The futures were trading modestly higher after another strong trading day to start off the week. All the major indexes finished the day in the green, as all the attention turns to the Federal Reserve’s two-day meeting, which likely will end tomorrow with yet another 25-basis-point increase in the federal funds rate. Barring a reignition of the inflation rate, which has fallen from 9.1% last summer to 3.0% now, many economists and Wall Street strategists feel that after 16 long months, this interest rate increase cycle could be over.

Treasury yields were higher across the curve Monday, as sellers of the safe-haven government debt closed positions in front of the Federal Reserve meeting. It is quite possible if Fed Chair Powell indicates that rate hikes are over, that there could be a substantial rally in some of the longer-dated maturities, which have traded at or below the 4% level for years. There is a contingent on Wall Street that feels a September rate hike could remain on the table.

Brent and West Texas Intermediate crude both surged another 2% higher on Monday, after the two benchmarks closed over 2% higher on Friday to complete the fourth straight week of gains for the black gold. Traders cited continued demand strength, the Saudi production cuts that were extended through August, and the possibility of more China economic stimulus as positives for the sector. Natural gas finished flat Monday at $2.69.

Gold pushed lower on Monday, as traders are keeping a close eye on the Federal Reserve meeting and will closely scrutinize the statement that will accompany the decision on Wednesday. Bitcoin took a beating on Monday, falling over 3% to close at $29,115. A huge levered futures trade was cited as one reason for the sell-off.

24/7 Wall St. reviews dozens of analyst research reports each weekday 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, July 25, 2023.

American Express Co. (NYSE: AXP): Piper Sandler downgraded the stock to Underweight from Neutral and lowered its $172 target price to $149. The consensus target is higher at $185.74. The stock closed on Monday at $167.75.

Apple Inc. (NASDAQ: AAPL): Deutsche Bank reiterated a Buy on the tech superstar and raised the $180 target price to $210. The consensus target is $191.16, and shares closed on Monday at $192.75.

AppLovin Corp. (NASDAQ: APP): BTIG Research raised its Neutral rating to Buy with a $34 target price. The consensus target is $26.08. The stock closed on Monday at $28.15.
Argenx S.E. (NASDAQ: ARGX): UBS downgraded the shares to Neutral from Buy but raised their target price to $570 from $480. The consensus target is $533.35. The final trade on Monday was for $521.49 a share.

Becton Dickinson and Co. (NYSE: BDX): The Raymond James upgrade was from Market Perform to Outperform with a $305 target price. The consensus target is $286.92, and Monday’s close at $279.97 was up almost 6% for the day on the upgrade.

Biogen Inc. (NASDAQ: BIIB): Though UBS reiterated a Buy rating, the analyst trimmed the $346 target price to $335, in line with the $335.48. consensus target. Monday’s closing print was $277.00.

Black Knight Inc. (NYSE: BKI): Stephens downgraded the stock to Equal Weight from Overweight but bumped the $72 price target to $75. The consensus target is $68.40. The last trade on Monday came in at $70.81.

Conagra Brands Inc. (NYSE: CAG): Its Bear of the Day stock still faces inflation woes, says Zacks. Shares have traded as high as $41.30 in the past year but closed most recently at $33.26. That is down about 14% year to date.

D.R. Horton Inc. (NYSE: DHI): Raymond James upgraded the homebuilder to Outperform from Market Perform and has a $160 target price. The consensus target is $138.19. The stock closed on Monday at $130.03.

Equifax Inc. (NYSE: EFX): BofA Securities downgraded the shares from Neutral to Underperform and slashed the $255 target price to $195. The consensus target is up at $231.37 for now. The stock closed on Monday at $206.55.

Estee Lauder Companies Inc. (NYSE: EL): When Piper Sandler downgraded the shares to Neutral from Overweight, the $265 target price dropped to $195. The $235.20 consensus target is also higher than Monday’s closing print of $177.02.

Juniper Networks Inc. (NYSE: JNPR): The Raymond James downgrade to Outperform from Strong Buy included a target price trim to $38 from $37. The consensus target is $36.24. The shares closed on Monday at $29.38.

Lam Research Corp. (NASDAQ: LRCX): Stifel boosted its Hold rating to Buy and its target price to $725 from $505. The consensus target is $592.95. Monday’s close was at $639.03.

Livent Corp. (NYSE: LTHM): Zacks has selected this lithium producer as its Bull of the Day stock. Shares last closed at $24.95, and the consensus price target of $32.94 represents about 32% upside potential.

Microsoft Corp. (NASDAQ: MSFT): Goldman Sachs reiterated a Buy rating and lifted its target price to $400 from $350. The consensus target is $191.16. Monday’s close was at $345.11.

Netflix Inc. (NASDAQ: NFLX): Baird upgraded the shares to an Outperform rating from Neutral and raised its $340 target price all the way to $500. The consensus target is $454.22. The shares closed at $428.37 on Monday.

Neurocrine Biosciences Inc. (NASDAQ: NBIX): The SVB Securities upgrade to Outperform from Market Perform included a target price hike to $125 from $115. That compares with the $123.30 consensus target and Monday’s closing price of $100.02 a share.

Nvidia Corp. (NASDAQ: NVDA): Mizuho reiterated a Buy rating and boosted its target price to $530 from $400. The consensus target is $491.50. On Monday, the closing share price was $446.12.

Q2 Holdings Inc. (NYSE: QTWO): Baird upgraded the shares to Outperform from Neutral. It also boosted its $30 target price to $39, above the consensus target of $30.79. The shares closed at $34.46 on Monday, up close to 6% for the day due to the upgrade.

Shopify Inc. (NYSE: SHOP): MoffettNathanson upgraded the stock to Outperform from Market Perform and has a $76 target price. The consensus price target is $62.55, and shares closed on Monday at $66.18.

Tesla Inc. (NASDAQ: TSLA): Though UBS cut its Buy rating to Neutral, the firm raised its target price to $270 from $220. The consensus target is $227.44, but the stock closed on Monday at $269.06.

Twilio Inc. (NYSE: TWLO): The RBC Capital Markets downgrade was to Underperform from Sector Perform. Its $55 target price dropped to $50 as well. The consensus price target is $67.45, and Monday’s close was at $61.32.

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Monday’s top analyst upgrades and downgrades included Activision Blizzard, Alphabet, Blackstone, Carvana, Discover Financial Services, Harley-Davidson, Knight-Swift Transportation, Live Nation Entertainment, McDonald’s, Microsoft, SL Green Realty, Sunnova Energy and Texas Instruments.

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