The uncertainty regarding the pace of economic recovery has added to the volatility in the stock market. Amid volatility, TipRanks brings you the latest analyst action on some of your favorite stocks to help you navigate through the ups and downs. Let’s look into the top bullish and bearish calls of the day and see what the Wall Street experts are recommending.
Upgrades
1. Exxon Mobil
Raymond James analyst Justin Jenkins upgraded Exxon Mobil (XOM) to Hold from Sell. Jenkins said, “With the recent downdraft in the stock (off ~10% over the past month), we think it’s the right time to get less negative in our outlook for XOM. 1Q21 earnings indicators show a solid measure of improvement, pushing the company in the right direction of that part of the ‘show me’ story. Also, despite a higher-than-peer valuation (FCF, EV/EBITDA), we think the risk/reward skews less negative in the context of our relative optimism on oil prices and the likelihood for a return to normal in downstream.”
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 7 Buys, 10 Holds, and 1 Sell. The average analyst price target of $61.26 implies 6.9% upside potential to current levels.
2. Amicus Therapeutics
Cantor Fitzgerald analyst Kristen Kluska upgraded Amicus (FOLD) to Buy from Hold and maintained a price target of $17. In a note to investors, Kluska said that there are several deciding factors indicating the full efficacy of AT-GAA therapy, but to date, positive results have been presented by the company’s clinical studies related to the therapy.
TipRanks data shows that financial blogger opinions are 100% Bullish compared to a sector average of 69%.
3. Cousins Properties Inc.
Robert W. Baird analyst Dave Rodgers upgraded Cousins Properties (CUZ) to Buy from Hold but maintained the price target of $42. Rodgers said that the brokers’ implications and data points indicate improved leasing, hiring gains, and strong migration trends toward the Southeast. Therefore, based on such specifications and the company’s recent underperformance compared to its peers, the analyst believes Cousins Properties to be well-positioned reflecting the rise in parking recoveries, leverage improvement, and an expected increase in liquidity in the near term.
According to TipRanks’ Smart Score system, Cousins Properties gets a 5 out of 10, which indicates that the stock is likely to perform in line with market averages.
4. Faurecia SA
HSBC analyst Henning Cosman upgraded Faurecia (FURCF) to Buy from Hold and increased the price target to EUR 57 from EUR 40. According to Cosman, Faurecia is on the path to becoming the most profitable EU supplier and closing its valuation gap compared to its peers. Furthermore, the analyst believes the company’s market share gains in core segments have reduced BEV risks and the latter half of this year provides upside potential to earnings over the long term.
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 4 Buys and 3 Holds. The average analyst price target of $65.93 implies 16.5% upside potential to current levels.
5. RLJ Lodging Trust
Truist Financial analyst Gregory P Miller upgraded RLJ Lodging Trust (RLJ) to Buy from Hold and increased the price target to $19 from $13. Miller believes that investors should buy the stock before the “first wave of professional corporate travelers” comes back on the road and prior to the release of its anticipated WYndham conversion detail. Though the travel sector has risen and investors’ valuation concerns are increasing following the outperformance of Lodging REITs, the analyst believes RLJ Lodging to be “less appreciated” given the expected portfolio catalysts.
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 2 Buys and 4 Holds. The average analyst price target of $16.80 implies 6.5% upside potential to current levels.
Downgrades
1. Middlesex Water Company
Janney Montgomery analyst Michael Gaugler downgraded Middlesex (MSEX) to Hold from Buy. Gaugler cited the current valuation as the reason for downgrade, which reflects that shares are trading above his fair value estimate of $77. According to the analyst, the shares have “the lowest yield in the water utility peer group at 1.33%” at current levels.
TipRanks data shows that financial blogger opinions are Neutral compared to a sector average of 68% bullish.
2. Synchrony Financial
Oppenheimer analyst Dominick Gabriele downgraded Synchrony Financial (SYF) to Hold from Buy. Gabriele said, “Combined with today’s Gap partnership loss ($3.8B of loans/~5% of portfolio) effective 04/30/22, and shifting consumer spending focus, we move to the sidelines as sentiment and various fundamentals become challenged in 2022/2023 vs. consensus’ previous expectations…Although cyclical tailwinds likely to improve SYF’s fundamentals, we see more upside at peers.”
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Synchrony is currently Neutral, as 9 hedge funds increased their cumulative holdings of the stock by 1.7 million shares in the last quarter.
3. Aptargroup
Robert W. Baird analyst Ghansham Panjabi downgraded Aptargroup (ATR) to Hold from Buy and maintained a price target of $150. According to Panjabi, the price target is based on 30x P/E valuation multiple, which reflects limited upside potential following the company’s recent outperformance.
Aptargroup gets a 3 out of 10 on TipRanks’ Smart Score ranking suggesting that it is likely to underperform market expectations.
4. Badger Daylighting Ltd
Canaccord Genuity analyst Yuri Lynk downgraded Badger Daylighting (BADFF) to Hold from Buy and reiterated a price target of C$43, citing the company’s valuation as the reason for the downgrade. In a note to investors, Lynk said that based on the “extremely rich” stock’s valuation and weaker-than-expected 1Q results, he prefers to move to the sidelines.
According to TipRanks’ Smart Score system, Badger Daylighting gets a 5 out of 10, which indicates that the stock is likely to perform in line with market averages.
5. Vornado Realty
Merrill Lynch analyst James Feldman downgraded Vornado (VNO) to Sell from Hold and decreased the price target to $44 from $48 following his broader research note on Office REITs. In a note to investors, Feldman said that though the companies, which are related to a “reopening trade” and have exposure to NYC, have experienced a cyclical bounce, the upside potential seems to be priced in. Furthermore, per his “core thesis”, flexible work culture will continue in the future, which will result in fewer requirements of office space on the expiration of leases. Additionally, the analyst noted that the NYC vacancy rate is currently at a record high and is likely to remain elevated, which will limit pricing power in 2023.
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Vornado is currently Very Negative, as 7 hedge funds decreased their cumulative holdings of the stock by 1.1 million shares in the last quarter.
Besides the above, you can also have a look at the following:
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