5 Red-Hot Stocks Top Thursday’s Biggest Wall Street Upgrades and Downgrades

By Lee Jackson Published Jan 11, 8:55AM EST

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5 Red-Hot Stocks Top Thursday’s Biggest Wall Street Upgrades and Downgrades — © santirf / iStock Editorial via Getty Images

The futures were trading flat after a solid rebound Wednesday that saw all the significant indices finish the day higher, with the Nasdaq leading the way, closing up 0.75% at 14,969.65. With the December inflation data slightly above expectations and significant bank earnings kicking off the fourth-quarter earnings reports this week, all eyes will be only on the results but also the forward commentary, as many feel the consumer is tapped out and spending could fall off a cliff.

Bonds

Two-year and 10-year Treasury notes traded lower early Thursday.

Treasury yields were mixed across the curve as bond traders held fire, waiting to see how the inflation picture was trending. While many continue to make the case that rate cuts could come as soon as March, New York Federal Reserve President John William threw cold water on that possibility, saying in a speech Wednesday, “I expect that we will need to maintain a restrictive stance of policy for some time to achieve our goals fully.” The 10-year note closed trading at 4.03%, while the two-year paper was at 4.36%.

Commodities

Natural gas producers Chesapeake and Southwestern announce merger.

After a strong move higher recently, both Brent and West Texas Intermediate crude both closed lower on Wednesday, after some large inventory builds offset concerns over the Middle East war expansion. Brent finished the session down over 1% at $76.81, while WTI closed at $71.37, down 1.2%. Natural gas was the loser, closing 4.73% at $3.04.

Gold closed Wednesday modestly higher, with the February contract finishing the session at $2,034.40. The song remains the same, with significant central bank buying and geopolitical concerns keeping the wind in the sails of the bullion. Bitcoin was higher by 1% as the Securities and Exchange Commission finally gave the green light to exchange-traded funds for the cryptocurrency, which many feel could increase prices.

Earlier Thursday morning, Chesapeake Energy Corp. (NYSE: CHK | CHK Price Prediction) and Southwestern Energy Co. (NYSE: SWN) agreed to an all-stock merger valued at $7.4 billion. Chesapeake shareholders will own 60% of the combined company. The company will get a new name. (These five excellent dividend stocks have yields over 10%.)

Here are the top Wall Street analyst upgrades, downgrades and other calls for Thursday, January 11, 2024.

Upgrades

Here are the top four upgrades announced on Thursday morning.

American Airlines Group Inc. (NASDAQ: AAL) from Hold to Buy with a price target of $18 at Jefferies.

Chewy Inc. (NYSE: CHWY) from Equal Weight to Overweight at Barclays, which also increased its $19 price target to $30.

Mastercard Inc. (NYSE: MA) from Perform to Outperform with a price target of $510 at Oppenheimer.

Salesforce Inc. (NYSE: CRM) from Neutral to Outperform, and a $240 price target raised to $300, at Robert W. Baird.

Downgrades

Parent of Taco Bell and Pizza Hut takes a downgrade Thursday.

Albemarle Corp. (NYSE: ALB) from Buy to Hold with the price target lowered from $155 to $135 at Deutsche Bank.

Blackstone Inc. (NYSE: BX) from Outperform to Perform at Oppenheimer. No price target was given.

Paramount Global (NASDAQ: PARA) from Neutral to Sell, with the price target cut from $17 to $11, at Redburn Atlantic.

Seagate Technology Holdings PLC (NASDAQ: STX) from Neutral to Underperform with a price target of $65 at Exane BNP Paribas.

WPP PLC (NYSE: WPP) from Buy to Sell at UBS. The firm cut its price target from 1,200 pence to 700 pence as well.

Yum! Brands Inc. (NYSE: YUM) from Overweight to Equal Weight, and price target lowered from $150 to $135, at Wells Fargo.

Other Calls

China-based online gaming company gets a restart and Outperform rating.

The Interpublic Group of Companies Inc. (NYSE: IPG) initiated with a Neutral rating and price target of $36 at UBS.

Netease Inc. (NASDAQ: NTES) coverage resumed with an Outperform rating and a price target of $126.

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.