With volatility likely to continue 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. Banco Santander Chile
Merrill Lynch analyst Ernesto Gabilondo upgraded Banco Santander Chile (BSAC) to Buy from Hold and increased the price target to $27 from $25 following the company’s revised guidance for fiscal 2021. According to Gabilondo, the firm’s strategists have a positive stance on Chile due to “faster economic activity, higher commodities’ prices and the fastest vaccination in the region.”
TipRanks data shows that financial blogger opinions are 100% Bullish on BSAC, compared to a sector average of 69%.
2. Omnicom Group
Macquarie analyst Tim Nollen upgraded Omnicom (OMC) to Buy from Hold and increased the price target to $93 from $76. According to Nollen, a “cyclical rebound” is visible in the advertising space, with “new business growth spurring consumer demand and hence ad demand.” In a note to investors, the analyst said that though valuations for the sector are in line with 10-year averages, they seem low compared to prior periods.
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 3 Buys versus 2 Holds. The average analyst price target of $89 implies 6.6% upside potential to current levels.
3. Alphabet Class A
China Renaissance Se analyst Ella Ji upgraded Alphabet Class A (GOOGL) to Buy from Hold and increased the price target to $3,000 from $1,477. Following the company’s first-quarter results, Ji has become increasingly bullish on Alphabet’s strong growth momentum and expected growth in the advertising business, particularly YouTube ads, over the long term. Furthermore, the analyst considers Google Cloud as “a solid player amidst the global business digitalization trend.”
Alphabet scores a 9 of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
4. AvalonBay
Evercore ISI analyst Steve Sakwa upgraded AvalonBay (AVB) to Buy from Hold and increased the price target to $208 from $199. According to Sakwa, the expected accretion from the company’s renewed ramp-up in development is being underappreciated by the market. Furthermore, the analyst said that his upgrade is “not predicated on our modeling anything ‘heroic’ with respect to same-store growth during the post-COVID recovery.”
TipRanks data shows that financial blogger opinions are 100% Bullish on AVB, compared to a sector average of 69%.
5. PG&E
Wells Fargo analyst Neil Kalton upgraded PG&E (PCG) to Buy from Hold and increased the price target to $15.50 from $12. In a note to investors, Kalton said that PG&E’s risk/reward “looks highly compelling” following the company’s underperformance compared to the S&P Utilities index so far this year. The analyst added that wildfire and bankruptcy risks remain threats for the company, while remote, “continues to lurk in the background”. Therefore, the analyst believes the AB 1054 liability cap, mitigation efforts taken by the company, and improved firefighting techniques in California reduces the risk to investors. Following the recent weakness in the stock, Kalton also foresees a “tactical opportunity”.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on PG&E, with 5.7% of investors increasing their exposure to PCG stock over the past seven days.
Downgrades
1. Essex Property
Evercore ISI analyst Steve Sakwa downgraded Essex Property (ESS) to Hold from Buy but increased the price target to $297 from $279 following the company’s 1Q earnings report.
According to TipRanks’ Smart Score system, Essex Property gets a 7 out of 10, which indicates that the stock is likely to perform in line with market expectations.
2. Graphic Packaging
Morgan Stanley analyst Neel Kumar downgraded Graphic Packaging (GPK) to Hold from Buy and maintained a price target of $20. Though Kumar believes that plastic to paperboard conversions, improving boxboard pricing, and expected stronger free cash flow will aid organic growth, he foresees modest upside in the stock following its price gain of 41% over the past six months. Furthermore, with the belief that 2021 earnings will not be a catalyst, the analyst has a “less compelling” reason to be positive in the near term.
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Graphic Packaging is currently Neutral, as 4 hedge funds increased their cumulative holdings of the stock by 248,000 shares in the last quarter.
3. Renewable Energy Group Inc.
Roth Capital analyst Craig Irwin downgraded Renewable Energy Group (REGI) to Hold from Buy and decreased the price target to $35 from $90. According to Irwin, following the steep appreciation in feedstock prices so far this year, “profit compression” is expected. Furthermore, the analyst believes that though the company’s renewable diesel production is expected to remain profitable, significant losses in biodiesel production will offset the upside. Moreover, the analyst noted that whether the company will remain profitable in the second half of 2021 or not is questionable.
According to TipRanks’ Smart Score system, Renewable Energy gets a 6 out of 10, which indicates that the stock is likely to perform in line with market expectations.
4. DTE Energy Company
Merrill Lynch analyst Julien Dumoulin Smith downgraded DTE Energy (DTE) to Sell from Hold and maintained a price target of $131. Though the stock has outperformed as positive sentiment drove stocks exposed to the midstream and RNG sectors, Dumoulin Smith believes that the rally is “overdone”. Furthermore, the analyst believes that after divesting its midstream business in the middle of the year, DTE Energy will be a 90% regulated utility business having single-state exposure in Michigan.
The stock has a Hold consensus rating based on 2 Buys, 6 Holds, and 1 Sell. The average analyst price target of $142.25 implies 1.6% upside potential from current levels.
5. Weyerhaeuser
Stephens analyst Mark Connelly downgraded Weyerhaeuser (WY) to Hold from Buy and maintained a price target of $35. Connelly expects that though record lumber markets are not showing any signs of slowing, the remaining business is “generating the flattish sort of results we’d expect from a timber REIT,” which investors will mistake for a housing play. Furthermore, the analyst argues that elevated lumber prices have resulted due to supply inefficiencies, and “not any fundamental shortage relative to demand”.
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Weyerhaeuser is currently Neutral, as 11 hedge funds decreased their cumulative holdings of the stock by 3.4 million shares in the last quarter.
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