In this article, we will take a look at the 10 most important stock analyst ratings to watch.
Analysts recently revised their ratings for notable stocks, including Marvell Technology, Inc. (NASDAQ:MRVL), Spotify Technology S.A. (NYSE:SPOT) and Sonos, Inc. (NASDAQ:SONO).
Shares of Marvell and Sonos hit a new 52-week low after analysts turned bearish on them. On the other hand, Spotify shares rose over 7 percent after receiving an upgrade. However, those gains were offset in the early trading Thursday, June 16, following rumors that Spotify is planning to cut its hiring by 25 percent amid an uncertain economic environment.
Many other stocks, including footwear company Skechers U.S.A., Inc. (NYSE:SKX) and California-based real estate investment trust Digital Realty Trust, Inc. (NYSE:DLR), also came into the spotlight after analysts updated their recommendations for them.
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Most Important Stock Analyst Ratings to Watch
10. Comtech Telecommunications Corp. (NASDAQ:CMTL)
Number of Hedge Fund Holders: 9
Jefferies downgraded Comtech Telecommunications Corp. (NASDAQ:CMTL) from “Buy” to “Hold” on Wednesday, June 15, 2022. The research firm also slashed its price target for the stock from $32 share to $10 per share.
The downgrade came just a few days after the company’s mixed financial results for Q3. Comtech Telecommunications Corp. (NASDAQ:CMTL) reported adjusted earnings of 6 cents per share for its fiscal third quarter, matching expectations. However, its quarterly revenue of $120.38 million fell short of the consensus of $122.44 million.
In a research note to investors, Jefferies analyst George Notter said Comtech Telecommunications Corp. (NASDAQ:CMTL) is experiencing delays in certain 911 projects. Notter added that the company’s recovery would take longer than he previously believed.
9. Camtek Ltd. (NASDAQ:CAMT)
Number of Hedge Fund Holders: 16
Camtek Ltd. (NASDAQ:CAMT) recently received a downgrade from B. Riley. The research firm trimmed its ratings for the metrology and inspection equipment maker from “Buy to “Neutral.”
B. Riley analyst Craig Ellis also downgraded eight other stocks in the semiconductor sector, citing fading demand and increasing input costs. Ellis referred to PHLX Semiconductor Sector Index (SOX), which has dropped more than 30 percent so far in 2022. He also warned about a challenging second half amid a record drop in the U.S. consumer sentiment driven by consistently high inflation.
8. Cullen/Frost Bankers, Inc. (NYSE:CFR)
Number of Hedge Fund Holders: 19
Shares of Cullen/Frost Bankers, Inc. (NYSE:CFR) rose over three percent on Wednesday, June 15, 2022, after JPMorgan upgraded the Texas-chartered bank from “Underweight” to “Overweight.”
The research firm also lifted its price target for Cullen/Frost Bankers, Inc. (NYSE:CFR) from $143 per share to $155 per share. JPMorgan analyst Steven Alexopoulos referred to the bank’s improving client satisfaction metrics. Alexopoulos said Cullen/Frost is among a handful of traditional financial institutions to outperform neo-banks in terms of overall customer satisfaction.
Like Cullen/Frost Bankers, Inc. (NYSE:CFR), analysts also updated their ratings for Marvell Technology, Inc. (NASDAQ:MRVL), Spotify Technology S.A. (NYSE:SPOT) and Sonos, Inc. (NASDAQ:SONO).
7. Robinhood Markets, Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders: 19
Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) hit a new 52-week low of $6.87 on Wednesday, June 15, 2022, following a downgrade from Atlantic Equities. The research firm lowered its ratings for the financial services company from “Neutral” to “Underweight” and cut its price target for the stock from $15 per share to $5 per share.
Atlantic Equities analyst John Heagerty expressed concerns over declining sales trends. Heagerty pointed to the company’s monthly active users, which have been dropping since the second quarter of 2021.
In a research note to investors, Heagerty said that average revenue per user has plummeted 62 percent from its peak in the first quarter of 2021. He added that Robinhood Markets’, Inc. (NASDAQ:HOOD) user engagement is expected to drop further with users reverting to pre-pandemic behavioral trends.
