The futures were positive, following a very solid day across Wall Street in which all the major indexes finished higher. The Nasdaq printed its best close since August 25 of last year. Some positive commentary on the debt ceiling negotiations was cited as one of the big reasons for the strength Wednesday. Speaker McCarthy was reported to have said there is a chance that a deal could be worked out as soon as Friday. Plus, both he and President Biden conceded that a default is not an option. Some positives were noted in the regional banking space as well. Western Alliance Bancorp. said deposits had increased by $2 billion since the end of the first quarter.

Treasury yields were slightly higher across the curve on Wednesday, with some bigger selling coming in on the short end, while longer-dated maturities were flat to modestly higher. Again, bond traders are also closely watching the debt ceiling negotiations for any progress in front of the June 1 deadline established by the Treasury Secretary. The 10-year note finished the day at 3.58%, while the two-year paper yield jumped up nine basis points to close at 4.16%.

Brent and West Texas Intermediate crude both exploded higher Wednesday, closing up 2.78% and 2.50%, respectively. The two benchmarks have traded in a tight range so far in 2023, but many across the energy complex expect continued drawdowns in U.S. inventories, and the International Energy Agency’s strong outlook for second-half 2023 demand gave oil markets a tailwind to trade higher Wednesday. Natural gas finished the day flat at $2.37.

Gold was lower for the third session in a row this week, as profit-taking continued on Wednesday. The bullion finished the day at $1,985. Bitcoin had a winning day for the first time this week, closing up 1.1% at $27,362.

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 Thursday, May 18, 2023.

Analog Devices Inc. (NASDAQ: ADI): Oppenheimer reiterated an Outperform rating with a $230 target price. The consensus target is $26.17, and shares ended Wednesday’s trading at $20.38, up just shy of 5% on the day.

APi Group Corp. (NYSE: APG): Baird raised its Neutral rating to Outperform and its $27 target price up to $29. The consensus target is $28.22. The stock closed over 4% higher on Wednesday at $23.28 after the upgrade.

AppLovin Corp. (NASDAQ: APP): As BofA Securities upgraded the stock to Buy from Neutral, its $21 price target increased to $27, above the consensus target of $23.79. Wednesday’s close at $24.38 was up close to 7% for the day on the upgrade.
BioNTech S.E. (NASDAQ: BNTX): Redburn’s upgrade to Buy from Neutral came with a target price boost to $170 from $165. The consensus target is $175.18. The shares ended Wednesday at $105.15.

Disc Medicine Opco Inc. (NASDAQ: IRON): BMO Raymond James initiated coverage with an Outperform rating and a $50 target price. That compares with the $40.75 consensus target and Wednesday’s closing print of $34.05.

Goodyear Tire & Rubber Co. (NASDAQ: GT): Nomura downgraded the stock to Neutral from Buy and has a $17 price target. The consensus target is $14.17, and shares closed on Wednesday at $14.70.

Home Depot Inc. (NYSE: HD): Although Telsey Advisory reiterated a Buy rating, it cut its $340 target price to $315. The consensus target is $320.38. Wednesday’s $292.39 close was up over 3% on the day after posting disappointing results on Tuesday, while receiving glowing commentary across Wall Street.

HubSpot Inc. (NYSE: HUBS): Goldman Sachs raised its $486 target price on the Buy-rated stock to $536. The consensus target is $479.96, but shares closed on Wednesday at $485.25.

iQIYI Inc. (NASDAQ: IQ): Credit Suisse’s upgrade was from Neutral to Outperform with an $8 target price. The consensus target is $8.22. Wednesday’s close was at $5.45.

Knight-Swift Transportation Holdings Inc. (NYSE: KNX): The Outperform rating at Credit Suisse dropped to Neutral, and the analyst trimmed the $63 target price to $60. The consensus target is $65.42. The stock closed on Wednesday at $55.75.

