5 Surprises Top Wall Street Analyst Upgrades and Downgrades

By Lee Jackson Published Jan 2, 8:35AM EST

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5 Surprises Top Wall Street Analyst Upgrades and Downgrades — © nycshooter / iStock Unreleased via Getty Images

The futures traded lower as we kick off trading in 2024, after a remarkable 2023. The Nasdaq explode higher, closing up a massive 44. 77%, while the S&P 500 finished up 24.8%, and the venerable Dow Jones industrials posted a solid 13.75% gain. While the major indices closed lower last Friday to round out the 2023 trading year, investors are in much better shape than at the end of 2022. Across Wall Street, most economists and top strategists see the potential for a much slower 2024 and the possibility for some big sell-offs after the significant 2023 gains.

Bonds

Treasury yields closed mixed across the curve after a big rally in the government debt last Thursday. The longer maturities were slightly lower, while the shorter and intermediate bonds finished the session modestly higher. The 10-year note finished the year at a 3.87% yield after trading as high as 5% in late October, while the short two-year paper finished at 4.25%. History tells us that an inversion in the yield of the two indicates a potential for recession in 2024.

Commodities

Threats to Red Sea shipping sending crude prices higher.

Brent and West Texas Intermediate crude finished 2023 lower on the day, after a wild year for the black gold as prices were all over the place. The fears over the shipping lane attacks on cargo ships have subsided somewhat after a military presence by the United States and other countries opened the Red Sea passage route. Natural gas was down 2.39% to end the year at $2.50.

Gold closed the year out with the February contract down 0.50% at $2,073, after a stellar year for the bullion, which finished up a solid 13.28% and printed an all-time high earlier in December at $2,150. Bitcoin, which also had a tremendous year, closed on Friday at $41,901.50, down 1.61%. The cryptocurrency giant rallied a remarkable 150% in 2023.

Here are the top Wall Street analyst upgrades and downgrades on January 2, 2024.

Upgrades

Here are a few of several analyst upgrades reported Tuesday morning.

Centene Corp. (NYSE: CNC | CNC Price Prediction) from Equal Weight to Overweight, and the price target raised from $82 to $90, at Wells Fargo.

Exact Sciences Corp. (NASDAQ: EXAS) from Hold to Buy with a price target of $91 at Benchmark.

Expedia Group Inc. (NASDAQ: EXPE) from Underweight to Equal Weight at Wells Fargo, which also raised its $91 price target to $159.

Huntington Bancshares Inc. (NASDAQ: HBAN) from Underweight to Equal Weight, and the price target increased from $12 to $15, at Barclays.

Downgrades

Apple Inc. (NASDAQ: AAPL) from Equal Weight to Underweight, with the price target lowered from $161 to $160, at Barclays.

Other Calls

Boeing is among the stocks dropped from Goldman’s Conviction Buy List.

American International Group Inc. (NYSE: AIG) was removed from the Conviction Buy List at Goldman Sachs.

Bath & Body Works Inc. (NYSE: BBWI) was removed from the Conviction Buy List at Goldman Sachs.

Boeing Co. (NYSE: BA) was removed from the Conviction Buy List at Goldman Sachs.

Shift4 Payments Inc. (NYSE: FOUR) also was removed from the Conviction Buy List at Goldman Sachs.

About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.