How Much Pain Is Already Priced In? Analysts Upgrade or Downgrade American Express, Dow, Roblox and More
Markets were somewhat mixed as the week came to a close. The S&P 500 and Dow Jones industrials each saw a slight loss on the day, while the Nasdaq had a handy gain, up over 0.5%. Despite this small bounce, each of the major averages is on track for posting a fairly sizable loss for the week.
On this day last week, the consumer price index saw its highest print in over four decades. This historic reading necessitated action by the Federal Reserve, which we saw Wednesday when the central bank hiked interest rates by 75 basis points, its first hike of this size since 1994.
As interest rates increase, investors can expect to see an inverse reaction from equities. Currently it does not appear that the Fed is done hiking rates this summer, so there may be more pain for investors down the road. Also, the question remains: how much of these moves by the Fed has been priced into markets already?
24/7 Wall St. is reviewing additional analyst calls seen on Friday. We have included the latest call on each stock, as well as a recent trading history and the consensus targets among analysts. Note that analyst calls seen earlier in the day were on Amgen, AutoZone, Boeing, Dollar General, Etsy, FedEx and more.
American Eagle Outfitters Inc. (NYSE: AEO): B. Riley Securities downgraded the stock to Neutral from Buy and cut the $22 price target to $13. The 52-week trading range is $11.43 to $38.99, and shares traded above $11 apiece on Friday.
American Express Co. (NYSE: AXP): Robert Baird upgraded the shares from Neutral to Outperform with a $175 price target. The 52-week trading range is $136.49 to $199.55, and shares were trading near $139 on Friday.
Capital One Financial Corp. (NYSE: COF): Robert Baird also upgraded this one to Outperform from Neutral, and it has a $145 price target. The 52-week range is $98.54 to $177.95. Shares traded near $104 apiece on Friday.
CF Industries Holdings Inc. (NYSE: CF): Citigroup’s downgrade to Neutral from Buy included a price target cut to $99 from $123. The stock traded near $89 on Friday, in a 52-week range of $43.19 to $113.49.
Dow Inc. (NYSE: DOW): Citigroup lowered its Buy rating to Neutral rating and cut the $82 price target to $60. The shares traded near $55 on Friday. The 52-week trading range is $52.07 to $71.86.
NextEra Energy Partners L.P. (NYSE: NEP): RBC Capital Markets upgraded it to Outperform from Sector Perform, and the firm raised the $86 price target to $89. The stock traded near $69 on Friday. The 52-week trading range is $61.31 to $88.80.
Roblox Corp. (NYSE: RBLX): Truist downgraded the stock to Hold from Buy and cut the price target to $29 from $36. The 52-week trading range is $21.65 to $141.60, and shares were changing hands at around $25 on Friday.
Urban Outfitters Inc. (NASDAQ: URBN): The B. Riley Securities downgrade was to Neutral from Buy, and the price target was cut to $23 from $35. Shares were trading near $20, in a 52-week range is $17.81 to $42.10.
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