Stock upgrades and downgrades are a controversial part of Wall Street. Despite regulations, many banks and firms still have a positive bias toward current clients and companies desired as future clients. In addition, Wall Street analysts are straight-up biased to the buy side. The percentage of sell recommendations is normally below 15 percent!
Regardless, upgrades and downgrades move stocks in the short-term. They fall into our CHEAT SHEET framework category ‘C = Catalyst for a Stock?s Movement’. Here are catalysts you must know today:
Yum! Brands (NYSE:YUM): Bank of America downgraded its rating on this company from Buy to Underperform and changed its price target from $80.00 to $60.00.
The Western Union Company (NYSE:WU): Citigroup downgraded its rating on this company from Buy to Neutral and changed its price target to $15.00.
Check Point Software (NASDAQ:CHKP): Pacific Crest downgraded its rating on this company from Outperform to Sector Perform.
American Electric Power (NYSE:AEP): SunTrust downgraded its rating on this company from Buy to Neutral.
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