Outperform rating and has a $175 target price. The consensus target is $159.08. The stock closed on Friday at $152.58.
Deere & Co. (NYSE: DE): Zacks has selected this as its Bull of the Day stock, with the analyst suggesting that investors could harvest significant gains over the coming months. Shares last closed at $386.50, and the $471.82 consensus price target would be an all-time high.
First Horizon Corp. (NYSE: FHN): Wells Fargo upgraded the stock to Overweight from Equal Weight and has a $25 target price. The consensus target is $24.86. Friday’s $16.76 close was up over 6% for the day on the positive upgrade.
Five9 Inc. (NASDAQ: FIVN): Rosenblatt initiated coverage with a Buy rating and an $85 target price. The consensus target is $85.65. The shares closed on Friday at $62.83.
Genuine Parts Co. (NYSE: GPC): Truist Financial upgraded the stock to Buy from Hold and has a $186 price objective. The consensus target is $175.56, and shares closed on Friday at $156.88.
24/7 Wall St.Healthcare Service Group Inc. (NASDAQ: HCSG): The Underperform rating at Jefferies is now at Hold, and the analyst boosted the $8.50 price target to $14. The consensus target is $14.42 The shares ended Friday at $12.96, which was up close to 5% for the day, likely on the upgrade.
Hershey Co. (NYSE: HSY): Mizuho reiterated a Neutral rating but lifted its $222 target price to $235. The consensus target is $254.74. The final trade on Friday was for $247.86 a share.
Incyte Corp. (NASDAQ: INCY): The SVB Securities upgrade was from Underperform to Market Perform with a $61 target price. The consensus target is up at $89.19. The shares closed on Friday at $70.23.
KB Home (NYSE: KBH): J.P. Morgan’s $32.50 target price increased to $42.50 as the firm upgraded the stock to Neutral from Underweight. The consensus target is $43.09. The shares ended Friday trading at $40.41, up over 2% for the day. The company posted stellar quarterly results last week.
Legend Biotech Inc. (NASDAQ: LEGN): RBC Capital Markets started coverage with an Outperform rating and a $73 target price. The consensus target is $71.29. The shares closed over 5% higher on Friday at $46.06 due to the positive coverage.
Pfizer Inc. (NYSE: PFE): Citing its disappointing year-to-date performance, Zacks selected this pharmaceutical giant as the Bear of the Day. Shares have traded as high as $56.32 in the past year but closed most recently at $40.39, which is more than 21% lower than at the beginning of the year.
PNC Financial Services Group Inc. (NYSE: PNC): Goldman Sachs cut its $164 target price to $143 but kept a Neutral rating. The consensus target is $172.221. The shares closed on Friday at $124.15.
Regeneron Pharmaceuticals Inc. (NASDAQ: REGN): Jefferies lifted its Hold rating to Buy, and its $675 price target jumped to $925. The consensus target is $846.96. The stock closed on Friday at $820.
RingCentral Inc. (NYSE: RNG): Rosenblatt started coverage with a Buy rating and a $35 target price. The consensus target is way up $50.52, while the most recent close was at $26.86.
Uber Technologies Inc. (NYSE: UBER): Oppenheimer reiterated an Outperform rating and a $55 target price. The consensus target is $47.60. Friday’s closing share price was $30.75.
Vital Farms Inc. (NASDAQ: VITL): Lake Street started coverage with a Buy rating and a $22 target price. The consensus target is $18.83. The shares ended Friday up almost 6% on the day at $14.91 due to the positive initiation.
Vivid Seats Inc. (NASDAQ: SEAT): Imperial Capital initiated coverage with an Outperform rating and a $9 target price. The consensus target is higher at $11.60, but shares ended Friday’s session trading at $7.22.
Zoom Video Communications Inc. (NYSE: ZM): Rosenblatt initiated coverage with a Neutral rating and a $75 target price. The consensus target is $85.10. Friday’s close was at $69.04.
Top Wall Street strategists are stressing that value remains the best place to be until the final bottom for the bear market is seen. See seven top dividend-paying value stocks that should hold up well for the rest of 2023.
Friday’s top analyst upgrades and downgrades included AMC Entertainment, APA, Chewy, Coterra Energy, Dynatrace, FirstSolar, Marathon Oil, Match, Meta Platforms, Ovintiv, Pioneer Natural Resources, Samsara, SL Green Realty and Toast.
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