Stocks have had an up and down week, but shares were indicated lower on Thursday morning. The bull market is now within a month of being eight years old, but investors have still found reasons to buy every sell-off. Those same investors are also looking for new and overlooked opportunities.
24/7 Wall St. reviews dozens of analyst reports each day of the week to find new investing and trading ideas for our readers. Some of these analyst reports cover stocks to buy and others cover stocks to sell or avoid. Most of the following analyst calls include some color, and Thomson Reuters was used for consensus analyst price target data.
Wednesday's Federal Reserve statement was confusingly dovish, without much economic upgrade nor with any guidance on updated rate hike targets. Now on Thursday the Bank of England raised its own economic growth forecasts for the next three years while keeping rates flat. The Dow has hit 20,000, and there is a path for DJIA 21,422 later in 2017 or in early 2018.
These are the top analyst upgrades, downgrades and initiations seen on Thursday, February 2, 2017:
Acacia Communications Inc. (ACIA) was raised to Overweight from Equal Weight with an $80 price target (versus a $54.99 prior close) at Morgan Stanley. It was down 5.5% on Wednesday but was indicated up 4.1% at $57.25 on Thursday. Acacia has a 52-week trading range of $27.05 to $128.73 and a consensus analyst target price of $112.50.
Facebook Inc. (FB) was up 2.2% to $133.23 ahead of Wednesday's earnings and was closer to $135.00 at all-time highs in the after-hours session, but shares were indicated up just 0.6% at $134.10 on Thursday. Facebook was downgraded to Hold from Buy with a $135 price target at Pivotal Research. Wedbush Securities reiterated its Outperform rating and raised its target to $175 from $162. Credit Suisse has an Outperform rating and raised its target to $170 from $165. Facebook's old 52-week range was $96.82 to $133.50.
Lululemon Athletica Inc. (LULU) was raised to Neutral from Sell with a $65 price target (versus a $66.40 close) at Goldman Sachs. Lululemon has a 52-week range of $54.00 to $81.81 and a consensus price target of $73.34.
Shutterfly Inc. (SFLY) was last seen down 18.5% at $42.20 after earnings and guidance disappointed investors. It was downgraded to Neutral from Outperform at Robert W. Baird. Needham downgraded Shutterfly to Hold from Buy.
Transocean Ltd. (RIG) was downgraded to Underweight from Equal Weight at Morgan Stanley. Transocean closed up two cents at $13.99 on Wednesday and was indicated down five cents at $13.94 on Thursday. Shares have a 52-week range of $7.67 to $16.66, and the consensus price target is just $12.85.
United Rentals Inc. (URI) has enjoyed one massive run in the post-election rally and then had solid earnings. Now Argus has said it is stretched on valuation after rising 80% since November 8, and the firm downgraded its rating to Hold from Buy as a result.
Urban Outfitters Inc. (URBN) was downgraded to Sell from Neutral with a $22 price target (versus a $26.23 closing price) at Goldman Sachs. Urban Outfitters has a 52-week range of $22.95 to $40.80, and it has a consensus price target of $33.03.
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Other key analyst calls were seen in the following:
Allegheny Technologies Inc. (ATI) was downgraded to Sell from Hold with a $16 price target (versus a $21.62 close) at Berenberg.
CVS Health Corp. (CVS) was downgraded to Neutral from Outperform at Robert W. Baird. It closed down 1% at $77.97 on Wednesday and was down another 1.8% at $76.55 in early indications on Thursday.
Foot Locker Inc. (FL) was raised to Buy from Neutral with an $85 price target (versus a $68.31 close) at Guggenheim.
Juno Therapeutics Inc. (JUNO) was started as Neutral with a $24 price target at Wedbush.
Kite Pharma Inc. (KITE) was started as Neutral with a $24 price target at Wedbush.
Nordstrom Inc. (JWN) was downgraded to Sell from Neutral at Goldman Sachs.
Natus Medical Inc. (BABY) was downgraded to Market Perform from Outperform at Raymond James.
ONEOK Inc. (OKE) was raised to Outperform from Neutral with a $63 price target (versus a $54.01 close) at Credit Suisse.
ONEOK Partners L.P. (OKS) was downgraded to Market Perform from Outperform at BMO Capital Markets. It was also raised to Outperform with a $55 price target (versus a $51.70 close) at Credit Suisse.
Pacific Coast Oil Trust (ROYT) was raised to Buy from Hold with a $2 price target (after rising 26% to $1.50 on Wednesday) at Stifel.
Sally Beauty Holdings Inc. (SBH) was downgraded to Perform from Outperform at Oppenheimer.
Seadrill Partners LLC (SDLP) was raised to Overweight from Equal Weight with an $8 price target (versus a $3.96 close) at Morgan Stanley. Seadrill Partners was indicated up 3.5% at $4.10 on Thursday morning because Morgan Stanley rarely calls on companies to double in price.
Total System Services Inc. (TSS) was raised to Buy from Hold with a $60 price target (versus a $50.32 close) at Stifel.
United States Steel Corp. (NYSE: X) was raised to Buy from Neutral but the price objective remained flat at $40 at Merrill Lynch.
Wednesday's top analyst calls included Amgen, Apple, Corning, Mobileye, Under Armour, Electronic Arts and over a dozen more.