Perfect Timing or Value Trap?
Considering the string of recent upgrades, should you turn bullish now to get ahead of the curve
That’s the question a lot of investors are asking themselves after one reading positive note after another over the past few days.
Following are just a handful that caught our attention:
After maintaining a ‘Neutral’ rating on JPMorgan stock since April 2005, UBS upgraded JPMoragn to ‘Buy’ partly due to signs of economic improvement such as stabilzing consumer credit.
(Fast Money Executive Producer writes about the upgrade in depth in his blog. Click here to read 'Analyst Finally Says Buy JPMorgan After 5 Yrs')
Goldman Sachs added ag giant Monsanto to its Conviction Buy List and raised its price target to $65 saying farmers are willing to pay a slight premium for Monsanto herbicides as long as the premium isn't too high.
Oppenheimer recently upgraded Citi from ‘Perform’ to ‘Outperform’ citing the improved outlook for consumer credit in a recovering economy.
Taken on their own they look like single stock stories but taken together they could be a referendum on the state of the recovery.
What should you make of it?
It seems the sell-off has allowed analysts to make calls that they missed over the last 6 months, muses Guy Adami. I’m not sure it’s a referendum on the recovery so much as analysts playing catch-up.
A lot of analysts missed the boat in March and April, echoes Joe Terranova. That’s what I think the upgrades are all about.
If you're looking for a trade, of all the names above, I like JPMorgan a lot says Karen Finerman. It’s a premiere franchise and I think they do well going forward.
At 16 times I think Monsanto is a value, says Tim Seymour.
I’m bullish both Monsanto and JPMorgan, adds Jon Najarian.
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Trader disclosure: On June 2, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (SWN), (GLD), (IPSU), (RSX), (PFE), (TER), (APA), (AXP), (BMO), (BBY), (DIS), (XCO), (AAPL), (CVS), (IPI), (TEVA), (FXB); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT); Kelly Owns (FXE) Calls; Kelly Owns (IBM) Calls; Kelly Owns (STD) Calls; Kelly Owns (NBG) Calls; Jon Najarian Owns (GS), (JPM), (CAM), (BP); Finerman’s Firm Owns (AAPL); Finerman Owns (BAC); Finerman’s Firm Owns (BAC); Finerman Owns (BBY); Finerman’s Firm Owns (BBY); Finerman Owns (BP) Calls; Finerman’s Firm Owns (GOOG); Finerman’s Firm Owns (GS) Calls; Finerman Owns (HPQ); Finerman’s Firm Owns (HPQ); Finerman Owns (JPM) Calls; Finerman’s Firm Owns (JPM); Finerman Owns (RIG) Call, Puts & Stock
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