The volatility in the market remains elevated as the pace of economic recovery remains uncertain. Amid the uncertainty, TipRanks brings you the latest analyst action on some of your favorite stocks to help you navigate the volatility with ease. Let’s look into the top bullish and bearish calls of the day and see what top analysts are recommending.
Upgrades
1. Western Alliance
Wells Fargo analyst Timur Braziler upgraded Western Alliance (WAL) to Buy from Hold and increased the price target to $120 from $100. Following management’s guidance during the 1Q conference call, Braziler decided to “no longer sit on the sidelines” and wait for a better entry point. According to the analyst, despite the uncertain operating environment, Western Alliance has exhibited its ability to outperform its industry peers. Furthermore, given the current 3x TBV valuation, though the upside has been squeezed, the analyst expects the continuation of TBV growth to push the shares higher.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Western Alliance, with 13.8% of investors increasing their exposure to WAL stock over the past 30 days.
2. Trip.com Group Limited
Goldman Sachs analyst Ronald Keung upgraded Trip.com Group (TCOM) to Buy from Hold and increased the price target to $47 from $43, as the analyst initiated coverage on Trip.com’s Hong Kong shares with a Buy rating and a price target of HK$360. Despite the weak 1Q, Keung expects the domestic business to start growing from the second quarter and foresees a recovery in the international business over 2022-23, which is likely to drive a multi-year period of margin expansion.
Wall Street analysts are bullish about the stock. The Strong Buy consensus rating boasts 10 Buy ratings versus 2 Hold ratings. Looking ahead, the average analyst price target stands at $45.45, putting the upside potential at about 22.8% over the next 12 months.
3. Valvoline Inc
Jefferies analyst Laurence Alexander upgraded Valvoline (VVV) to Buy from Hold and increased the price target to $40 from $25. Alexander said, “A resurgent US consumer, ongoing industry consolidation and elevated peer multiples should help Valvoline outperform over the next 12-18 months.” Furthermore, the analyst believes “With Quick Lubes, a higher-margin capital-light service business, roughly half of EBITDA, and growing rapidly due to new store additions (~150 this year), coupled with resurgent consumer activity as vaccine roll-outs are followed by employment gains, both margins and ROIC should improve over the next few years.”
TipRanks data shows that financial blogger opinions on VVV are 75% Bullish, compared to a sector average of 67%.
4. Largo Resources
Morgan Stanley analyst Carlos De Alba upgraded Largo Resources (LGO) to Buy from Hold and increased the price target to C$36 from C$19.60. According to De Alba, the company’s entry into clean energy through its utility-scale battery business “can be a transformational opportunity for the company”. Though technology related to vanadium redox flow batteries are under-developed, the analyst foresees a rise in use driven by increasing demand for longer-duration systems. Furthermore, the analyst forecasts “VRFBs” demand to increase by 25%-30% per year till 2030.
Largo Resources scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
5. CIT Group
KBW analyst Brian Klock upgraded CIT Group (CIT) to Buy from Hold and increased the price target to $62 from $37 to align with KBW’s rating and price target for First Citizens stock. Klock said that the price target indicates the announced deal consideration, which is likely to be accepted by CIT shareholders.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on CIT Group, with 4.5% of investors increasing their exposure to CIT stock over the past seven days.
Downgrades
1. Glatfelter
BMO Capital analyst Mark Wilde downgraded Glatfelter (GLT) to Hold from Buy and decreased the price target to $19 from $21. According to Wilde, though the company’s management and the portfolio pivot are favorable, he remains concerned over the next 6-12 months due to a reduction in volumes of tabletop and metallized products, impacted by the pandemic. Furthermore, while Glatfelter has increased the price of Composite Fibers, it will take time for the gains to be visible.
According to TipRanks’ Smart Score system, Glatfelter gets a 4 out of 10, which indicates that the stock is likely to perform in line with market averages.
2. Sterling Bancorp
Janney Montgomery analyst Jake Civiello downgraded Sterling Bancorp (STL) to Hold from Buy and maintained a price target of $25 following the company’s merger announcement with Webster Financial.
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Sterling Bancorp is currently Neutral, as 5 hedge funds decreased their cumulative holdings of the stock by 1.6 million shares in the last quarter.
3. Knowles Corp
Susquehanna analyst Christopher Rolland downgraded Knowles (KN) to Hold from Buy and decreased the price target to $22 from $24. Following the expansion of valuation multiples and lead times, which have added increased risks, Rolland was compelled to downgrade.
TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on Knowles, with 1.9% of investors decreasing their exposure to KN stock over the past 30 days.
4. Skechers USA Inc
Monness analyst Jim Chartier downgraded Skechers (SKX) to Hold from Buy prior to the release of the company’s 1Q results scheduled for April 22. According to Chartier, though the trends in the US and China remained strong in 1Q, lockdowns in Europe couple with a slower-than-expected vaccine rollout are likely to impact sales.
TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on Skechers, with 25.3% of investors decreasing their exposure to SKX stock over the past 30 days.
5. Cadence Bancorporation
KBW analyst Brady Gailey downgraded Cadence Bancorp (CADE) to Hold from Buy and maintained a price target of $25 to reflect the pending merger with BancorpSouth. Gailey said that both stocks might be range-bound in 2021 “as is typically the case with these larger deals”.
Overall, the stock has a Hold consensus rating based on 5 unanimous Holds. The average analyst price target of $24.33 implies 8.2% upside potential from current levels.
Besides the above, you can also have a look at the following:
Is Netflix a Buy Ahead of Earnings? Analyst Weighs In
Peloton: Tread+ Warning Nothing More Than a ‘PR Black Eye,’ Says Analyst
Raymond James: 2 Chip Giants to Buy Now (And 1 to Avoid)
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