Analysts Are Cutting Price Targets of These 10 Stocks

Published July 6, 2023 at 11:41 am EDT Updated September 7, 2026 at 11:59 am EDT

In this article, we will discuss the 10 stocks whose price targets were recently trimmed by analysts.

The upcoming announcement from the Federal Reserve on July 5 is expected to shed light on the perplexing discussions that occurred during their June meeting, leaving the financial industry in a state of confusion. Despite the fact that inflation did not decrease as rapidly as predicted, the Federal Open Market Committee made the surprising decision to pause its string of interest rate hikes, which had been implemented consistently over a period of 15 months. Adding to the intrigue, policymakers revealed their forecast of two additional rate increases for the remainder of the year, surpassing the initial expectations. This unforeseen turn of events has left investors scrambling for answers, eagerly awaiting the Federal Reserve’s explanation and insight into their decision-making process. According to Bloomberg, The clarification from the Federal Reserve will be crucial in understanding the reasoning behind their divergence from the expected course of action and the potential implications for the financial markets. As market participants eagerly analyze the forthcoming details, they hope to gain a deeper understanding of the factors considered by the Federal Reserve and the potential impact on future economic conditions.

Despite the growing risks, prominent bond managers, including Brandywine Global Investment Management, Columbia Threadneedle Investments, and Vanguard Group Inc., continue to hold a positive outlook on the US government debt market. They maintain their bullish stance, expecting a robust rally in fixed-income assets. However, this optimistic view faces challenges as the economy demonstrates resilience, potentially diminishing the appeal of bonds, and with the Federal Reserve contemplating raising interest rates. These factors introduce uncertainty and test the conviction of these bond managers in their bullish position, reported Bloomberg.

According to Reuters, labeling this year’s equity market rally as solely driven by a few AI-powered stocks may misrepresent the situation and could actually be a source of strength. Despite the impressive 16% surge in the S&P500 and the tech-heavy Nasdaq’s best first half in 40 years, concerns over a potential recession led investors to dismiss the rebound as narrow and unsustainable. Critics argue that an equal-weight version of the S&P500 has only seen a modest 6% gain, while the remaining 490 stocks gained just 4%. The FANG+TM index, consisting of mega-cap tech stocks, soared by 75%. These stocks are among the largest globally, and their prominence in diversified portfolios makes them hard to overlook. Moreover, the estimated $7.1 trillion worth of indexed assets closely tracking the world’s most prominent benchmark index may not be overly concerned about the specifics of how the 16% gain was achieved.

The UK government and central bank find themselves heading towards a collision course as they grapple with the blame game surrounding the country’s economic challenges. The headline Consumer Price Index (CPI) for May remained at a concerning 8.7%, unchanged from the previous month. Meanwhile, core inflation, which excludes volatile energy, food, alcohol, and tobacco prices, reached its highest level in 31 years at 7.1%. The UK is facing a combination of economic woes, with stagnant economic growth and public debt surpassing 100% of GDP for the first time since March 1961. Shaan Raithatha, a senior economist at Vanguard, emphasized the severity of the situation, stating that the country is experiencing the “worst of both worlds” during an interview with CNBC’s “Squawk Box Europe.” The clash between the government and central bank highlights the need for a unified approach to addressing rising inflation, sluggish growth, and mounting debt. Criticism is directed towards the government’s policies, while pressure mounts on the central bank to implement measures to tackle inflationary pressures.

On the stocks market front, analysts are bearish on biotech firm BioMarin Pharmaceutical Inc. (NASDAQ: BMRN), financial services firm BlackRock, Inc. (NYSE:BLK), and the global sportswear company NIKE, Inc. (NYSE:NKE). Check out the complete article to see details of these and other stocks.

Analysts Are Cutting Price Targets of These 10 Stocks

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10. Mercury Systems, Inc. (NASDAQ:MRCY)

Number of Hedge Fund Holders: 20

On July 3, Mercury Systems, Inc. (NASDAQ:MRCY), a company specializing in advanced technology solutions for the aerospace and defense industry, received a price target cut from $45 to $40 by Royal Bank of Canada (RBC). Despite this adjustment, RBC maintained its sector performance rating for the company. The decision was based on concerns surrounding the uncertainty regarding the health of Mercury Systems, Inc. underlying business. Mercury Systems, Inc. operates in a dynamic industry, providing cutting-edge solutions for critical applications. RBC’s decision to lower the price target reflects its cautious stance due to the perceived uncertainty surrounding the company’s core business operations. The sector performance rating suggests that RBC expects Mercury Systems, Inc. performance to align with the overall sector performance without significant outperformance or underperformance.