Kohl’s Corp. (NYSE: KSS): Goldman Sachs lowered its $24 price target on the Sell-rated stock to $21. The consensus target is $26.17. Wednesday’s close at $20.38 was up almost 5% for the day.

Lowe’s Companies Inc. (NYSE: LOW): Telsey Advisory reiterated an Outperform rating but reduced its $235 target price to $225. The consensus target is $228.17. The stock closed on Wednesday at $207.20, up 4% for the day. The company is expected to report quarterly results next week.

Madison Square Garden Entertainment Corp. (NYSE: MSGE): Guggenheim initiated coverage with a Buy rating and a $37 target price. The consensus target is way up at $73.33. Wednesday’s close was at $31.73.

Magellan Midstream Partners L.P. (NYSE: MMP): Though Citigroup downgraded the stock to Neutral from Buy, it also raised its target price to $63 from $57. The consensus target is $60.41. The shares closed on Wednesday at $62.02. The company recently signed an $18.8 billion merger agreement with ONEOK.

Marriott International Inc. (NASDAQ: MAR): Travel is back in a big way and its Bull of the Day is cashing in, says Zacks. The stock last closed at $177.11 a share, and the $188.00 consensus price target would be an all-time high.
Norfolk Southern Corp. (NYSE: NSC): Evercore ISI’s upgrade was to Outperform from In Line, and the firm has a $242 target price. The consensus target is $234.57. On Wednesday, the closing share price was $214.98.

NorthWestern Corp. (NYSE: NWE): Ladenburg Thalmann initiated coverage with a Neutral rating and a $57.50 target price. The consensus target is $58.67. The stock closed on Wednesday at $58.36.

Nutrien Ltd. (NYSE: NTR): Berenberg downgraded the shares from Buy to Hold with a $90 target price. The consensus target is $87.85. The stock closed on Wednesday at $61.10.

Old Dominion Freight Line Inc. (NASDAQ: ODFL): Evercore ISI upgraded the stock to Outperform from In Line. Its $350 target price compares with a $325.67 consensus target and Wednesday’s close at $303.76.

ServiceNow Inc. (NYSE: NOW): Oppenheimer reiterated an Outperform rating with a $500 target price. The consensus target is up at $539.39. The last trade on Wednesday was for $492.92 a share.

Tencent Music Entertainment Group (NYSE: TME): Citigroup raised its Neutral rating to Buy, and its $9.50 target price is in line with the $9.48 consensus figure. The stock closed almost 9% higher on Wednesday at $8.31 after a solid quarterly report.

Visteon Corp. (NYSE: VC): Guggenheim upgraded the stock to Buy from Neutral, but its $161 target price is less than the $170.82 consensus. Wednesday’s final trade was for $139.88 a share.

Werner Enterprises Inc. (NASDAQ: WERN): Credit Suisse cut its Outperform rating to Neutral and reduced its $52 price target to $48. The consensus target is $51.06. Wednesday’s close was at $44.77.

Wynn Resorts Ltd. (NASDAQ: WYNN): The Barclays upgrade to Overweight from Equal Weight included a target price hike to $135 from $120. The consensus target is lower at $126.96, for now. The stock closed on Wednesday at $108.92, up almost 6% on the day due to the upgrade and positive comments on its Macau operations.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

While some tech giants that have led the charge this year may be overbought, these four outstanding Goldman Sachs tech stock picks look poised to lead the next leg higher and offer aggressive growth investors solid upside potential.

See why the tech giants may have already won the AI race.

And see which 25 American industries are dying.

Wednesday’s top analyst upgrades and downgrades included Amgen, Canadian Pacific Kansas City, Carvana, Coinbase Global, Etsy, First Horizon, GE Healthcare Technologies, Gilead Sciences, Home Depot, Mosaic, Royal Caribbean Cruises, Vornado Realty Trust, Warner Bros. Discovery, Williams Companies and XP.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.