Factbox: Wall St. analysts’ calls on U.S. stocks after Trump win
(Reuters) – Republican Donald Trump became the 45th president of the United States on Tuesday, after a hard-fought race with Democrat Hillary Clinton.
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 SP 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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Related factbox:
U.S. Research Roundup: [RCH/US]
SP 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
DOWNGRADES
Auto Parts Suppliers
** Magna International MGA.N MG.TO, Lear Corp LEA.N, Delphi Automotive
DLPH.N, BorgWarner Inc BWA.N, American Axle AXL.N, Adient ADNT.N:
BofA Merrill cuts to “underperform” rating, citing greater risk of change
with respect to trade and NAFTA
Healthcare Services
** LifePoint Health Inc LPNT.O: BofA Merrill cuts to “underperform” from
“neutral”
** Universal Health Services Inc UHS.N, Tenet Healthcare Corp THC.N: BofA
Merrill cuts to “neutral” from “buy”
** UnitedHealth Group Inc UNH.N, HealthSouth Corp HLS.N, HCA Holdings Inc
HCA.N and Amedisys Inc AMED.O: Mizuho downgrades to “neutral” from “buy”
on extreme risk of Obamacare being repealed or replaced
Utilities
** American Water Works Co Inc AWK.N: 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
Renewable Energy
** SunPower Corp SPWR.O: 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 STZ.N: 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 KSU.N: BofA Merrill cuts to “neutral” from “buy”
and removes from U.S. 1 list; KSU generates more than 40 pct of its revenue
from Mexico
UPGRADES
Steel Sector
** U.S. Steel Corp X.N, Commercial Metals Co CMC.N: Jefferies upgrades
to “buy” rating, saying industry should benefit from Trump’s protectionist
trade policy
** Commercial Metals CMC.N: BofA Merrill raises to “buy” from
“underperform,” given increased likelihood of protectionist action and
infrastructure stimulus spending
Defense Sector
** Lockheed Martin Corp LMT.N: 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)