6. Continental Resources, Inc. (NYSE:CLR)
Number of Hedge Fund Holders: 20
Wells Fargo recently downgraded Continental Resources, Inc. (NYSE:CLR) from “Overweight” to “Equal Weight” and set a price target of $82 per share for the Oklahoma-based oil producer.
Wells Fargo analyst Nitin Kumar referred to an acquisition proposal from the Hamm Family to buy all outstanding shares of Continental Resources, Inc. (NYSE:CLR) for $70 apiece. Kumar doesn’t anticipate any higher bid for Continental Resources. However, he sees the latest development as a way for the Hamm family to follow a differentiated policy in the United States shale without being obligated to public equity markets.
On the other hand, Continental Resources, Inc. (NYSE:CLR) said that its board has yet to review the proposal. The company plans to make a special committee to decide on the offer.
5. Skechers U.S.A., Inc. (NYSE:SKX)
Number of Hedge Fund Holders: 28
Shares of Skechers U.S.A., Inc. (NYSE:SKX) closed higher on Wednesday, June 15, 2022, after receiving an upgrade from Argus. The research firm improved its ratings for the footwear company from “Hold” to “Buy” and set a price target of $44 per share for the stock.
Argus analyst John Staszak believes that Skechers’ supply-chain measures and strong brand would likely boost its profit and sales over the next two years. Staszak also lifted his fiscal 2022 and fiscal 2023 earnings projections for the company by 5 cents each to $3 per share and $3.75 per share, respectively. The revised earnings projections reflect new products, improved margins, and growth across its online, retail and wholesale channels.
4. Sonos, Inc. (NASDAQ:SONO)
Number of Hedge Fund Holders: 30
Morgan Stanley downgraded Sonos, Inc. (NASDAQ:SONO) from “Overweight” to “Equal Weight” and cut its price target for the maker of the audio products from $38 per share to $28 per share.
Morgan Stanley analyst Katy Huberty said the spending intentions of high-end consumers have started to wane, with overall consumer confidence at a decade low and inflation at a 40-year high. Referring to a survey, Huberty said most respondents expect to limit spending in the coming months due to inflationary pressures.
3. Digital Realty Trust, Inc. (NYSE:DLR)
Number of Hedge Fund Holders: 31
Digital Realty Trust, Inc. (NYSE:DLR) recently received an upgrade from Deutsche Bank. The research firm improved its ratings for the California-based real estate investment trust from “Hold” to “Buy.”
Deutsche Bank analyst Matthew Niknam thinks that Digital Realty Trust, Inc. (NYSE:DLR) is well set to capitalize on several secular tailwinds like data growth and digital transformation across businesses.
2. Spotify Technology S.A. (NYSE:SPOT)
Number of Hedge Fund Holders: 49
Shares of Spotify Technology S.A. (NYSE:SPOT) jumped over seven percent on Wednesday, June 15, 2022, after Wells Fargo upgraded the Swedish music streaming platform from “Underweight” to “Equal Weight.”
The research firm also raised its price target for Spotify Technology S.A. (NYSE:SPOT) from $101 per share to $124 per share, saying the company could be more profitable than previously thought. Wells Fargo analyst Steven Cahall seemed particularly impressed by Spotify’s recent investor day, where the company laid out plans to improve margins.
Cahall now anticipates a profit margin of 27.1 percent for 2023, compared to his previous projection of 26.3 percent. He believes that gross margin in music and podcasting would likely be driven by Spotify’s investments to boost engagement and monetization.
1. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 63
Shares of Marvell Technology, Inc. (NASDAQ:MRVL) plummeted to a new 52-week low after B. Riley lowered its ratings for the Delaware-based semiconductor company from “Buy” to “Neutral,” citing fading demand and increasing input costs.
B. Riley analyst Craig Ellis referred to PHLX Semiconductor Sector Index (SOX), which has dropped more than 30 percent so far in 2022. He also warned about a challenging second half amid a record drop in the U.S. consumer sentiment driven by consistently high inflation.
Marvell Technology, Inc. (NASDAQ:MRVL) shares are now down about 48 percent on a year-to-date basis, including the latest drop in its share price.
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Disclosure: None. 10 Most Important Stock Analyst Ratings to Watch is originally published on Insider Monkey.
