Stocks were indicated marginally lower on Wednesday morning as the market continues to digest some mixed earnings reports. This is a time in the market where investors are caught in the crosshairs of wanting to see slower economic data and lower inflation data so that the Federal Reserve can begin its rate cutting campaign. That also ties in with why many companies are issuing tempered guidance for the rest of 2024.
Oggonomics is always looking for ideas and research that can benefit both short-term traders and long-term investors. This is where the daily analyst calls for upgrades, downgrades and initiations come into play. Many analyst calls are “strategic bull” calls by nature. After all, analysts often identify their picks of “stocks to buy” even when the stock market or a company’s sector are weak.
Other analyst calls covering their picks of stocks to buy may have very long-term outlooks. The latter “bullish” calls may seem more “permanent” to readers than they do “strategic.” Other analyst calls can also be quite negative as they feature various stocks to sell, which can be strategic or also a long-term negative view.
It needs to always be considered by investors that no analyst call should be a sole reason to buy or sell a stock. And daily analyst calls, and the impact from them or the news that acts a as catalyst for the calls, should help prove one of the Oggonomics mantras that the Efficient Market Hypothesis is not accurate in its assumptions.
These are Wall Street’s top analyst upgrades and analyst downgrades for Wednesday, May 8, 2024.
Datadog, Inc. (NASDAQ: DDOG) fell 11.5% to $112.40 the prior day on earnings. Datadog was then raised to Outperform from Neutral and its price target was raised to $140 from $130 at Robert W. Baird. Needham maintained its Buy rating and $165 price target on Datadog.
DoubleVerify Holdings, Inc. (NYSE: DV) was last seen down 40% at $18.00 after a big earnings report and guidance disappointment. DoubleVerify was maintained with a Buy rating but its price target was cut to $33 from $45 at Needham. DoubleVerify was maintained with an Outperform rating but its price target was cut to $34 from $42 at Robert W. Baird.
Dutch Bros Inc. (NYSE: BROS) was reiterated as Outperform and its price target was raised to $39 from $37 (versus $28.42 prior close) at Wedbush Securities. Dutch Bros closed at $28.42 ahead of beating earnings expectations and shares were indicated up 9% at $31.05 in pre-market trading.
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Electronic Arts Inc. (NASDAQ: EA) was last seen down 3.2% at $126.00 after earnings. Electronic Arts was maintained with an Outperform rating but its price target was cut to $150 from $160 at Robert W. Baird. BMO Capital maintained an Outperform rating for EA but lowered its price target to $154 from $160. HSBC maintained its Hold rating but cut its target to $136 from $142. Goldman Sachs also maintained its Neutral rating but lowered its price target to $139 from $145.
Energizer Holdings, Inc. (NYSE: ENR) was raised to Equal-Weight from Underweight and its price target was maintained as $33 by Morgan Stanley. Energizer shares closed at $28.97 ahead of the call and the consensus analyst price target was $34.25.
Grocery Outlet Holding Corp. (NASDAQ: GO) was reiterated as Underweight with a $23 price target at Morgan Stanley. The call was after earnings missed expectations and its stock closed at $25.90 the prior day.
Inspire Medical Systems Inc. (NYSE: INSP) was downgraded to Neutral from Buy at BofA Securities.
International Flavors & Fragrances Inc. (NYSE: IFF) traded up 6.4% to $94.33 on Tuesday after earnings. International Flavors & Fragrances was raised to Overweight from Neutral and its price target was raised to $100 from $75 at J.P. Morgan.
Reddit, Inc. (NYSE: RDDT) closed at $49.40 ahead of its first earnings call and the shares were indicated up 10% at $54.20 in early trading Wednesday. Reddit was reiterated as Neutral but its price target was raised to $59 from $50 at Robert W. Baird.
Rivian Automotive, Inc. (NASDAQ: RIVN) was last seen down 7% at $9.52 after the electric vehicle maker’s earnings report. Rivian was maintained with a Neutral rating but its price target was cut to $11 from $12 at Mizuho. Rivian was maintained with a Buy rating with a $13 price target at Needham. Cantor Fitzgerald maintained its Overweight rating on Rivian but lowered its price target to $15 from $23.
Rockwell Automation, Inc. (NYSE: ROK) fell 1.9% to $272.04 after earnings on Tuesday and it was trading down another 1% at $269.26 on Wednesday. Rockwell was maintained with an Outperform rating but its price target was cut to $304 from $310 at Robert W. Baird.
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Rhythm Pharmaceuticals Inc. (NASDAQ: RYTM) was downgraded to Neutral from Buy at BofA Securities.
Semrush Holdings, Inc. (NYSE: SEMR) was maintained as Equal-Weight but the price target was raised to $16.50 from $13 (versus $14.65 prior close) at Morgan Stanley. Needham also reiterated its Buy rating and raised its target to $18 from $15.
Sutro Biopharma, Inc. (NASDAQ: STRO) was started with a Buy rating and was assigned a $12 price objective at BofA Securities. This call represents nearly 200% in implied upside from its prior $4.25 closing price if the thesis plays out, although BofA was also the book-running manager for a $75 million secondary offering a month earlier.
UBS Group (AG (NYSE: UBS) was downgraded to Hold from Buy at Deutsche Bank after its price target was achieved. UBS ADSs closed up 7% at $29.54 the day before the call and it has a 52-week range of $18.76 to $32.13.
ZoomInfo Technologies Inc. (NASDAQ: ZI) was last seen trading down 22% at $12.48 after earnings, close to its 52-week low of $12.36. ZoomInfo was downgraded to Neutral from Overweight and its price target was slashed to $15 from $24 at Piper Sandler. Goldman Sachs downgraded ZoomInfo to Sell from Neutral and the firm slashed its target to $12.00 from $19.50.
