Notable Analyst Upgrades from Tuesday

On Tuesday, analysts upgraded some notable stocks. Below is a summary of some of those names.

Bed Bath & Beyond BBBY was upgraded from Neutral to Buy at Citigroup with a $67 price target. Reasons for the upgrade included an attractive valuation and improving differentiation. The stock was up two percent Tuesday after a breakout from a descending wedge pattern and is now testing a key level at $60.

Macy’s M was upgraded from Neutral to Buy at Citigroup with a $46 price target. As housing markets improve, Macy’s home merchandise division may see double digit gains this year according to the Associated Press.

The stock tested the bottom of its ascending channel only to successfully hold and has since gained more than nine percent. Macy’s finished Tuesday up nearly three percent.

Target TGT was upgraded from Neutral to Buy at Citigroup with a $72 price target. Target’s home line that the company rebranded to Threshold in 3Q 2012 will continue to do well on the back of housing market improvements.

Like Macy’s, the stock tested the bottom of its descending channel pattern only to get rewarded handsomely with a seven percent gain. Tuesday’s 2.5 percent move to the upside on reasonably heavy volume moved the stock above its descending channel. Investors will watch for confirmation of the breakout.

Ulta Salon, Cosmetics & Fragrance ULTA was initiated with an Outperform rating and a $120 price target at Credit Suisse. Large competitive advantages as well as outsized growth potential were cited in the report.

The stock is forming a wedge that has narrowed to a 1.7 percent range. The stock held its 50 day moving average successfully in recent tests making investors hopeful that Ulta will break out of the wedge to the upside. Ulta closed up 2.2 percent on Tuesday.

Despite disappointing revenue forecasts in Tuesday’s earnings report, Zynga ZNGA was upgraded from Underperform to Buy at Bank of America/Merrill Lynch. The firm cited valuation has the catalyst for the upgrade that placed the price target at $3.40.

The stock remains in a trading range after a drop of more than 70 percent since April. Despite an earnings report that beat expectations and a 7 percent move to the upside on Tuesday, Zynga could see more near-term upside before becoming a value trap, insiders warn.

Shares of Unitedhealth Group UNH were upgraded from Neutral to Buy at Goldman Sachs. It was also placed on the company’s conviction buy list with a price target of $68. Among the reasons cited, healthcare reform will benefit the company going forward.

Since reaching a January low of $51.36 the stock has gained 12.5 percent of value. Tuesday’s 3.5 percent moved to the upside sets it up to test its October high of $58.06.