Volatility in the market remains elevated as the pace of the 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. Y-mAbs Therapeutics
Merrill Lynch analyst Alec Stranahan upgraded Y-mAbs Therapeutics (YMAB) to Buy from Hold and maintained a price target of $56 following Danyelza’s beat during its first quarter of launch. Stranahan said that the full-year sales guidance was not provided by the management, but the company foresees building sales in 2Q and thereafter. Furthermore, the analyst believes that the early stages of the launch and withdrawal of the sBLA plans by competitor Unituxin as “a best case scenario for Y-mAbs”. Additionally, the analyst increased sales expectations for 2021 and 2022 and said that he has “growing confidence” in the company’s early pipeline.
Consensus among analysts is a Strong Buy based on 5 unanimous Buys. The average analyst price target stands at $57.50 and implies upside potential of 68.1% to current levels.
2. Ionis Pharmaceuticals
UBS analyst Esther Rajavelu upgraded Ionis Pharmaceuticals (IONS) to Hold from Sell and increased the price target to $37.50 from $33 citing fair risk/reward following the company’s pipeline and business strategy. However, Rajavelu continues to foresee a decline in revenues and has little visibility on new launches in the near term.
According to TipRanks’ Smart Score system, Ionis gets a 6 out of 10, which indicates that the stock is likely to perform in line with market averages.
3. Azul SA
Seaport Global analyst Daniel Mckenzie upgraded Azul (AZUL) to Buy from Hold and maintained a price target of $29. According to Mckenzie,the vaccine rollout in Brazil, restructured domestic supply, and restructured costs indicates Azul’s recovery potential. Furthermore, the analyst remains cautious on the recovery in 2022, but his profit estimate is “materially above consensus”.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Azul, with 11.7% of investors increasing their exposure to AZUL stock over the past 30 days.
4. Eagle Bulk Shipping
Fearnley analyst Espen Fjermestad upgraded Eagle Bulk Shipping (EGLE) to Buy from Hold and increased the price target to $55 from $29 following the company’s 1Q results. According to Fjermestad, “everything seems to be moving in the right direction” for Eagle Bulk Shipping with a rise in asset values, market drivers “firing on all cylinders,” and an increase in the flow of capital.
EGLE scores a 9 of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
5. Harsco Corp
Argus Research analyst John Eade upgraded Harsco (HSC) to Buy from Hold and maintained a price target of $26. According to Eade, though the company performed dismally along with the industrial economy in 2014-2016, the appointment of a new CEO, the company’s cost-cutting measures, and business transformation initiatives resulted in a turnaround prior to the pandemic. Furthermore, the analyst noted that Harsco trades at a price-to-sales ratio of 0.8x, well below the peer average of 1.8x.
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 2 Buys. The average analyst price target of $26 implies 15.3% upside potential to current levels.
Downgrades
1. Ocugen Inc
Cantor Fitzgerald analyst Kristen Kluska downgraded Ocugen (OCGN) to Hold from Buy following the company’s 1Q earnings results. Furthermore, Kluska decreased the stock’s price target to $11 from $15 and cited a rise in expenses and lower probability-adjusted COVAXIN sales in the near term due to the delay in EUA application filing. The analyst believes that emerging SARS-CoV-2 variants will create the need for this vaccine in the U.S., but she remains on the sidelines following the recent significant movement in the stock, and uncertainties around timelines and further steps in the near term.
TipRanks data shows that financial blogger opinions are 50% Neutral on OCGN, compared to a sector average of 70%.
2. Kirby Corp.
Gabelli analyst Justin Bergner downgraded Kirby (KEX) to Hold from Buy. Bergner argues that investors “typically look a few years out on earnings to value Kirby,” and foresees decreasing earnings growth after 2023. Furthermore, the analyst believes that the shares are fully valued at current levels.
According to TipRanks’ Smart Score system, Kirby gets a 6 out of 10, which indicates that the stock is likely to perform in line with market averages.
3. Centerra Gold
CIBC analyst Anita Soni downgraded Centerra Gold (CGAU) to Sell from Hold and decreased the price target to C$10 from C$16.50 following the negative legal and political development in the Kyrgyz Republic, the location of the company’s flagship asset. Soni said that the Kyrgyz Government has passed a law that can enforce an external manager to supervise all management activities, including the bank accounts, on companies under concession agreements, which breach certain safety laws. Though the law awaits approval, the analyst noted that Centerra’s Kumtor mine is “the only project in the country that is under concession agreement.”
Centerra Gold gets a 1 out of 10 on TipRanks’ Smart Score ranking suggesting that it is likely to underperform market expectations.
4. At Home Group
Craig-Hallum analyst Jeremy Hamblin downgraded At Home Group (HOME) to Hold from Buy and maintained a price target of $36 following the company’s board’s unanimous approval to sell the company to PE firm Hellman and Friedman for $2.8 billion. According to Hamblin, the deal value is disappointing and too low given the company’s business momentum and reduced risk in the stock due to an improved balance sheet. Furthermore, the analyst expects limited potential strategic buyers during the 40-day “Go Shop” period.
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in At Home Group is currently Very Negative, as 6 hedge funds decreased their cumulative holdings of the stock by 584,800 shares in the last quarter.
5. Leaf Group Ltd
Canaccord Genuity analyst Maria Ripps downgraded Leaf Group (LEAF) to Hold from Buy and decreased the price target to $8.50 from $9.00. According to Ripps, the company reported strong Q1 earnings driven by a rise in eCommerce but cited the completion of the acquisition of the company by Graham Holdings as the reason for the downgrade.
The stock has a Hold consensus rating based on 3 unanimous Holds. The average analyst price target of $8.50 implies that shares are fully valued at current levels.
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