Baron Discovery Fund made the following comment about Mercury Systems, Inc. in its Q1 2023 investor letter:

“We reduced our investment in Mercury Systems, Inc. (NASDAQ:MRCY) as it ran up on news that it was working with its Board of Directors to look at a potential sale of the company or other strategic alternatives.”

09. Dominion Energy, Inc. (NYSE:D)

Number of Hedge Fund Holders: 28

Dominion Energy, Inc. (NYSE:D) is an American energy company that produces and distributes energy. It has four operating segments – Dominion Energy Virginia, Gas Distribution, Dominion Energy South Carolina, and Contracted Assets. Dominion Energy Virginia generates, transmits, and distributes electricity to about 2.7 million residential, commercial, industrial, and governmental customers in Virginia and North Carolina.

On July 3, BMO Capital analyst James lowered the price target for Dominion Energy, Inc. to $59 from $63. The decision reflects a revision in the projected valuation for the company’s shares. This adjustment suggests that BMO Capital has revised its expectations for Dominion Energy, Inc. future performance.

Carillon Eagle Growth & Income Fund made the following comment about Dominion Energy, Inc. in its Q4 2022 investor letter:

“Dominion Energy, Inc. (NYSE:D) traded lower following the surprise announcement of the company’s strategic review. The company is likely to sell several business units, which will impact future earnings. As a result of earnings uncertainty, we decided to sell the stock.”

08. Alexandria Real Estate Equities, Inc. (NYSE:ARE)

Number of Hedge Fund Holders: 33

Alexandria Real Estate Equities, Inc. (NYSE:ARE) owns and manages advanced life science, agtech, and technology campuses in highly sought-after innovation hubs such as Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. On July 3, Steve Sakwa, an analyst from Evercore ISI Group, reiterated his positive outlook on Alexandria Real Estate Equities, Inc. by maintaining an Outperform rating on the stock. However, he made a revision to the price target, lowering it from $141 to $137. This adjustment suggests a revised expectation for the stock’s future performance.

Baron Real Estate Fund made the following comment about Alexandria Real Estate Equities, Inc. in its first quarter 2023 investor letter:

“Alexandria Real Estate Equities, Inc. (NYSE:ARE) is the leading landlord and developer for the life science industry. Alexandria is a best-in-class company with several competitive advantages including an irreplaceable life science office portfolio concentrated in the premier life science markets in the U.S. and deep customer relationships.

Alexandria is valued at a 6.4% implied capitalization rate versus recent life science real estate transactions that have been valued in the 4% to 5% range. Alexandria’s real estate is attractively valued at approximately $500 per square foot versus private market transactions for life science real estate in the $1,000 to $1,500 per square foot range.

The shares of Alexandria Real Estate Equities, Inc., the only pure-play publicly traded landlord and developer to the life science industry, declined in the first quarter of 2023, alongside most traditional office REITs…” (Click here to read the full text)

07. SBA Communications Corporation (NASDAQ:SBAC)

Number of Hedge Fund Holders: 42

SBA Communications Corporation (NASDAQ:SBAC) is a prominent company that owns and operates wireless communications infrastructure such as towers, buildings, rooftops and distributed antenna systems. They have an extensive portfolio of over 39,000 communication sites across 16 markets in the Americas, Africa, and the Philippines. It is recognized as one of the largest Real Estate Investment Trusts (REITs) based on market capitalization. On July 3, RBC lowered the price target for SBA Communications Corporation to $276 from $290. Despite the adjustment, RBC maintains its Outperform rating for the company. The revised price target suggests a revised expectation for the stock’s future valuation.

