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Wall Street Roundup: Bullish & Bearish Calls Of The Day
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Wall Street Roundup: Bullish & Bearish Calls Of The Day

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. CAE Inc

CIBC analyst Kevin Chiang upgraded CAE (CAE) to Buy from Hold and increased the price target to C$44 from C$42 as the analyst views a “favorable risk/reward setup.” Given CAE’s training ability, global reach, and dominant market position, Chiang believes CAE is “well-positioned”, and offers a “lower-risk way to gain exposure to the aviation recovery.”

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on CAE, with 25.4% of investors increasing their exposure to CAE stock over the last seven days.

2. Independent Bank

Piper Sandler analyst Mark Fitzgibbon upgraded Independent Bank (INDB) to Buy from Hold and increased the price target to $90 from $86 following the company’s “strong” 1Q results and the acquisition of Meridian Bancorp. Despite an early sell-off on Friday, Fitzgibbon expected the stock “to soar” based on a “highly accretive/smart” strategic acquisition and “robust” earnings results. Furthermore, the analyst has a “high degree of confidence” in Independent Bank meeting the deal targets and views the shares as attractively priced at current levels.

TipRanks data shows that financial blogger opinions are 100% Bullish on Independent Bank compared to a sector average of 70%.

3. Continental Resources

Raymond James analyst John Freeman upgraded Continental Resources (CLR) to Buy from Hold with a price target of $34. Following the company’s pre-release, Freeman expects a “blowout Q1”. Furthermore, the analyst believes that Continental “still has hefty exposure” to a bullish oil price deck.

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Continental Resources is currently Positive, as 5 hedge funds increased their cumulative holdings of the stock by 21,400 shares in the last quarter.

4. Imax Corp.

Wedbush analyst Alicia Reese upgraded Imax (IMAX) to Buy from Hold and increased the price target to $26 from $22. Reese said, “IMAX is a COVID recovery story. Pent up demand for out-of-home entertainment drove outsized market share for IMAX in China, Japan, and elsewhere in Asia over the last several months, particularly in Q1:21. We expect similar pent-up demand in North America and Europe to result in market share gains once the film slate returns to a normal cadence.”

Imax scores an 8 of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

5. Travelzoo Inc

Noble Capital analyst Michael Kupinski upgraded Travelzoo (TZOO) to Buy from Hold and maintained a price target of $18. Following the company’s 1Q results, Kupinski increased the revenue estimate to $66.6 million from $65 million for fiscal 2021 and views current revenue trends to be better than his recently lowered forecasts. Furthermore, following the recent pullback in shares from March highs, the analyst views the risk/reward balance to be more favorable.

The consensus rating is a Strong Buy based on 3 unanimous Buys. The average analyst price target stands at $20.67 and implies upside potential of more than 36% to current levels.

Downgrades

1. Mercer International Inc

TD Securities analyst Sean Steuart downgraded Mercer (MERC) to Hold from Buy but increased the price target to $18.50 from $17.50. Based on elevated pulp and lumber price realization expectations, Steuart increased his estimates “modestly” over the next two years, and noted that Mercer’s share price has moved upwards significantly from the late October 2020 lows. Therefore, following the recent rally in share price, the analyst believes that the company is fairly valued at current levels.

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Mercer is currently Neutral, as 4 hedge funds decreased their cumulative holdings of the stock by 693,000 shares in the last quarter.

2. Southwestern Energy

Raymond James analyst John Freeman downgraded Southwestern Energy (SWN) to Sell from Hold. Freeman said, “After a strong ~35% run since our October, the operator’s valuation of ~4.5x/~5x EV 2021/2022E EBITDA (at or above group average in both years) screens high given below-average FCF metrics (~7%/~4% in 2021/2022 vs group average of 8%/12%, respectively), flat production profile, limited upside to rising commodity prices (hedged the majority of natural gas production over next two years), and muted near-term natural gas catalysts entering the shoulder season.”

According to TipRanks’ Smart Score system, Southwestern Energy gets a 3 out of 10, which indicates that the stock is likely to underperform market expectations.

3. DTE Energy Company

Evercore ISI analyst Durgesh Chopra downgraded DTE Energy (DTE) to Hold from Buy but increased the price target to $140 from $134 citing the current valuation with the shares reflecting a 16% year-to-date rally. Following DTE Energy’s outperformance compared to its peers, Chopra foresees the company’s upside potential as limited in the near term.

TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on DTE Energy, with 0.2% of investors decreasing their exposure to DTE stock over the past 7 days.

4. TAL Education Group

Nomura analyst Jessie Xu downgraded TAL Education (TAL) to Hold from Buy and maintained a price target of $68. In a post-earnings research note to investors, Xu said that TAL lacks positive catalysts and has no clear timeline for policy clarifications. Furthermore, the analyst expects the company to report a loss in the first quarter of fiscal 2022, which “might be a surprise to the market,” and experience further reductions in consensus earnings estimates.

TipRanks data shows that financial blogger opinions are 60% Bullish on TAL Education, compared to a sector average of 68%.

5. RingCentral

Oppenheimer analyst Timothy Horan downgraded RingCentral (RNG) to Hold from Buy. Horan believes “1Q earnings should be strong, but risks are on horizon. Industry dynamics have changed notably over the last year: 1) The pandemic has made collaboration/video conferencing a priority over UCaaS voice; 2) Competition (e.g., Microsoft Teams, Zoom bundling services) has heated up; 3) Comm. is becoming more bundled with applications as we move to a more mobile virtualized workplace.” Furthermore, the analyst expects “broad strength in the cloud communications industry (Collaboration, CCaaS and CPaaS) in the next couple of years, but it will probably converge with software applications to create a new service, ‘the virtualized workplace’.”

According to TipRanks’ Smart Score system, RingCentral gets a 7 out of 10, which indicates that the stock is likely to perform in line with market averages.

Besides the above, you can also have a look at the following:
3 “Strong Buy” Stocks Under $10 That Are Poised to Take Off
Sign Of The Times: Are NFTs A Cash Cow, Or A Bubble Ready To Burst?
Qualcomm: Too Much Risk Going Forward, Says Analyst
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