The futures traded lower after attempts to carry over the massive Friday rally fell somewhat short to start the week. The major indexes closed mixed on Monday, with the Nasdaq closing up at an eight-month high at 12,256.
Investors will now turn their attention to the consumer price index report for April, which will be released early Wednesday. Wall Street economists are predicting a 0.3% month-over-month increase in inflation and a 5.5% year-over-year gain. Continued high inflation numbers, combined with the strong nonfarm-payroll print from last Friday, will push expectations up for yet another 25-basis-point increase in the federal funds rate when the Federal Open Market Committee meets June 13 and 14.
Treasury yields moved higher across the curve Monday, following up on the big selling in the Treasury complex last Friday. Bond traders will be closely watching the inflation numbers, in addition to hearing the results of the expected meeting Tuesday between President Biden and Speaker McCarthy and Senate leadership to address the impending debt ceiling limit crisis. The government is expected to run out of money on June 1. The benchmark 10-year note closed at 3.52%, while the two-year closed at 4%, keeping their inversion in place.
Brent and West Texas Intermediate (WTI) crude followed through on Friday with strong gains, both closing up well over 2%, which, while solid, did not cover last week’s 7% drop. Top analysts chalked up the strength in crude Monday to the lowest pricing since the fourth quarter of 2021 and the fact that oil has traded down for three straight weeks. WTI finished the day at $73.16, while Brent closed at $76.62. Goldman Sachs sees Brent at $95 by the end of 2023 and $100 in 2024. Natural gas had a strong day as well, closing up almost 5% at $2.24.
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Gold was lower on Monday as the bullion closed modestly lower at $2,028. Bitcoin was the big loser, closing down over 3.5% at $27,468, after it was reported that Binance halted crypto trading for a few hours.
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 9, 2023.
Albemarle Corp. (NYSE: ALB | ALB Price Prediction): BofA Securities upgraded the stock to Neutral from Underperform. It also raised its $195 price target to $200. The consensus target is up at $264. The stock closed on Monday at $185.88, which was up almost 4% for the day.
Alcoa Corp. (NYSE: AA): J.P. Morgan started coverage with an Overweight rating and a $54 target price. The consensus target is $49.78, and shares closed most recently at $36.82.
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American Airlines Group Inc. (NASDAQ: AAL): J.P. Morgan’s upgrade to Overweight from Neutral included a price target bump to $29 from $26. The consensus target is just $16.85. Monday’s $14.36 close was up almost 4% for the day after the upgrade.
Americold Realty Trust Inc. (NYSE: COLD): RBC Capital Markets upgraded the stock to Outperform from Sector Perform. Its target price increased to $36 from $33 as well. The consensus target is $34.50. The stock closed on Monday at $30.53.
Chart Industries Inc. (NYSE: GTLS): C.L. King started coverage with a Buy rating. Its $165 target price is much less than the $191.81 consensus target, but Monday’s close was at $127.48.
Cogent Communications Holdings Inc. (NASDAQ: CCOI): J.P. Morgan downgraded the stock to Neutral from Overweight and trimmed its $72 target to $70, the same as the consensus target. The shares closed on Monday at $65.29, down over 2% for the day.
Coinbase Global Inc. (NASDAQ: COIN): As Daiwa Securities upgraded the stock to Buy from Neutral, its $58 target price rose to $65, shy of the consensus target near $70. The stock closed on Monday at $58.10.
DraftKings Inc. (NASDAQ: DKNG): Roth MKM reiterated a Sell rating but lifted its $15 target price to $18. The consensus target is $26.39. The shares closed at $24.18 on Monday.
Dropbox Inc. (NASDAQ: DBX): The Goldman Sachs upgrade was to Neutral from Sell. Its $22 target price crept up to $25, while the consensus target is $26.35. The shares closed on Monday at $21.42.
Fortinet Inc. (NASDAQ: FTNT): BofA Securities raised its Neutral rating to Buy with an $80 target price. The consensus target is $73.67. Monday’s final trade was for $66.08 a share.
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Frontier Group Holdings Inc. (NASDAQ: ULCC): The Overweight rating at Jefferies dropped to Neutral, and the $18 target price is now $12. That compares with a $15.94 consensus target and Monday’s close at $8.10.
MasTec Inc. (NYSE: MTZ): Craig Hallum’s upgrade to Buy from Hold included a target price hike to $113 from $97. The consensus target is $115.55. Monday’s close was at $88.06.
MedPace Holdings Inc. (NASDAQ: MEDP): Guggenheim upgraded the shares to Buy from Neutral. Its $252 target price is well above the $215.67 consensus figure. The stock ended Monday trading at $209.52.
Monster Beverage Corp. (NASDAQ: MNST): Roth MKM maintained a Neutral rating but bumped the $50 target price up to $55. The consensus target is $59.40. Monday’s close was at $59.04.
Peloton Interactive Inc. (NASDAQ: PTON): BMO Capital Markets upgraded the shares from Underperform to Market Perform with a $9.50 target price. The consensus target is $12.41. Monday’s $8.09 was up over 3% on the day.
Pentair PLC (NYSE: PNR): UBS’s upgrade to Buy from Neutral came with a target price boost to $72 from $53. The consensus target is $62.15. The stock was last seen on Monday trading at $58.56.
Qualys Inc. (NASDAQ: QLYS): Wolfe Research downgraded the stock to Underperform from Peer Perform and has a $100 price objective. The consensus target is $129.40. Monday’s close was at $115.31.
Scotts Miracle-Gro Co. (NYSE: SMG): J.P. Morgan upgraded the stock to Overweight from Neutral. Its $80 target price compares with a $77 consensus target. Monday’s $72.58 close was up over 9% on the day after the upgrade and an earnings beat.
Shake Shack Inc. (NYSE: SHAK): UBS reiterated a Neutral rating but lifted its $62 target price to $66. The consensus target is $63.06. The shares closed on Monday at $66.92, up 2% on the day.
Snowflake Inc. (NYSE: SNOW): Stifel upgraded the company to Buy from Hold and boosted the target price to $185 from $145. The consensus target is $182.16. Monday’s $160.42 close up close to 4% for the day.
Southwest Airlines Co. (NYSE: LUV): As J.P. Morgan cut its Overweight rating to Neutral, the $64 target price tumbled to $39. The consensus target is $42.08. The last trade Monday was for $29.59 a share.
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Walt Disney Co. (NYSE: DIS): Morgan Stanley reiterated an Overweight rating and raised the $115 target price to $120. The consensus target is $112.16. The stock closed at $102.97 on Monday.
Workday Inc. (NASDAQ: WDAY): When Stifel downgraded the stock to Hold from Buy, it trimmed its $210 target price to $200. That compares with a $212.25 consensus target and Monday’s close was at $179.60.
XPO Inc. (NYSE: XPO): BofA Securities raised its Underperform rating to Neutral and its target price to $50 from $33. The consensus target is $51.05. The stock closed at $48.44 on Monday.
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A Goldman Sachs research report finds that the biggest players in the banking industry are in much better shape than their smaller brethren. Shares of four financial giants still offer outstanding entry points and could be ready to run much higher later this year.
Walt Disney has a lot on its plate ahead of its earnings report.
Monday’s top analyst upgrades and downgrades included Apple, Atlassian, Block, CF Industries, Comerica, DraftKings, Exact Sciences, Global Payments, Kellogg, Mobileye Global, Shopify, VFC and Zions Bancorp.
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