Baron Real Estate Fund made the following comment about SBA Communications Corporation in its first quarter 2023 investor letter:

“In the most recent quarter, we exited our investment in SBA Communications Corporation (NASDAQ:SBAC), a global wireless cell tower REIT that owns a portfolio of wireless tower sites heavily concentrated in the U.S. We had been long-term shareholders of SBA due to our respect for CEO Jeff Stoops, who we have known for several years. We believe Jeff has been an astute allocator of capital and has created tremendous shareholder value over the long term. Jeff will be retiring from SBA at the end of 2023.

We believe a series of issues are likely to temper SBA’s growth in the next few years, including higher debt refinancing costs, wireless carrier decommissioning, headwinds from the company’s Latin American operations, and perhaps foreign exchange headwinds. Our sense is that the company’s annual cash flow growth will decelerate from 14% in 2022 to just 3% in 2023 and remain at modest annual growth rates over the next few years. The company’s high leverage, approximately 6.9 times net debt to cash flow, will limit the company’s ability for share repurchases and external growth opportunities.”

06. Halliburton Company (NYSE:HAL)

Number of Hedge Fund Holders: 43

Halliburton Company (NYSE:HAL) is one of the largest oil and gas equipment companies in the world. Like several others, it is also headquartered in Houston, Texas. The firm’s offshore and subsea segment provides umbilicals, subsea chemical injection, and fluid injection, among other products and services. Josh Silverstein, an analyst at UBS, has decided to maintain a Buy rating on Halliburton as of July 3. However, there has been a decrease in the price target, which has been adjusted from $49 to $46.

Carillon Eagle Mid Cap Growth Fund made the following comment about Halliburton Company in its Q1 2023 investor letter:

“Halliburton Company (NYSE:HAL) provides equipment and services to the global energy industry. Investor concerns surrounding the impact that recent softness in crude oil and natural gas prices would have on the overall level of production activity weighed on the company’s stock in the quarter. However, the recent commitment by the Organization of the Petroleum Exporting Countries (OPEC) to reduce production to balance global supply and demand should support healthy levels of activity specifically within North American shale, where Halliburton is a market leader. Over the longer term, we believe the company also should lay a pivotal role in helping exploration and production companies navigate ongoing productivity declines.”

05. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)

Number of Hedge Fund Holders: 56

BioMarin Pharmaceutical Inc. specializes in advancing and distributing treatments designed for individuals grappling with severe and potentially fatal uncommon illnesses and medical conditions. BioMarin Pharmaceutical Inc. main business market includes specialty pharmacies and hospitals, as well as distributors and pharmaceutical wholesalers across the United States, Europe, Latin America, and other global regions.

Whitney Ijem, an analyst at Canaccord Genuity, has chosen to maintain a Hold rating on BioMarin Pharmaceutical Inc. as of July 3. However, there has been an adjustment to the price target, which has been revised from $110 to $104. The updated price target reflects a revised expectation for the stock’s future value. Also, in a research report released on July 3, Guggenheim lowered the target price for BioMarin Pharmaceutical Inc. from $120 to $110.

Aristotle Atlantic Large Cap Growth Strategy made the following comment about BioMarin Pharmaceutical Inc. in its Q1 2023 investor letter:

“BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) develops drugs with a focus on rare disease treatments. Its portfolio consists of several commercial products and multiple clinical and preclinical product candidates for the treatment of various diseases. The company’s Vimizim, Naglazyme and Aldurazyme drugs treat versions of the life-threatening genetic condition mucopolysaccharidosis (MPS), caused by a rare enzyme deficiency that prevents patients from metabolizing certain complex carbohydrates. Another drug, Kuvan, is approved to treat enzyme deficiency phenylketonuria (PKU). Additional medicines include Brineura and Palynziq.

We see BioMarin, anchored by their durable enzyme-based therapies, poised to grow from new indications, primarily Voxzogo, the first-approved treatment for Achondroplasia, and Roctavian, a drug awaiting FDA approval for the treatment of Severe Hemophilia A, with gene therapy and the ability to address a large chronically managed patient population. Additionally, the company has an early pipeline outside of these major indications in rare diseases within the usculoskeletal/metabolic, hematology, cardiovascular and CNS therapeutic focus areas.”

