The futures were trading lower after a grim day across Wall Street that saw all the major indexes finish lower on the day. As expected, the Federal Reserve held rates steady, which kept federal funds at 5.25% to 5.50% until at least November. While that issue has been sidelined for a couple of months, the ongoing UAW strike, the potential for some stiff consumer headwinds and seasonality are all front and center for investors, as the big tech stocks that have driven the rally this year are starting to see some selling after big moves higher.

Treasury yields were higher across the curve, and the recent selling has pushed many maturities to highs not seen in years. The sellers were focused on maturities from the two-year, which closed at 5.18%, up to the benchmark 10-year note, which finished the session at 4.41%, the highest since 2007. While the inversion between the two still indicates a recession is on the way, it is likely a 2024 event now.

Brent and West Texas Intermediate crude both took a breather Wednesday, after a strong move higher over the past 10 days. Another large inventory draw somewhat kept the recent bid in place however, as Brent finished the day down 0.81% at $93.53, while WTI closed down 1% at $90.28. Natural gas also finished the day lower, down almost 4% at $2.73.

Gold closed lower on the day, with the December contract closing down 0.12% at $1,951.30. Top strategists cited the rising U.S. debt as a factor (it was announced the United States had reached a $33.04 trillion in outstanding debt). That number reflects a stunning 50% increase in federal spending between fiscal 2019 and fiscal 2021 contributed to the debt topping the $33 trillion level. Bitcoin closed modestly lower on the day at $27,123.90.

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 Thursday, September 21, 2023.

Azul S.A. (NYSE: AZUL): Goldman Sachs upgraded the stock to Buy from Neutral and raised the target price to $18.30 from $14.90. The consensus target is $15.90. The stock was last seen on Wednesday trading at $9.25, up almost 12% on the day after the upgrade and positive analysts’ comments.

Bausch Health Companies Inc. (NYSE: BHC): Jefferies upgraded the stock to Buy from Hold and lifted its $9 target price to $16. The consensus target is $8.50. Wednesday’s close at $8.34 was up almost 8% after the upgrade and the news the CFO had resigned.

CBOE Global Markets Inc. (CBOE): Oppenheimer reiterated an Outperform rating and a $162 target price. The consensus target is $157.38. The shares closed on Wednesday at $155.13.

Constellation Brands Inc. (NYSE: STZ): J.P. Morgan reiterated an Overweight rating on the stock and lifted its target price to $307 from $276. That compares with a consensus target of $289.79 and Wednesday’s closing print of $261.90.

CoStar Group Inc. (NASDAQ: CSGP): JMP Securities resumed coverage with a Market Outperform rating and a $100 target, The consensus target is $97.92. The shares closed on Wednesday at $81.13.

Domino’s Pizza Inc. (NYSE: DPZ): Jefferies reiterated a Hold rating, and its price objective is $380. This compares with the higher $417.85 consensus target price and Wednesday’s closing trade of $388.84.
International Business Machines Corp. (NYSE: IBM): RBC Capital Markets initiated coverage with an Outperform rating, and its price target is $188. The consensus target is just $143.00. The shares closed on Wednesday at $149.83.

Kimco Realty Corp. (NYSE: KIM): Wells Fargo upgraded the shares to Equal Weight from Underweight, and its target price is $20. The consensus target is $22.51. The final trade for Wednesday was reported at $18.45.

Louisiana-Pacific Corp. (NYSE: LPX): TD Securities raised its Hold rating to Buy and has a $78 target price. The consensus target is $76, and Wednesday’s closing print was $57.62.

Lululemon Athletica Inc. (NASDAQ: LULU): Needham started coverage with a Buy rating and a $470 target price. The consensus target is just $435.71. The stock finished Wednesday’s session at $391.88.

nCino Inc. (NASDAQ: NCNO): Morgan Stanley downgraded the shares to Underweight from Equal Weight and has a $24 price target. The consensus target is $32.50. The stock closed on Wednesday at $32.07.

Pinterest Inc. (NYSE: PINS): Citigroup raised its Neutral rating to Buy and its $31 target price to $36. The consensus target is $32.08. The stock closed over 3% higher on Wednesday at $27.02 after multiple upgrades and positive comments from the CEO.

Regency Centers Corp. (NASDAQ: REG): Argus upgraded the shares to Buy from Hold and has set a $70 target price. The consensus target is $69.71. Wednesday’s close was at $62.47.

Skyworks Solutions Inc. (NASDAQ: SWKS): The Outperform rating at Exane BNP Paribas dropped to Neutral, and the firm has a $110 target price. The $120.72 consensus target is higher, but Wednesday’s closing print was $96.33.

Veeva Systems Inc. (NYSE: VEEV): Oppenheimer reiterated an Outperform rating and has a $225 target price. The consensus target is $224.36.Wednesday’s closing share price was $209.49.

Ventas Corp. (NYSE: VTR): As Raymond James downgraded the stock to Outperform from Strong Buy, its $55 target price slipped to $53. The consensus target is $51.41. The last trade on Wednesday came in at $43.98.

Walt Disney Co. (NYSE: DIS): BofA Securities reiterated a Buy rating but cut its target price to $110 from $135. The consensus target is $106.28. The stock closed on Wednesday at $82.56.

Western Digital Corp. (NASDAQ: WDC): The Exane BNP Paribas upgrade was from Neutral to Outperform with a $58 target price. The consensus target is $45.95. Wednesday’s $45.65 close was up almost 4% on the day due to the upgrade.

Wingstop Inc. (NASDAQ: WING): As Wedbush upgraded the stock to Outperform from Neutral, its target price rose to $200 from $180. The consensus target is $199.18. Wednesday’s close was at $175.46.

Zebra Technologies Corp. (NASDAQ: ZBRA): Morgan Stanley downgraded the shares to Underweight from Equal Weight, The analyst also reduced the $276 target price to $220, well below the $305 consensus target. The stock closed on Wednesday at $235.83.

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Five top blue chip stocks have struggled this year for a variety of reasons, but their value and total return proposition offer investors who are more conservative some quality ideas for the rest of this year and in 2024.

Wednesday’s top analyst upgrades and downgrades included Arm, Carnival, CVS Health, Deere, Dell Technologies, Intercontinental Exchange, Planet Fitness, Rackspace Technology, Royal Caribbean Cruises, SoFi Technologies, Southwest Airlines, Starbucks and Super Micro Computer.

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