Wall Street analysts revised their views on several sectors, based on the likely impact of Trump's stated policies. At least two equity strategists lowered their S&P 500 year-end target, citing heightened uncertainty.
Following is a roundup of key analyst actions on U.S. stocks and sectors following Trump's win:
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U.S. Research Roundup: [RCH/US]
S&P 500 INDEX <.SPX>
** BMO cuts 2016 year-end target to 2,100 from 2,250
** Fundstrat Global Advisors cuts year-end target to 2,225 from 2,325
** BofA Merrill maintains year-end target at 2,000
** Goldman Sachs keeps year-end target of 2,100
** UBS reiterates year-end target of 2,150
Auto Parts Suppliers
** Magna International <MGA.N> (>> Magna International Inc.), Lear Corp (>> Lear Corporation), Delphi Automotive
(>> Delphi Automotive PLC), BorgWarner Inc (>> BorgWarner Inc.), American Axle (>> American Axle & Manufact. Holdings, Inc.), Adient (>> Adient PLC):
BofA Merrill cuts to "underperform" rating, citing greater risk of change
with respect to trade and NAFTA
** LifePoint Health Inc (>> LifePoint Health Inc): BofA Merrill cuts to "underperform" from
** Universal Health Services Inc (>> Universal Health Services, Inc.), Tenet Healthcare Corp (>> Tenet Healthcare Corp): BofA
Merrill cuts to "neutral" from "buy"
** UnitedHealth Group Inc (>> UnitedHealth Group Inc), HealthSouth Corp (>> HealthSouth Corp), HCA Holdings Inc
(>> HCA Holdings Inc) and Amedisys Inc (>> Amedisys Inc): Mizuho downgrades to "neutral" from "buy"
on extreme risk of Obamacare being repealed or replaced
** American Water Works Co Inc (>> American Water Works Company Inc): BofA Merrill raises to "buy" as co's
dominant size and scope would position it to benefit the most from increased
infrastructure spend and privatization
** SunPower Corp (>> SunPower Corporation): BofA Merrill cuts to "neutral" from "buy", saying
investor sentiment toward the solar sector should continue to decline as
Trump intends to reduce federal spending on climate change
Companies with Mexico exposure
** Constellation Brands Inc (>> Constellation Brands, Inc.): BofA Merrill cuts to "underperform" from
"buy"; says Trump win creates uncertainty for company as Mexican beer
accounts for over 50 pct of company's sales
** Kansas City Southern (>> Kansas City Southern): BofA Merrill cuts to "neutral" from "buy"
and removes from U.S. 1 list; KSU generates more than 40 pct of its revenue
** U.S. Steel Corp (>> United States Steel Corporation), Commercial Metals Co (>> Commercial Metals Company): Jefferies upgrades
to "buy" rating, saying industry should benefit from Trump's protectionist
** Commercial Metals (>> Commercial Metals Company): BofA Merrill raises to "buy" from
"underperform," given increased likelihood of protectionist action and
infrastructure stimulus spending
** Lockheed Martin Corp (>> Lockheed Martin Corporation): Deutsche Bank upgrades Pentagon's No. 1
weapons supplier to "buy" from "hold" on likely uptick in defense spending
** BWX Technologies <BWTX.N>: Drexel Hamilton raises to "buy," saying
Trump's stated aim of increasing size of navy's fleet will act as
meaningful mid-term catalyst to company's sales
(Reporting by Abdul Nishad CK, Muvija M, Tenzin Pema and Geetha Panchaksharam in Bengaluru)
Stocks treated in this article : Amedisys Inc
, LifePoint Health Inc
, American Axle & Manufact. Holdings, Inc.
, BorgWarner Inc.
, Commercial Metals Company
, Lear Corporation
, Lockheed Martin Corporation
, Constellation Brands, Inc.
, Universal Health Services, Inc.
, UnitedHealth Group Inc
, United States Steel Corporation
, HealthSouth Corp
, Magna International Inc.
, American Water Works Company Inc
, HCA Holdings Inc
, Delphi Automotive PLC
, SunPower Corporation
, Kansas City Southern
, Tenet Healthcare Corp
, Adient PLC