On Friday morning, there were several big-name analyst moves that were announced. Below are the two most important analyst moves for mutual fund investors.
BofA/Merrill Lynch Downgrades Google
Analysts at Merrill Lynch downgraded internet-juggernaut Google (GOOGL) from a “Buy” to a “Neutral” rating, also lowering its price target from $600 to $580 a share. The firm cited a lack of product catalysts and increased regulatory risk as some of the reasons behind the downgrade.
GOOGL is down 5.11% YTD.
Mutual Funds to Watch
For investors seeking exposure to Google, a mutual fund could be a good alternative to investing directly in the stock. Below are the three mutual funds that currently have the largest stakes in GOOGL.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| FCNTX | Fidelity Contrafund | 3.42% |
| PRGFX | T. Rowe Price Growth Stock | 3.08% |
| FDGRX | Fidelity Growth Company | 2.29% |
Goldman Sachs Upgrades Northrop Grumman
Analysts at Goldman Sachs upgraded defense-contractor Northrop Grumman (NOC) to their “Conviction Buy” list, also raising their price target from $163 to $165 a share. The firm cited that the company’s position as the Pentagon’s largest subcontractor and development of its Joint Strike Fighter program as some of the reasons behind the upgrade.
Northrop Grumman also stole the headlines on Friday morning after its board authorized the repurchase of an additional $3 billion worth of stock, sending shares upwards of 5.5% on the day.
NOC is up 29.05% YTD.
Mutual Funds to Watch
For investors seeking exposure to NOC, a mutual fund investment could be a good alternative. Below are three mutual funds that have the largest stakes in NOC.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| VDIGX | Vanguard Dividend Growth | 1.72% |
| MBDVX | BlackRock Equity Dividend | 1.54% |
| MEIAX | MFS Value | 0.87% |