AngioDynamics (NASDAQ: ANGO), which we covered last week, received an upgrade from Raymond James, an analytic firm, this week. The stock soared to $19 at one point, its highest mark since 2015. It now trades at our suggested buy-up-to price of $18 and has gained about 9% this week.

We appreciate the Raymond James upgrade, and we like the stock, we see no fundamental change to the company since last week. We are keeping the suggested buy-up-to price at $18 at this time. This makes the stock a hold at its current price level.

This does not mean that we don’t think the stock can go up more. Rather, this means that in light of a volatile market and the fact that our readers should have already purchased shares at a lower entry price, we see no need to chase the stock at this time.

Tariffs in the News Again

Turning our attention to the broader market, this week, President Trump has announced a new list of some 1,300 goods made in China that he has asked the Office of the U.S. Trade Representative to consider for tariffs.

On the other side, China has announced a tariff list of more 106 new goods, worth up to $50 billion a year, made in the U.S. On Monday, it already enacted tariffs on 128 American goods—mostly foods. There’s no implementation date set for the new list. The U.S. on the other hand has enacted tariffs on solar panels, washing machines, and steel and aluminum.

We are not in a full-blown trade war yet, but both sides are raising the stakes. So far, there has been no meaningful progress in negotiations. China has made it clear that it will not be bullied, and Trump has also continued to talk tough.

More at Stakes Than Tariffs

The president is likely using tariffs as leverage to get China to engage in negotiation about broader issues, including the protection of U.S. intellectual property (IP). China is implementing its Made in China 2025 initiative, part of which calls for China to devote massive amounts of resources to significantly develop its domestic semiconductor manufacturing capacity. In other words, China, which has long been accused of appropriating American IP—including forcing American companies to hand over their technologies in exchange for receiving approval to do business in the huge Chinese market—could seriously threaten U.S. dominance in those high-tech areas, hurting a lot of U.S. businesses in the process.

We expect the two sides to eventually negotiate and reach an agreement on tariffs and IP, but how long it will take is anyone’s guess.

Investors will likely to sweat for a bit as the rhetoric heats up. However, at the end of the day, we believe both sides understand a trade war would benefit no one. Unfortunately, China appears to sit in a superior position as far as negotiations go. We expect U.S. lobbyists and business groups will ramp up pressure on the administration to not push the envelope too far. Meanwhile, Chinese president Xi Jinping recently consolidated political power further and will likely not face much political pressure.

Eventually, President Trump may have to accept whatever Chinese concession he can get, something that will allow him to reduce the tension but claim victory.