With volatility in the market likely to continue, 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. United States Steel
Morgan Stanley analyst Carlos De Alba upgraded United States Steel (X) to Buy from Hold and increased the price target to $32 from $24 as part of a broader research note on the sector. According to De Alba, the fundamentals of the steel market remain on “solid footing”, with expectations of HRC prices to be above $1,000 per ton through “at least” fourth-quarter of 2021. Additionally, the analyst noted that demand remains resilient and might benefit from the Biden administration’s infrastructure plan in the long term.
Furthermore, United States Steel scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
2. Air Canada
TD Securities analyst Tim James upgraded Air Canada (ACDVF) to Buy from Hold and increased the price target to C$30 from C$28. According to James, the company’s recent share price weakness creates an attractive entry point with positive catalysts expected in the coming months. Furthermore, the analyst believes that a fall in COVID-19 cases in Canada and a “rapidly increasing” vaccinated population is likely to improve sentiment towards the stock.
TipRanks data shows that financial blogger opinions are 80% Bullish on ACDVF, compared to a sector average of 67%.
3. ViacomCBS
Barrington analyst James Goss upgraded ViacomCBS (VIAC) to Buy from Hold with a price target of $50. Goss believes “The ViacomCBS streaming efforts create a compelling collection of products to navigate the shifting media consumption landscape. The opportunity to connect with consumers across various price points and content genres enable the company to capitalize on shifts in consumer and advertiser spending.” Furthermore, “the recent capital raise and other balance sheet efforts provide increased flexibility to accelerate its push into SVOD and AVOD offerings,” the analyst added. Additionally, he believes that the “excesses” in the stock’s valuation have been eradicated, which warrants an upgrade.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on ViacomCBS, with 33.2% of investors increasing their exposure to VIAC stock over the past 30 days.
4. Mirati Therapeutics
Jefferies analyst Maury Raycroft upgraded Mirati Therapeutics (MRTX) to Buy from Hold but decreased the price target to $196 from $208. Raycroft believes “MRTX positioning+ability to adjust development in real-time based on competitor updates is a strategic advantage, and this is apparent in MRTX’s 1Q decision to likely be 1st mover to show awaited initial KRAS+pembro 1L NSCLC data 2H.”
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Mirati Therapeutics, with 19.3% of investors increasing their exposure to MRTX stock over the past 30 days.
5. Dime Community Bancshares
Stephens analyst Matt Breese upgraded Dime Community (DCOM) to Buy from Hold and increased the price target to $38.50 from $35 following the company’s “solid” first-quarter report and strong fundamental outlook. Furthermore, Breese is encouraged by the bank’s core NIM guidance and share repurchase program and foresees Dime Community having a “newfound opportunity to take market share in the disrupted Long Island markets” following the recently announced Webster-Sterling and M&T Bank-People’s United acquisition deals.
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 $40.75 implies 19.6% upside potential to current levels.
Downgrades
1. ITT Corp
UBS analyst Damian Karas downgraded ITT Corp (ITT) to Hold from Buy but increased the price target to $107 from $92. In a note to investors, Karas said that the company’s “outsized growth” and margin opportunity currently seems priced into the shares. Furthermore, the analyst believes that ITT remains well-positioned to achieve “outsized” organic growth and double-digit earnings growth through the cycle in the long term, but cited the company’s valuation as a reason for the downgrade with the stock reflecting 31% gain so far this year. Currently, he believes that the company’s risk/reward is more balanced.
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in ITT Corp is currently Neutral, as 3 hedge funds decreased their cumulative holdings of the stock by 42,700 shares in the last quarter.
2. Orbcomm
Raymond James analyst Ric Prentiss downgraded Orbcomm (ORBC) to Sell from Buy following the company’s announcement of the expiration of its merger “go-shop” period. Notably, Orbcomm and GI Partners announced the merger in April this year.
TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on Orbcomm, with 27.5% of investors decreasing their exposure to ORBC stock over the past 30 days.
3. Centerra Gold
Canaccord Genuity analyst Dalton Baretto downgraded Centerra Gold (CGAU) to Hold from Buy and decreased the price target to C$11.50 from C$14.50 following the impact on Kumtor after a series of events announced in Kyrgyzstan. According to Baretto, such issues might ruin the relationship of the company with the Kyrgyz State.
Centerra Gold gets a 2 out of 10 on TipRanks’ Smart Score ranking system, suggesting that it is likely to underperform market expectations.
4. At Home Group
Monness analyst Jim Chartier downgraded At Home Group (HOME) to Hold from Buy following the company’s announcement to be acquired for $36 per share by Hellman & Friedman. Given the company’s “clean” balance sheet, “strong momentum” and growth potential along with favorable housing trends, Chartier expected a higher bid. Though the analyst expects a competing bid, a significant upside in the shares from the current level is doubtful.
The stock has a Hold consensus rating based on 6 Holds and 1 Buy. The average analyst price target of $34 implies 6.3% downside potential from current levels.
5. Soliton
Maxim analyst Anthony Vendetti downgraded Soliton (SOLY) to Hold from Buy after the company agreed to be acquired by Allergan Aesthetics, an AbbVie company, for $22.60 per share in cash.
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 1 Buy and 1 Hold. The average analyst price target of $25 implies 11.6% upside potential to current levels.
Besides the above, you can also have a look at the following:
2 “Strong Buy” Stocks With at Least 7% Dividend Yield
Is Chemocentryx Stock a Buy Right Now? This Is What You Need to Know
Ocugen’s Valuation Deserves a Haircut, Says Analyst
Dividend-Yield Calculator
