The futures pushed lower to start out the week, with the S&P 500 seeing the biggest loss among the major averages, down roughly 0.8%. The Dow Jones industrials and Nasdaq futures were each down 0.7%. This comes after Friday’s session, which saw each of the broad markets hitting near fresh lows for 2022.
Much of this selling has been precipitated by recessionary fears as a result of the Federal Reserve hiking interest rates. Most recently, the central bank raised rates by a total of 75 basis points, marking its third consecutive rate increase by this magnitude. However, there are concerns that, going forward, the Fed could raise rates higher and faster if inflation does not slow quickly enough.
The most recent consumer price index inflation print failed to impress economists earlier this month. While part of the Fed’s dual mandate is to keep inflation at reasonable levels, its toolkit may not be enough or, at the least, drastic moves must be taken. Comments from Fed Chair Powell reflect this sentiment, and interest rate hikes could be even higher, in the area of 100 basis points in the coming months.
24/7 Wall St. reviews dozens of analyst research reports each day of the week 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, September 26, 2022.
Anheuser-Busch InBev S.A./N.V. (NYSE: BUD): Jefferies downgraded the stock to Hold from Buy and cut the $68 price target to $54. The consensus target is $62.21. The shares closed on Friday at $46.64.
Bank OZK (NASDAQ: OZK): Zacks named this regional bank as its Bull of the Day stock. The analyst points out that its dividend has been raised 20 times over the past five years. Shares last closed at $39.52 apiece, and the $46.71 consensus price target represents about an 18% gain.
BP PLC (NYSE: BP): J.P. Morgan’s downgrade was to Neutral from Overweight. The consensus target is $37.28. The stock closed nearly 9% lower on Friday at $28.08.
24/7 Wall St.Chegg Inc. (NYSE: CHGG): Needham raised its Hold rating to Buy with a $28 price target. The consensus target is $23.64. The stock closed down nearly 2% at $18.95 on Friday.
Core Laboratories N.V. (NYSE: CLB): Morgan Stanley downgraded the shares to Underweight from Equal Weight and has a $20 price target. The consensus target is $20.39. The stock closed trading Friday at $13.91, an 11% drop for the day.
Diana Shipping Inc. (NYSE: DSX): The Jefferies downgrade to Hold from Buy included a price target cut to $5 from $7. The stock closed on Friday at $4.22, down almost 8% on the day. The 52-week range is $3.31 to $6.89.
DLocal Ltd. (NASDAQ: DLO): SMBC Nikko downgraded it to Underperform from Neutral and cut the $28 price target to $22. The consensus target is $33.22. The stock on Friday closed down nearly 3% at $22.62.
Farfetch Ltd. (NYSE: FTCH): Citigroup initiated coverage with a Sell rating and a $6 price target. The consensus target is $16.30. The stock closed on Friday at $8.57.
Golden Ocean Group Ltd. (NASDAQ: GOGL): Jefferies downgraded the stock to Hold from Buy. It also cut its $14 price target to $10. The consensus target is $144.80. The stock closed at $8.28 on Friday.
Helmerich & Payne Inc. (NYSE: HP): When Morgan Stanley upgraded the shares to Equal Weight from Underweight, it also raised its $48 price target to $55. The consensus target is $54.93. The last trade for Friday was reported at $35.48.
Immunovant Inc. (NASDAQ: IMVT): UBS cut its Buy rating to Neutral and cut the $7 price target to $5. The consensus target of $9.75 compares with Friday’s close at $4.88.
Lyft Inc. (NASDAQ: LYFT): The UBS downgrade to Neutral from Buy included a price target from $50 all the way to $16. The consensus target is $31.71, and Friday’s last trade was for $13.99 a share.
Methanex Corp. (NASDAQ: MEOH): Scotiabank upgraded it to Outperform from Sector Perform. The consensus target is $46.62. The stock closed on Friday at $28.97.
NexTier Oilfield Solutions Inc. (NYSE: NEX): Morgan Stanley downgraded the shares to Equal Weight rating from Overweight and has a $13 price target. Shares last closed at $6.88, and the $14.31 consensus price target would be a 52-week high.
Nike Inc. (NYSE: NKE): Telsey Advisory Group reiterated an Outperform rating but cut its $130 price target to $125. Shares last closed at $97, with the $129.32 consensus price target coming in much higher.
Paymentus Holdings Inc. (NYSE: PAY): SMBC Nikko lowered its Outperform rating to a Neutral, but the $17.44 consensus target is well above Friday’s final print of $9.68.
Planet Fitness Inc. (NYSE: PLNT): The Raymond James upgrade was from Market Perform to Strong Buy with a $70 price target. The consensus target is $93.50. The $55.88 close on Friday was down almost 3% on the day.
Safe Bulkers Inc. (NYSE: SB): The Buy rating at Jefferies was reduced to Hold, and the $5 price target was cut to $4. The $5.50 consensus target is well above Friday’s last print of $2.77.
Sotera Health Co. (NASDAQ: SHC): KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. The consensus target is $20.88. Friday’s close at $7.34 was down almost 1% on the day.
Spirit AeroSystems Holdings Inc. (NYSE: SPR): This aerospace firm’s struggles to exceed quarterly estimates prompted Zacks to select it as its Bear of the Day. The stock has traded as high as $53.31 per share in the past year but closed most recently at $24.00. That is down more than 50% in the past six months.
24/7 Wall St.TotalEnergies S.E. (NYSE: TTE): J.P. Morgan upgraded the shares to Overweight from Neutral. The consensus target is $69.14. The stock closed on Friday at $44.94.
Unilever PLC (NYSE: UL): Berenberg lifted its Hold rating to a Buy. Shares have traded as high as $55.01 in the past year but closed most recently at $43.85. The consensus price target is $54.00.
Willis Towers Watson PLC (NASDAQ: WTW): Credit Suisse initiated coverage with an Outperform rating and a $288 price target. The stock closed Friday at $200.34, down 1.5% for the day.
Friday’s top analyst upgrades and downgrades included Adobe, Alcoa, Ally Financial, AppLovin, Block, Eli Lilly, Luminar Technologies, Novavax, Twilio, Wendy’s, Zoom Video Communications and Zscaler.
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