Monday’s Top Analyst Upgrades and Downgrades: AMD, Alcoa, Chewy, CrowdStrike, DraftKings, Goldman Sachs, Lyft, Schlumberger, Zoom Video and More
The futures were lower Monday, as battered investors return after a dreadful Friday that saw all the major indexes get hammered. The winner in the death and destruction race was the tech-heavy Nasdaq, down a stunning 3.8% on the day. Stronger than expected nonfarm payroll numbers combined with unemployment dropping to 3.5% from 3.7% lit the fuse and exploded the massive risk-off move.
Investors may be in for a grim replay this week, as the consumer price index numbers will hit the tape on Thursday. While they should be lower than in the summer, they will still be much higher than the Federal Reserve’s stated 2% level. If they come in above expectations, a 75-basis-point increase in early November will be a given, as well as a 50-basis-point increase in December at the last Fed meeting for the year.
Interest rates were higher again across the Treasury curve on Friday, as the sellers returned as the odds for the aforementioned 75-basis-point move in November have increased dramatically. While the 10-year note traded up to a 3.88% yield, the inversion with the two-year note remained in place, with the shorter maturity closing Friday at 4.31%. The inversion is a recession indicator for many in the bond market.
Brent and West Texas Intermediate crude both exploded higher Friday, with the former up 4.15% and the latter a stunning 5.22%. OPEC’s announcement last week of a massive 2 million barrel per day production cut was the reason for one of the biggest days for the two benchmarks in months. Natural gas closed lower on the day, while both gold and Bitcoin also closed down, following the equity markets’ lead.
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 Monday, October 10, 2022.
Advanced Micro Devices Inc. (NASDAQ: AMD): Stifel reiterated a Buy rating and cut its $122 target price to $100. Wells Fargo stayed with an Overweight rating and lowered its $90 target price to $85. Truist Financial reiterated a Hold rating and slashed the price target to $70 from $107. The consensus target is $114.37 for now. The stock closed almost 14% lower on Friday at $58.44 after the company issued a third-quarter revenue warning.
Alcoa Corp. (NYSE: AA): UBS started coverage on the aluminum giant with a Neutral rating and a $43 target price. The consensus target is up at $55.05. Friday’s last trade was reported at $39.01.
Biogen Inc. (NASDAQ: BIIB): Argus upgraded the biotech giant to Buy from Hold and has a $300 target price. The consensus target is $267.47. The shares closed on Friday at $257.89.
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Check Point Software Technologies Ltd. (NASDAQ: CHKP): SMBC Nikko initiated coverage on the cybersecurity giant with a Neutral rating and a $115 target. The consensus target is $139.13. The stock closed on Friday at $110.69.
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