With a resurgent virus in the background, the stock market continues to remain volatile. TipRanks brings you the latest analyst action on some of your favorite stocks to sail smoothly through the market volatility. Let’s look into the noteworthy bullish and bearish calls of the day and see what the top Wall Street analysts are recommending.
Upgrades
1. Sunrun
Piper Sandler analyst Kashy Harrison upgraded Sunrun (RUN) to Buy from Hold and maintained a price target of $77. Harrison noted that solar stocks were under “significant pressure” since February, impacted by “rising interest rates, regulatory uncertainty associated with net energy metering in CA, and a lack of imminent catalysts.” However, on the recent decline in yields and clearer stance of federal policy support over the long term, the decline in stocks seems like a “head-scratcher”. Therefore, the analyst noted the latest share price weakness and strong residential solar demand as reasons for the upgrade.
TipRanks data shows that financial blogger opinions are 84% Bullish compared to a sector average of 69%.
2. Array Technologies
UBS analyst Jon Windham upgraded Array Technologies (ARRY) to Buy from Hold and maintained a price target of $43 citing the company’s valuation, with the stock reflecting a 40% decline so far this year. In a note to investors, Windham said that Array is likely to gain from “solid” demand for US utility-scale solar and global expansion. Furthermore, the analyst believes the shares are “relatively inexpensive” at current levels.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Array, with 4.7% of investors increasing their exposure to ARRY stock over the past 30 days.
3. Prudential Financial
Credit Suisse analyst Andrew Kligerman upgraded Prudential (PRU) to Buy from Hold and increased the price target to $121 from $79 following his recent meeting with the company’s Vice Chairman Rob Falzon. In a note to investors, Kligerman said that Prudential is experiencing “a low valuation bar” on increasing concerns about the company’s strategy, and therefore, Falzon believes that selling capital intensive Annuities, which are recording lower growth, will free up capital and improve valuation.
TipRanks data shows that financial blogger opinions are 100% Bullish compared to a sector average of 70%.
4. Armada Hoffler Properties
D.A. Davidson analyst Barry Oxford upgraded Armada Hoffler (AHH) to Buy from Hold and increased the price target to $16 from $13. In a note to investors, Oxford said that since the “bottom of the pandemic”, the stock has performed dismally, and currently, represents an “opportunistic way” to play the “re-open” trade. Furthermore, the analyst said that the company is “slowly changing”, focusing on growth through re-positioning of its portfolio and reduction in leverage. Additionally, according to the analyst, at 13.5x expected 2021 FFO, the stock reflects one of the lowest multiples in its peer group.
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 2 Buys and 1 Hold. The average analyst price target of $16 implies 17.4% upside potential to current levels.
5. Poly
Sidoti analyst Gregory Burns upgraded Poly (PLT) to Buy from Hold and increased the price target to $48 from $46 based on stronger-than-expected headset demand.
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Poly is currently Neutral, as 4 hedge funds decreased their cumulative holdings of the stock by 131,100 shares in the last quarter.
Downgrades
1. Occidental Petroleum
Scotiabank analyst Paul Cheng downgraded Occidental Petroleum (OXY) to Hold from Buy and increased the price target to $28 from $26 based on updated ratings and price targets. Cheng believes the stock to be one of the best outperformers in the large-cap E&P space since late October but the Buy rating is no longer justified based on the current risk/reward scenario. Furthermore, the analyst foresees limited catalysts in the near term for the stock.
The stock has a Hold consensus rating based on 4 Buys, 9 Holds, and 1 Sell. The average analyst price target of $30.09 implies 21% upside potential from current levels.
2. Marsh & Mclennan Companies
Raymond James analyst Charles Peters downgraded Marsh & McLennan (MMC) to Hold from Buy. Peters downgraded the stock based on his expectation that the company might report below-average adjusted EBITDA margins and adjusted free cash flow conversion rates over the next two years compared to its peers.
Despite the downgrade, TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Marsh & McLennan, with 8.2% of investors increasing their exposure to MMC stock over the past 30 days.
3. Visteon Corp
Barclays analyst Brian Johnson downgraded Visteon (VC) to Hold from Buy. In a note to investors, Johnson said that Visteon is one of the few pure electronics suppliers, which might experience “elevated headwinds” in the near term due to the shortage of chips.
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Visteon is currently Neutral, as 9 hedge funds decreased their cumulative holdings of the stock by 145,200 shares in the last quarter.
4. VMware
Northland Securities analyst Nehal Chokshi downgraded VMware (VMW) to Hold from Buy and maintained a price target of $169 “due to reduced flexibility and introduction of incremental risks to business.” After the spin-off announced by Dell Technologies, Chokshi said, “improved equity & governance structure theoretically should improve partner ecosystem, but unlikely on a practical basis.” Furthermore, the analyst noted “shares currently seem to be trading at a reasonable valuation based on our DCF analysis and do not carry a discount or premium to what we believe is reasonable. While the transaction does improve their governance, it does come at the expense of levering the business from their current Debt/EBITDA of 1.1x in FY21 to almost a 3x leverage profile due to almost tripling of debt on the balance sheet.”
TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on VMware, with 6.4% of investors decreasing their exposure to VMW stock over the past 30 days.
5. Evolution Mining Limited
Canaccord Genuity analyst Reg Spencer downgraded Evolution Mining (CAHPF) to Hold from Buy and decreased the price target to A$4.35 from A$5 citing the company’s current valuation. The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 3 Buys versus 4 Holds. The average analyst price target of $3.83 implies 9.1% upside potential to current levels.
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