There was an unusually large amount of both upgrades and downgrades Friday, and below we list them and provide our dynamic price analysis for each.
Each morning at Bespoke Premium, we put out a similar report that not only shows which stocks were upgraded and downgraded, but also how the stocks have reacted on previous analyst actions. This gives investors a critical piece of information that is lacking in the other daily upgrade/downgrade reports that are out there.
In the table below, we highlight where the stock was upgraded or downgraded and the average price change on days when the stock has been upgraded or downgraded in the past. We also highlight the average performance of stocks that were upgraded or downgraded at various firms.
As an example from Friday's report, DELL was upgraded at JP Morgan from Neutral to Overweight. When DELL has received an upgrade in the past, it averages an opening gap of 1.94% and an open to close change of 0.39%. This means that DELL typically gaps up and then continues higher from the open to the close when it gets upgraded. Additionally, when JP Morgan upgrades a stock, it usually gaps up about 2.5% and then goes up an additional 25 bps from the open to the close.
Other key upgrades today were CAT, HON, NOK and VZ. Key downgrades were AXP, GWW and JNPR.