In this article, we will discuss the 10 stocks whose price targets were recently trimmed by analysts. If you want to see more such stocks on the list, go directly to Analysts Are Cutting Price Targets of These 10 Stocks.
U.S. stocks inched higher on Wednesday morning after the latest wholesale prices data indicated a potential drop in inflation. The data showed that wholesale prices in the U.S. decreased 0.5 percent in December, against the consensus forecast calling for a 0.1 percent drop. The positive data sent all three major U.S. indices into the green territory after the opening bell today. However, later in the day, equities paired gains and markets closed in the red. Part of the reason why the markets fell was St. Louis Fed President James Bullard’s comments, who, during an interview with The Wall Street Journal, said that the Fed should keep rapidly raising interest rates.
Meanwhile, notable stocks, including Wells Fargo & Company (NYSE:WFC), Bank of America Corporation (NYSE:BAC) and Tesla, Inc. (NASDAQ:TSLA), came into the spotlight after receiving price-target cuts from analysts.
Wells Fargo & Company (NYSE:WFC) and Bank of America Corporation (NYSE:BAC) received the price-target cuts following their recent earnings. On the other hand, BofA revised its price target for Tesla, Inc. (NASDAQ:TSLA), citing demand concerns and headwinds like intensifying competition.
Check out the remaining article to see some other stocks whose price targets were recently cut by analysts.
10. Boston Properties, Inc. (NYSE:BXP)
Number of Hedge Fund Holders: 29
Boston Properties, Inc. (NYSE:BXP) is best known for its premier workplaces across major cities in the U.S. Its tenants include the U.S. government and famous enterprises like Salesforce.com and Biogen. Its portfolio also has some residential and retail properties.
The Massachusetts-based real estate investment trust (REIT) recently received a price-target cut from Truist. The research firm lowered its price target for Boston Properties, Inc. (NYSE:BXP) from $85 per share to $82 per share on Tuesday, January 17.
Truist analyst Michael Lewis expects a drop in rents in the company’s core markets over the next couple of years. Lewis believes the decline will impact the key operations of Boston Properties, Inc. (NYSE:BXP). Nevertheless, the analyst kept his “Hold” rating for the stock.
9. AutoNation, Inc. (NYSE:AN)
Number of Hedge Fund Holders: 33
Morgan Stanley recently turned bearish on AutoNation, Inc. (NYSE:AN), citing rising interest rates and decreasing vehicle prices. Analyst Adam Jonas downgraded the automotive retailer from “Equal-Weight” to “Underweight” and trimmed his price target for AN stock from $104 per share to $96 per share on Tuesday, January 17.
Jonas thinks dropping prices and affordability factors would weigh on the business of AutoNation, Inc. (NYSE:AN). He was also partially moved by the disappointing financial performance of used-car retailer CarMax last month.
Last week, Wells Fargo also downgraded AutoNation, Inc. (NYSE:AN) from “Overweight” to “Equal-Weight,” citing normalizing gross margins and falling prices.
8. First Republic Bank (NYSE:FRC)
Number of Hedge Fund Holders: 39
Maxim analyst Michael Diana slashed his price target for First Republic Bank (NYSE:FRC) from $200 per share to $185 per share on Tuesday, January 17.
While Diana acknowledged the bank’s better-than-expected Q4 results, he pointed towards a drop in its net interest margin. The analyst also reduced his 2023 earnings expectations to $6.65 per share from $7.50 per share, citing lower net interest margin growth.
First Republic Bank (NYSE:FRC) released its fourth-quarter results on Friday, January 13. The bank reported earnings of $1.88 per share, down 6.9 percent over the year-ago period but above expectations of $1.80 per share. The quarterly revenue of $1.4 billion was also in line with the consensus.
However, its net interest margin for Q4 stood at 2.45 percent, down from 2.71 percent in the prior quarter.
7. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Number of Hedge Fund Holders: 45
Morgan Stanley trimmed its price target for Chipotle Mexican Grill, Inc. (NYSE:CMG) from $1,847 per share to $1,664 per share on Tuesday, January 17.
Analyst Brian Harbour thinks limited sales catalysts would affect the stock’s performance this year. Harbour also downgraded Chipotle Mexican Grill, Inc. (NYSE:CMG) from “Overweight” to “Equal-Weight.”
Like Chipotle Mexican Grill, Inc. (NYSE:CMG), analysts also recently slashed their price targets for Wells Fargo & Company (NYSE:WFC), Bank of America Corporation (NYSE:BAC) and Tesla, Inc. (NASDAQ:TSLA).
6. Illumina, Inc. (NASDAQ:ILMN)
Number of Hedge Fund Holders: 49
Canaccord analyst Kyle Mikson decreased his price target for Illumina, Inc. (NASDAQ:ILMN) from $330 per share to $300 per share on Tuesday, January 17. The research firm was primarily moved by Illumina’s disappointing outlook for 2023.
Illumina, Inc. (NASDAQ:ILMN) recently projected earnings in the range of $1.25 – $1.50 per share for fiscal 2023, well below analysts’ average estimate of $2.67 per share. In addition, the biotechnology company expects sales growth between 7 – 10 percent for the same period, against the consensus estimate calling for a 10 percent growth.
Separately, investment management firm Ensemble Capital Management also talked about Illumina, Inc. (NASDAQ:ILMN) in its 2022 annual investor letter, stating:
“Illumina, Inc. (NASDAQ:ILMN) (5.17% weight in the Fund): Illumina’s stock price declined 44.87% during the Fund’s fiscal year, detracting 2.01% from relative performance vs the S&P 500. In addition to extraordinary strength in the US dollar detracting from growth in their significant foreign revenue, as well as COVID lockdowns limiting sales in China, the company’s already closed acquisition of the cancer test maker GRAIL was thwarted by European Union After paying approximately $8 billion to acquire GRAIL despite EU regulator’s warning that the deal may violate antitrust rules, Illumina will likely need to divest their ownership of the company taking a loss of nearly $4 billion as estimated by the company.”
Click to continue reading and see Analysts Are Cutting Price Targets of These 5 Stocks.
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Disclosure: None. Analysts Are Cutting Price Targets of These 10 Stocks is originally published on Insider Monkey.