UBS Reshapes Chemicals, Ciena Gets Massive Upgrade

UBS analyst Joshua Spector moved across the materials sector in a sweep of calls. He cut LyondellBasell to Hold from Buy, slashing the target to $73 from $82. He also trimmed Dow Inc. to Hold, lowering the target to $37 from $39. Both chemicals giants face margin pressure in a sluggish global cycle.

The UBS upgrade steal the show, however. Ciena Corporation got a dramatic target price lift to $508 from $285 — a 78% jump — as analyst David Vogt turned bullish on the networking hardware maker. Ciena's market cap sits near $75.8 billion. Short interest is a modest 3.1% of free float. That low short positioning leaves little friction for a rally.

lululemon athletica drew two separate downgrades in quick succession. UBS and Telsey Advisory Group both cut to Hold. Telsey slashed the price target to $122 from $175. The apparel brand faces slowing North American demand. Short interest at 6.2% of free float has room to grow if sentiment sours further.

On the consumer side, Walmart saw its consensus target tick up to $137.95. Separately, Medtronic saw its target trimmed to $98.58, reflecting caution in medtech ahead of a challenging reimbursement environment.