The futures were trading lower after a bumpy start to the trading week that saw all the major indexes finish the day lower. The failure of First Republic Bank and the sale of assets to JPMorgan was the big story on Monday, as S&P 500 earnings continued to roll in for the first quarter. Those earnings have so far come in largely better than expected. Note though that Wall Street analysts lowered the earnings bar in a big way prior to the reporting.

All eyes are now turning to the Federal Reserve meeting this week. Once again, it is expected that federal funds rate will be raised 25 basis points for the 10th straight hike over the past year. Some feel this could be the final increase, while others lean toward one more hike in June.

Treasury yields jumped higher across the curve, as bond market participants also will be watching and listening to commentary from the Fed. The 10-year note closed at 3.55% on Monday, while the two-year paper finished the day at 4.12%. The continuing inversion suggests recession is on the way.

Brent and West Texas Intermediate crude both started the weak lower, following through on last week’s nearly 1.5% decline. The selling was prompted in part by the pending rate increase and weaker-than-expected economic data out of China. While the energy complex has given back most of the gains since the OPEC production cuts, analysts expect the group to keep a lid on production, and higher prices could be forthcoming. Natural gas closed down 4% at $2.31.

Gold started off the week lower, closing down almost 0.5% at $1,989.70, while Bitcoin was the big loser on the day, closing down a stunning 4.65% at $27,889.

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, May 2, 2023.

Apple Inc. (NASDAQ: AAPL): BofA Securities reiterated a Neutral rating and lifted its $168 target price to $173. The consensus target is $170.89. The final trade on Monday was for $169.59 a share.

Baidu Inc. (NASDAQ: BIDU): Bernstein upgraded the stock to Outperform from Market Perform and has set a $160 target price. The consensus target is $180.66, and shares closed on Monday at $121.28.

Biogen Inc. (NASDAQ: BIIB): Guggenheim upgraded the stock to Buy from Neutral and lifted the target price to $350 from $270. The consensus target is $325.04. The shares closed on Monday at $311.11.
Braze Inc. (NASDAQ: BRZE): As Oppenheimer reiterated an Outperform rating, it raised its $36 target price to $38. The consensus target is $40.77, and the stock closed on Monday at $29.42.

Check Point Software Technologies Ltd. (NASDAQ: CHKP): The BMO Capital Markets downgrade was to Market Perform from Outperform, and the $140 target price fell to $133. The consensus target is $139.40 for now. The stock closed down almost 7% on Monday at $118.52 despite a solid first-quarter report.

Comcast Corp. (NASDAQ: CMCSA): BofA Securities raised its Neutral rating to Buy from and its $35 price target to $45. The consensus target is $43.97. The stock closed on Monday at $41.64.

Danaher Corp. (NYSE: DHR): SVB Securities started coverage with an Outperform rating and a $300 target price. The consensus target is $282.30. Shares closed on Monday at $241.72.

Doximity Inc. (NYSE: DOCS): Wells Fargo’s downgrade to Equal Weight from Overweight included a target price trim to $35 from $37. The consensus target is $37.86. Monday’s close at $35.83 was down almost 3% for the day on the downgrade.

Essex Property Trust Inc. (NYSE: ESS): Piper Sandler upgraded the stock to Overweight from Neutral. It also raised its $242 price target to $271, well above the $235.05 consensus target. The stock closed on Monday at $220.68.

Estee Lauder Companies Inc. (NYSE: EL): Oppenheimer’s $290 target price increased to $300 as the analyst reiterated an Outperform rating. The $289.85 consensus target is closer to Monday’s closing print of $246.87.

Exxon Mobil Corp. (NYSE: XOM): Goldman Sachs downgraded the energy leader from Buy to Neutral with a $125 target price. That compares with the $128.96 consensus target and Monday’s close at $114.67, which was down 3% on the day after the downgrade.

General Motors Co. (NYSE: GM): When Morgan Stanley upgraded the shares to Overweight from Equal Weight, it bumped its $35 target price up to $38. The consensus target is higher at $47.70. Monday’s close was at $33.47.

Hub Group Inc. (NASDAQ: HUBG): Stifel lowered its $110 target price on the Buy-rated shares to $94. The consensus target is $98.62, but the most recent close was at $76.16.

Logitech International S.A. (NASDAQ: LOGI): Morgan Stanley’s upgrade to Equal Weight from Underweight came with a target price hike to $56 from $40. The consensus target is $55.17. Monday’s close was at $60.98.

Nextracker Inc. (NASDAQ: NXT): Northland Securities started coverage with a Market Perform rating and a $32 target price. The consensus target is $39.38. The stock closed on Monday at $30.87.

O’Reilly Automotive Inc. (NASDAQ: ORLY) Oppenheimer raised its $890 target price on the Outperform-rated shares to $1,000. The consensus target is $964.70. The stock closed on Monday at $929.60.
Otis Worldwide Corp. (NYSE: OTIS): Wells Fargo’s upgrade was to Equal Weight from Underweight, and its $75 target price is now $88. The consensus target is $86.41. The shares ended Monday at $85.96.

Playtika Inc. (NASDAQ: PLTK): Citigroup resumed coverage with a Neutral rating and an $11 price target. The consensus target is $14.19. Monday’s $10.35 close was up almost 4% for the day.

Power Integrations Inc. (NASDAQ: POWI): The Market Perform rating at Northland Capital is now Outperform, and the analyst boosted the $66 target price to $82. The consensus target is $85.17. The last trade Monday came in at $74.96, which was up 3% for the day on the upgrade.

Principal Financial Group Inc. (NASDAQ: PFG): The BofA Securities downgrade was to Neutral from Buy, and its target price dropped to $78 from $81. The consensus target is $76.15. Monday’s close was at $73.98.

Scotts Miracle-Gro Co. (NYSE: SMG): Stifel upgraded the shares to Buy from Hold. It also raised its $65 target price to $80, just shy of the $80.29 consensus target. Monday’s $70.48 close was up over 5% on the day after the upgrade.

Teradata Corp. (NYSE: TDC): Guggenheim raised its Neutral rating to Buy with a $62 price target. The consensus target is $46.39. Monday’s close at $41.03 was up 6% for the day on the upgrade.

Tractor Supply Co. (NASDAQ: TSCO): Oppenheimer’s $270 target price rose to $280 and the Outperform rating remained. The consensus target is $253.80. Monday’s close was at $238.95.

Zillow Inc. (NYSE: ZG): The upgrade at Bernstein was to Market Perform from Underperform, and it boosted its target price to $45 from $35. The consensus target is $49.95. Monday’s close was at $43.25.

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Four top companies are Wall Street favorites and are expected to raise their dividends this week, showing that each company is doing well and has the earnings and cash flow strength to increase its payout despite rising interest rates, inflation and economic uncertainty.

Monday’s top analyst upgrades and downgrades included Amazon.com, Bluebird Bio, Carnival, Fortinet, General Motors, Gilead Sciences, Hasbro, Hershey, Intel, International Paper, Masco, Mobileye Global, Salesforce, Snap and Waste Management.

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