Wall Street Roundup: Bullish & Bearish Calls Of The Day


With continued volatility in the market, TipRanks brings you the latest analyst action on some of your favorite stocks to help you navigate through the ups and downs. Let’s take a closer look at the top bullish and bearish calls of the day and see what market pundits are recommending.

Upgrades

1. EMS-Chemie Holding AG

UBS analyst Patrick Rafaisz upgraded EMS-Chemie (EMSHF) to Buy from Hold and increased the price target to CHF 850 from CHF 500, citing the company’s “reinvention as an EV play”. Rafaisz believes that the company’s content per eclectic vehicle might be as much as 10% higher than in a comparable internal combustion engine platform.

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 1 Buy and 2 Holds. The average analyst price target of $926.04 implies 4.1% upside potential to current levels.

2. Crispr Therapeutics AG

Jefferies analyst Maury Raycroft upgraded Crispr Therapeutics (CRSP) to Buy from Hold and increased the price target to $172 from $165 based on the belief that the company’s renegotiated deal with Vertex Pharmaceuticals creates a large market opportunity and is “a win-win”. Furthermore, following the pullback in shares from the year-to-date highs, Raycroft sees a buying opportunity for the stock.

TipRanks data shows that financial blogger opinions are 94% Bullish on CRSP, compared to a sector average of 69%.

3. Federal Signal Corp.

Raymond James analyst Felix Boeschen upgraded Federal Signal (FSS) to Buy from Hold with a price target of $45 as the analyst suspects “the combination of a broad-based demand recovery in key verticals (street sweepers, dump bodies, safe digging trucks) is accelerating quicker than the market appreciates even before contemplating potential infrastructure bill benefits.” Furthermore, Boeschen believes “FSS would be among the biggest beneficiaries in our coverage given its substantial exposure to public revenues and industrial/ transportation infrastructure – particularly as we surmise FSS’s numerous capacity expansions (organic + M&A) over the last years have set the stage to profitably absorb incremental volumes.”

Despite the upgrade, TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Federal Signal is currently Negative, as 3 hedge funds decreased their cumulative holdings of the stock by 187,000 shares in the last quarter.

4. Cerecor Inc.

Maxim Group analyst Jason McCarthy upgraded Cerecor (CERC) to Buy from Hold and maintained a price target of $7. In a note to investors, McCarthy said that the data released in early March related to the CERC-002 antibody indicates significant progress, and a licensing agreement with Kyowa Kiring aids the potential for the antibody in inflammatory-related conditions. Furthermore, the analyst believes that Cerecor’s CERC-007, which is targeting IL-18 and initially developed for multiple myeloma, should be a differentiating factor in a “crowded space”.

The consensus rating among analysts is a Strong Buy based on 3 unanimous Buys. The average analyst price target stands at $6.67 and implies upside potential of 163.6% to current levels.

5. UnitedHealth

Argus Research analyst David Toung upgraded UnitedHealth (UNH) to Buy from Hold and maintained a price target of $450 following the company’s “strong” 1Q earnings beat and upward outlook revision for fiscal 2021. According to Toung, in the first quarter, the company’s managed care segment reflected strong membership growth, while the Optum unit had a robust backlog. Furthermore, UnitedHealth’s top-line growth and margin expansion are the driving factors for ROI, the analyst added.

UnitedHealth scores a 9 of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

Downgrades

1. Allison Transmission Holdings

Raymond James analyst Felix Boeschen downgraded Allison Transmission (ALSN) to Hold from Buy. While Boeschen continues to “appreciate ALSN’s leading EBITDA margins/FCF profile in the wake of rising input costs across the complex, we see cyclical tailwinds forming (municipal budgets, tight freight market, oil & gas recovery) and we continue to believe that Allison’s role in alternative powertrains could be underappreciated anchored by its recently introduced E-GEN product lineup and extensive testing with its current customer base. We simply see little end in sight to what feels like a pervasive ‘multiple debate’ given the threat electrification could pose on Allison’s leading share/margins in the long-term.”

The stock has a Hold consensus rating based on 1 Buy, 4 Holds, and 1 Sell. The average analyst price target of $42.80 implies 3.2% downside potential from current levels.

2. Lynas Rare Earths Limited

Canaccord Genuity analyst Reg Spencer downgraded Lynas Rare Earths (LYSCF) to Hold from Buy and maintained a price target of A$6.25.  Spencer cited the company’s valuation as the reason for the downgrade following the December quarter’s production results that were in line with analysts’ expectations and sales that were impacted by shipping issues. Furthermore, the analyst reduced his modelled utilization rates for 2021 to justify the continued transport and shipping issues.

TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on Lynas Rare Earths, with 6.4% of investors decreasing their exposure to LYSCF stock over the last seven days.

3. Jack In The Box Inc

Deutsche Bank analyst Brian Mullan downgraded Jack In The Box (JACK) to Hold from Buy but increased the price target to $119 from $115. Mullan views the company’s risk/reward as “the most balanced it has been in quite some time.” Following the stock’s recent rally, the analyst is making a “negative call,” and “trying to exercise some discipline”.

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Jack In The Box is currently Very Negative, as 7 hedge funds decreased their cumulative holdings of the stock by 241,400 shares in the last quarter.

4. Independence Realty

BTIG analyst James W Sullivan downgraded Independence Realty (IRT) to Hold from Buy. In a note to investors, Sullivan said that though he has a positive stance on the company’s peer group-leading revenue growth for the Sunbelt markets, the valuation on the shares currently seems “stretched”. Furthermore, the analyst believes that Independence Realty Trust is currently “fairly valued” but should continue to perform well.

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 3 analysts suggesting a Buy and 2 analysts recommending a Hold. The average analyst price target of $16.38 implies 1.6% downside potential to current levels.

5. Home Point Capital

Merrill Lynch analyst Mihir Bhatia downgraded Home Point Capital (HMPT) to Sell from Buy and decreased the price target to $10 from $16 based on his cautious outlook on the mortgage origination sector. Bhatia believes that margins will remain under pressure, given a less favorable interest rate environment and rising competition. Furthermore, the analyst expects “solid” 1Q results but foresees the remainder of the year to be challenging.

Home Point Capital gets a 1 out of 10 on TipRanks’ Smart Score ranking system suggesting that it is likely to underperform market expectations.

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