The uncertainty regarding the pace of the economic recovery has added to the volatility in the stock market. Amid volatility, TipRanks brings you the latest analyst action on some of your favorite stocks to help you navigate through the ups and downs. Let’s look into the top bullish and bearish calls of the day and see what the Wall Street experts are recommending.
Upgrades
1. Ultragenyx Pharmaceutical
Evercore ISI analyst Liisa Bayko upgraded Ultragenyx (RARE) to Buy from Hold and maintained a price target of $144. In a note to investors, Bayko said that the Angelman program, which has been “slow to get back up and running”, kept the shares under pressure. Currently, management plans to re-initiate the study mid-year and provide updated data by the end of 2021, he added. Furthermore, the analyst considers the stock to be “compelling” at current valuation levels.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Ultragenyx, with 13.8% of investors increasing their exposure to RARE stock over the past 30 days.
2. WideOpenWest, Inc.
Truist Financial analyst Gregory P Miller upgraded WideOpenWest (WOW) to Buy from Hold and increased the price target to $25 from $12. Miller believes that though the company’s performance has had a “checked past”, the last six quarters show that it has “finally hit its stride”. According to the analyst, despite difficult 2021 comps, WideOpenWest is likely to reflect revenue growth at a high single to low double-digit rate through 2022. Furthermore, he considers the sub 10x earnings valuation multiple to be “reasonable” for the stock.
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 3 Buys versus 3 Holds. The average analyst price target of $17.80 implies 15.4% upside potential to current levels.
3. Xylem Inc
Goldman Sachs analyst Brian K. Lee upgraded Xylem (XYL) to Hold from Sell and increased the price target to $107 from $73 following the company’s 1Q results beat and upward revision in 2021 guidance. Lee believes that a Sell rating “no longer appears warranted”, given the company’s fundamentals that “are solidly on the mend”.
The stock has a Hold consensus rating based on 3 Buys, 5 Holds, and 1 Sell. The average analyst price target of $118.29 implies that shares are almost fully valued at current levels.
4. Community Health
Jefferies analyst Brian Tanquilut upgraded Community Health (CYH) to Buy from Hold and increased the price target to $18 from $11. According to Tanquilut, the company’s fundamentals have improved, and “a new track record of EBITDA upside is emerging”. Furthermore, the analyst expects the company to record EBITDA beats and reflect an improved valuation for the shares following the accelerated growth and margin expansion. Additionally, he added that Community Health’s recent debt refinancing seems to have reduced its credit risks.
TipRanks data shows that financial blogger opinions are 100% Bullish on CYH, compared to a sector average of 70%.
5. Oceaneering International
Merrill Lynch analyst Michael Sabella upgraded Oceaneering International (OII) to Buy from Hold and increased the price target to $15 from $12.50. In a note to investors, Sabella said that though the stock performed well in its sector this year, the market does not appreciate the strongest through-cycle turnaround in oilfield services. Furthermore, the analyst believes that his EBITDA estimate for fiscal 2022 is 46% above the OFS peak in the prior cycle but the shares are trading at a valuation of 63% below the prior cycle.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Oceaneering International, with 10.3% of investors increasing their exposure to OII stock over the past 30 days.
Downgrades
1. Peloton Interactive
Merrill Lynch analyst Justin Post downgraded Peloton (PTON) to Hold from Buy and decreased the price target to $100 from $150 citing the company’s recall of both the Tread and Tread+ treadmills. Post said that the recent move by Peloton will not only result in the potential loss of Tread+ subscribers, but will highly impact the launch of the new lower-priced Tread, which he expected to be a significant growth driver in fiscal 2022. Furthermore, the analyst anticipates that the company will delay the launch of the lower-priced Tread in the US to the third quarter of 2021.
According to TipRanks’ Smart Score system, Peloton gets a 4 out of 10, which indicates that the stock is likely to perform in line with market averages.
2. Chiasma
Piper Sandler analyst Edward Tenthoff downgraded Chiasma (CHMA) to Hold from Buy and decreased the price target to $5 from $15 following the company’s announcement that it wil be acquired by Amryt Pharma for 0.396 Amryt American Depositary Share (ADS) for each Chiasma share.
TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on Chiasma, with 2.8% of investors decreasing their exposure to CHMA stock over the past 30 days.
3. Bottomline Technologies
Craig-Hallum analyst George Sutton downgraded Bottomline Technologies (EPAY) to Hold from Buy and decreased the price target to $50 from $60. Sutton noted that bookings decreased over the last two quarters and revenue growth remained low. Furthermore, the analyst noted that transaction related revenues have declined due to COVID over the last couple of quarters, and it is “challenging” for him envision an acceleration in subscription and transactions revenue and bookings growth. Additionally, he sees lower EBITDA guidance for 2022 and continued mediocrity of bookings to be challenging for the market.
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Bottomline Technologies is currently Neutral, as 2 hedge funds decreased their cumulative holdings of the stock by 4,300 shares in the last quarter.
4. Altria Group Inc
Argus Research analyst Kristina Ruggeri downgraded Altria Group (MO) to Hold from Buy. Ruggeri cited the company’s 1Q revenue miss, a sharp decline in the investment value of e-cigarette maker JUUL, and elevated legislative and regulatory risks, including the FDA’s plans to ban menthol cigarettes, as reasons for the downgrade. Furthermore, the analyst decreased her EPS estimates for fiscals 2021 and 2022.
According to TipRanks’ Smart Score system, Altria gets a 7 out of 10, which indicates that the stock is likely to perform in line with market averages.
5. IAMGOLD Corp
Stifel Nicolaus analyst Ingrid Rico downgraded IAMGOLD (IAG) to Hold from Buy and decreased the price target to C$4.75 from C$7.25 following the company’s 1Q results miss. IAMGOLD maintained its guidance, and therefore, Rico remains cautious citing challenges, which could pose risks for the company to achieve its operational targets for 2021.
TipRanks data shows that financial blogger opinions are 50% Neutral on IAG, compared to a sector average of 71%.
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