The futures traded higher as another busy week gets ready to open. It will feature a tsunami of third-quarter earnings results. The Dow Jones industrials finished Friday modestly higher at 33,670.29, while the other major indexes retreated. The same headwinds remain front and center. Climbing interest rates, disappointing Treasury auctions and the reemergence of inflation pressures have kept a lid on many stocks. Huge big-bank earnings were an early positive catalyst on Friday, but that spark faded fast.

Buyers returned to the safe-haven sovereign debt, and Treasury yields, especially on the longer-dated maturities, plunged lower. The 10-year note closed the day with the yield down 10 basis points at 4.63%, while the two-year paper finished the session at 5.06%. The inversion between the two has narrowed. Yet, being in place for over a year, it still suggests a recession is possible.

Brent and West Texas Intermediate both exploded higher on Friday after the United States signaled stricter sanctions enforcement on Russian exports and Iran. Prices had jumped earlier in the week due to the Hamas-Israel war but had backed up midweek on rising inventory concerns. Both of the benchmarks closed up over 5%, with Brent finishing the day at $90.93 and WTI closing at $87.70. Furthermore, natural gas finished out a solid week by closing almost 4% lower on Friday at $3.23 as profit takers moved in.

Gold also soared higher on Friday, as investors looking for an additional safe haven pushed prices up 3.13%. The threat by Israel to invade Gaza was seen as the biggest catalyst for the bullion’s strength. The December contract closed at $1,942. In addition, Bitcoin closed flat at $26,751 to end a dreadful week for the cryptocurrency giant.

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 Monday, October 16, 2023.

Upgrades

Applied Materials Inc. (NASDAQ: AMAT): Needham upgraded the stock to Buy from Hold and has a $180 target price. The consensus target is lower at $154.59. The last trade for Friday was reported at $141.14 per share.

Dollar General Corp. (NYSE: DG): Gordon Haskett upgraded its Hold rating to Buy. Yet, its $140 target price is less than the consensus target of $146.92. The stock closed over 9% higher on Friday at $111.16. The company announced last week that former CEO Todd Vasos will be returning.

Hecla Mining Co. (NYSE: HL): When Roth MKM upgraded the stock to Buy from Neutral, its $4 target price increased to $4.40. The consensus target is up at $6.20 though. Friday’s $4.14 close was almost 14% higher for the day, after the upgrade and with spot gold prices soaring.

Kilroy Realty Corp. (NYSE: KRC): Jefferies boosted its Hold rating to Buy and its $34 target price to $45. The consensus target is $40.33. Friday’s close was at $29.90.

Lam Research Corp. (NASDAQ: LRCX): Needham’s upgrade was from Hold to Buy with an $800 target price. The consensus target is just $674.69. Friday’s close was at $645.12.

Mister Car Wash Inc. (NYSE: MCW): The Neutral rating at Baird was bumped up to Outperform. The firm’s $10 target price is in line with the consensus target of $10.05. The stock closed 6% higher on Friday at $5.63 due to the upgrade.

Oshkosh Corp. (NYSE: OSK): Citigroup upgraded the shares to Buy from Neutral. Its $110 price target rose to $115, well above the $109.77 consensus target and Friday’s close at $93.65.

Progressive Corp. (NYSE: PGR): Piper Sandler upgraded the stock from Neutral to Overweight with a $186 target price. The consensus target price is $143.27. The shares closed at $154.95 on Friday, a one-day gain of over 8% after third-quarter results beat estimates.

SolarEdge Technologies Inc. (NASDAQ: SEDG): Northland Capital upgraded the stock to Outperform from Market Perform and has a $147 target. The consensus target is $276.77 for now. The shares closed at $119.76 on Friday.

Varonis Systems Inc. (NASDAQ: VRNS): As Barclays upgraded the shares to Overweight from Equal Weight, the $35 price target was nudged up to $37. The consensus target is $34.75, and the closing share price on Friday was $30.58.

Downgrades

Eversource Energy (NYSE: ES): Guggenheim downgraded the shares to Neutral from Buy. Its $60 target price is less than the consensus target of $76.57. On Friday, shares closed at $55.03.

Fortinet Inc. (NASDAQ: FTNT): Barclays downgraded the stock to Equal Weight from Overweight, and it lowered its $71 target price to $63. The consensus target is $74.55. The stock closed on Friday at $57.76.

InMode Ltd. (NASDAQ: INMD): Canaccord Genuity’s downgrade to Hold from Buy included a price target cut from $55 all the way to $22. The consensus target is $47.60 for now. The shares closed almost 8% lower on Friday at $20.75, after revenue guidance was cut.

JD.com Inc. (NASDAQ: JD): Morgan Stanley downgraded the shares to Equal Weight from Overweight and cut the $55 target price to $33. The consensus target is $53.33. The last trade on Friday was reported at $27.05.

TechnipFMC PLC (NYSE: FTI): Jefferies downgraded the stock from Buy to Hold, yet the analyst raised the $18 target price to $22. The consensus target is $23.11. The stock closed on Friday at $20.52.

Tractor Supply Co. (NASDAQ: TSCO): Oppenheimer’s downgrade to Perform from Outperform came with a target price cut to $210 from $280. The consensus target is $242.71. The stock closed at $200.74 on Friday.

Initiations

American Express Co. (NYSE: AXP): HSBC Securities initiated coverage with a Hold rating and a $181 target price. The consensus target is $177.79. The shares closed on Friday at $151.10.

American Tower Corp. (NYSE: AMT): Scotiabank initiated coverage with a Sector Outperform rating. However, its $208 price target is less than the $224.07 consensus target. Friday’s closing print was $166.96.

Block Inc. (NYSE: SQ): HSBC Securities initiated coverage with a Hold rating and a $46 price target. The consensus target is $76.37. Friday’s close at $43.17 was down 5% for the day on the downgrade.

Veeva Systems Inc. (NYSE: VEEV): Jefferies started coverage with a Buy rating and a $265 target price. The consensus target is $224.43. Friday’s closing share price was $216.11.

And More

The positive third-quarter results for the big banks that have reported so far could bode well for six top financial stock picks that pay generous dividends and will post their earnings soon.

Friday’s top analyst upgrades and downgrades included Carvana, Chevron, Dynatrace, Exxon Mobil, First Solar, Mastercard, MGM Resorts International, Shopify, Snowflake, Target and Welltower.

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