Stock Upgrades: Don't Expect Netflix, Inc.'s House of Cards to Come Crashing Down Anytime Soon
Equity markets advanced again, and if the Dow's (^DJI) 27th record of 2013 sounds like a broken record, yesterday it was one of those old-timey 78s that did the trick. Blue chips rose by 78 points after Ben Bernanke, in likely his last appearance on Capitol Hill, told investors what they wanted to hear. (Good riddance, likely say our lawmakers, after the Fed head wasted no time in telling his audience that the recovery is on track " despite the strong headwinds created by federal fiscal policy.") Overseas, advertising giant Publicis Groupe (EPA:PUB) gained 3.42% to a fresh 52-week peak. Its Saatchi & Saatchi unit propelled Mrs. Thatcher to power with its iconic Labour Isn't Working campaign ad at a time of horrendously high unemployment. Maggie famously wasn't much for turning, and Meredith may want to similarly stand her ground. Ms. Whitney has come in for some withering criticism in recent weeks, but those who say her 15 minutes of fame are over may be off by three-quarters of an hour after Detroit announced the largest municipal bankruptcy in American history.
No top-tier economic data due today, but the first full week of Q2 reporting season concludes with earnings expected out of Baker Hughes ( BHI ), General Electric ( GE ), Honeywell ( HON ), Ingersoll-Rand ( IR ), Rockwell Collins ( COL ), Schlumberger (SLB), Vodafone (VOD), and Whirlpool (WHR).
Archer-Daniels Midland (ADM): JPMorgan moves the agribusiness outfit to Neutral from Sell.
BlackBerry Ltd (BBRY): The firm, formerly known as Research In Motion, is raised to Market Perform from Underperform by BMO Capital.
Cepheid (CPHD): Piper Jaffray juices its recommendation to Overweight from Equal Weight.
Diageo (DEO): The British brewing behemoth, whose brands include Guinness and Johnnie Walker, gets an Overweight-from-Neutral boost by JPMorgan.
Extra Space Storage (EXT): Citing the company's above-average Funds From Operation growth, Cantor Fitzgerald increases its investment opinion to Hold from Sell. The price objective, previously $44, is taken to $47.
Fred's (FRED): The retailer is raised to Hold from Sell at Deutsche Bank.
Netflix, Inc. (NFLX): The video-streaming service, whose House of Cards just made Emmy history , is now Market Perform from Underperform at Northland Capital. The broker expects upside to Q2 earnings, and increases its target price to $225. The stock has surged some 227.81% in the past 12 months.
STAG Industrial (STAG): STAG gets upgraded to Outperform from Sector Perform at RBC Capital.
Subsea 7 (SUBCY): Deutsche Bank hoists the stock to Buy from Hold.
Synovus (SNV): Shares are upgraded to Buy from Neutral at Compass Point, which takes its target to $3.50 from $2.70. Encouragingly, the company is to raise capital to pay back its TARP (Troubled Asset Relief Program) commitments.
Technology Stocks : Disk drive makers Seagate (STX) and Western Digital (WDC) are each now Neutral from Sell at Citigroup.
Disclosure: Minyanville Studios, a division of Minyanville Media, Inc., has a business relationship with BlackBerry.