The futures were mixed at the midway point of the trading week, after all the major indexes closed higher on Tuesday. While most of the chatter from the Wall Street financial media and strategists Tuesday focused on stocks was mostly positive, the stock market remains very overbought. The reality is that about seven stocks have accounted for 95% of the gains in the S&P 500. Citigroup noted during the day that we could be on the verge of a big tech sell-off, as investors trading Nasdaq futures are sitting on huge gains. If they start selling, the market could be in for a rough ride.
Treasury yields were flat to modestly higher as many traders are holding their fire and waiting for the Federal Reserve meeting on June 13, which is the same day that the May consumer price index (CPI) numbers will hit. It is a reasonably good bet that if the reading comes in higher than anticipated, the Fed will be forced to raise rates again. The May inflation is forecast to rise 0.2%, down from the 0.4% increase seen in April. May’s core CPI, with volatile food and energy prices excluded, is expected to increase 5.3% annually and 0.5% on a monthly basis.
Brent and West Texas Intermediate crude were both down on Tuesday but rallied off the lows of the day as the boost from the Saudi production cuts is wearing off. In addition, Citigroup commented on Tuesday that oil is unlikely to reach the high $80s despite the cuts. The modest selling came despite another double-digit drop in the rig count last week. The data indicates a decline of 52 rigs over the past month, the biggest drop since June of 2020. Natural gas finished the day higher at $2.26.
Gold finished Tuesday higher, and analysts noted that Russia has been selling gold and the Chinese yuan from its National Wealth Fund to finance the country’s budget deficit, which is likely being stretched by the ongoing conflict with Ukraine. Bitcoin, after being battered over the past month, rallied Tuesday by over 5% in a big reversal and closed at $27,080.
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 Wednesday, June 7, 2023.
Advanced Micro Devices Inc. (NASDAQ: AMD): Piper Sandler reiterated an Overweight rating on the stock, and its $110 target price popped to $150. The consensus target is $103.86. The stock closed over 5% higher on Tuesday at $124.23 after the upgrade.
AMC Networks Inc. (NASDAQ: AMCX): Morgan Stanley’s downgrade was to Underweight from Equal Weight, and it cut its $19 target price to $12. The consensus target is $18.86. The stock closed on Tuesday at $11.53.
Apple Inc. (NASDAQ: AAPL): D.A. Davidson cut its Buy rating to Neutral and its target price to $185 from $193. The consensus target is $182.14. Tuesday’s final trade was for $179.21 a share.
AT&T Inc. (NYSE: T): The Underperform rating at MoffettNathanson is now at Market Perform. The firm’s $17 target price compares with a consensus target of $20.73 and Tuesday’s close at $15.67.
Booking Holdings Inc. (NASDAQ: BKNG): Wedbush initiated coverage with an Outperform rating and a $3,060 target price. The consensus target is lower at $2,884.77. The shares ended Tuesday trading at $2,708.10.
Cabot Corp. (NYSE: CBT): When J.P. Morgan downgraded the shares to Neutral from Overweight, its $87 target price dropped to $80. The consensus target is $91.33. The stock closed on Tuesday at $73.68.
Cenovus Energy Inc. (NYSE: CVE): The Goldman Sachs upgrade to Buy from Neutral included a target price nudge to $22 from $20. The consensus target is $22.35. Tuesday’s close was at $17.45.
Cigna Group (NYSE: CI): BofA Securities boosted its Neutral rating to Buy and has a $320 target price objective. The consensus target is $328.13, and the stock closed on Tuesday at $263.20.
Dollar General Corp. (NYSE: DG): Wells Fargo’s downgrade to Equal Weight from Overweight included a target price cut to $165 from $178. The consensus target is $198.46. The shares closed on Tuesday at $157.11.
DTE Energy Co. (NYSE: DTE): Although UBS upgraded the utility giant to Buy from Neutral, the firm trimmed its $129 target price to $124. The consensus target is $129. Tuesday’s close was at $109.59.
Dynatrace Inc. (NYSE: DT): D.A. Davidson started coverage with a Neutral rating and a $50 target price. The consensus target is $52.43, and shares closed on Tuesday at $52.66.
24/7 Wall St.EPAM Systems Inc. (NYSE: EPAM): Barclays lowered its Overweight rating to Equal Weight and its $310 target price to $220. The consensus target is $304.16. The stock closed on Tuesday at $208.77.
FedEx Corp. (NYSE: FDX): Atlantic Equities initiated coverage with an Overweight rating. Its $265 target price is well above the consensus target of $253.19 and Tuesday’s close at $219.50.
Lennox International Inc. (NYSE: LII): KeyBanc Capital Markets upgraded the stock to Overweight from Sector Weight. Its $355 price objective compares with a consensus target of $286.31 and Tuesday’s $299.74 close.
McCormick & Co. Inc. (NYSE: MKC): BofA Securities raised the stock to Neutral from Underperform. It also lifted its $75 target price to $100, well above the consensus target of $79.52. The stock closed on Tuesday at $90.15.
Molson Coors Beverage Co. (NYSE: TAP): The BofA Securities upgrade to Neutral from Underperform came with a target price hike to $68 from $54. The consensus target is $63.25. The stock closed on Tuesday at $65.14, up over 2% on the day.
NiSource Inc. (NYSE: NI): UBS upgraded the stock from Neutral to Buy with a $31 target. The consensus target is $31.33. Tuesday’s last trade was at $26.96.
Novo Nordisk A/S (NYSE: NVO): Citing its outperformance and momentum, Zacks named this stock as its Bull of the Day. The shares last closed at $160.76, and the consensus price target of $176.77 would be a 52-week high.
SiteOne Landscaping Supply Inc. (NYSE: SITE): The upgrade at Truist Financial was to Buy from Neutral. The analyst also lifted the $157 target price to $177. The $154.33 consensus target is closer to Tuesday’s closing trade of $151.38, after a more than 6% one-day gain due to the upgrade and positive commentary.
SJW Group (NYSE: SJW): UBS’s downgrade was to Neutral from Buy, and its $85 target price decreased to $78. The consensus target is $84.75. Tuesday’s close was at $74.67.
24/7 Wall St.Uber Technologies Inc. (NYSE: UBER): Wedbush resumed coverage with an Outperform rating and a $46 target. The consensus target is $48.98. Tuesday’s close was at $40.25.
Ultragenyx Pharmaceutical Inc. (NASDAQ: RARE): Evercore ISI raised its In Line rating to Outperform and its $60 target price to $80. The consensus target is up at $90.05. The stock closed on Tuesday at $51.48.
Vale S.A. (NYSE: VALE): As RBC Capital Markets upgraded the stock to Outperform from Sector Perform, its $13 target price rose to $15. The consensus target is $17.14. On Tuesday, the closing share price was $13.74.
For investors looking to shift to other sectors as the AI rally runs its course, it makes sense now to have positions in the defense and aerospace arena, especially the five highest dividend-paying stocks in the sector that are Buy rated on Wall Street. See more about America’s largest weapons manufacturers.
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Tuesday’s top analyst upgrades and downgrades included Aflac, Cloudflare, Comerica, Comstock Resources, Costco Wholesale, Dollar General, Dominion Energy, Equitrans Midstream, Ford, Meta Platforms, T-Mobile, Valley National Bancorp and Walmart.
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The post Wednesday’s Top Analyst Upgrades and Downgrades: AMD, Apple, AT&T, Dollar General, FedEx, Molson Coors, Uber and More appeared first on 24/7 Wall St..