04. BlackRock, Inc. (NYSE:BLK)

Number of Hedge Fund Holders: 58

BlackRock, Inc. is an investment manager that caters to a wide range of clients, including institutional, intermediary, and individual investors such as insurance companies, pension plans for corporations, unions and public sectors, endowments, governments, charities, mutual funds, corporations, banks, sovereign wealth funds, official institutions, and public institutions. In addition to investment management, BlackRock, Inc. offers advisory services and global risk management solutions. On July 3, JPMorgan lowered its price target on BlackRock, Inc. from $780 to $770. Despite the adjustment, JPMorgan maintains an Overweight rating on the stock.

The London Company Large Cap Strategy made the following comment about BlackRock, Inc. in its first quarter 2023 investor letter:

“BlackRock, Inc. (NYSE:BLK)- BLK underperformed in Q1, but our conviction in BLK remains high based on the durability of its competitive position, an under-levered balance sheet, persistently strong profitability, and capital return. BLK has experienced some margin pressure on market-driven AUM declines, but has responded with cost control measures. We continue to view BLK as a well-run company that is likely to outperform the industry over the long term.”

03. American Tower Corporation (NYSE:AMT)

Number of Hedge Fund Holders: 65

American Tower Corporation (NYSE:AMT) is an American real estate investment trust company that owns and operates wireless and broadcast communications infrastructure around the world. On July 3, the Royal Bank of Canada (RBC) reduced its price target on American Tower Corporation from $241 to $233. Despite the adjustment, RBC maintains an Outperform rating on the stock. According to RBC’s analysis, the revised price target indicates a revised expectation for the stock’s future value.

Richie Capital Group made the following comment about American Tower Corporation in its Q1 2023 investor letter:

“American Tower Corporation (NYSE:AMT) (down -3.6%) – Shares of American Tower lagged in the quarter after a lackluster earnings report and a broader sell-off of in REIT’s. Rising interest rates have hampered the REIT sector as 1) income investors can now find comparable yields from U.S. treasuries, and 2) debt financing for real estate has become considerably more expensive.

In the fourth quarter earnings report, American Tower recorded a -$642 million impairment charge when VIL, American Tower’s largest customer in India, was unable to make their scheduled payments. Management views India as more of an opportunistic growth driver and commented that they are open to all possibilities, including a partial equity sale of the India business. India is a very attractive market long term due to favorable demographics and a growing need for data, but it is encouraging to see that management is clear eyed in assessing this new market.

Despite these temporary headwinds, American Tower’s core business is strong. Management anticipates double digit AFFO growth in 2023 driven by solid organic leasing trends across the global portfolio including a meaningful step up in U.S. and Canadaian organic tenant billings in 2023. Longer term, we believe the ever-expanding need for data will drive more tower demand and density. American Tower has an incredibly attractive business model supported by long-term contracts with large communications companies which include annual price escalators.”

02. Fidelity National Information Services, Inc. (NYSE:FIS)

Number of Hedge Fund Holders: 68

On July 3, David Koning, an analyst at Baird, decided to maintain an Outperform rating on Fidelity National Information Services, Inc. (NYSE:FIS) and lowered the price target from $80 to $75. The maintained Outperform rating indicates that Koning expects Fidelity National Information Services, Inc. to outperform the market or its industry peers.

Weitz Partners III Opportunity Fund made the following comment about Fidelity National Information Services, Inc. in its first quarter 2023 investor letter:

“The portfolio holdings most directly impacted by the bank failures of the first quarter were Charles Schwab and Fidelity National Information Services, Inc. (NYSE:FIS), both top detractors for the quarter. Banking software provider FIS’s shares were also collateral damage as investors looked to shed any exposure to the small and regional banks that FIS serves. This, after several quarters of underwhelming operating results, lands FIS as our top detractor for the fiscal year period as well. Our FIS experience has been disappointing to be sure. But having re-underwritten our investment thesis and lowered our business value estimate, we believe investors have exacted too steep a penalty on FIS shares. From this lowered price, we are optimistic that new management can reestablish credibility with investors and unlock value through the planned separation of the banking software and merchant services businesses.”

01. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 81

Jonathan Komp, an analyst at Baird, reiterated his positive outlook on NIKE, Inc. as of July 3. However, there has been a revision to the price target, which has been adjusted from $138 to $130. The adjusted price target reflects Komp’s revised expectation for the stock’s future value.

NIKE, Inc. released its quarterly earnings report on June 29th, revealing earnings of $0.66 per share for the quarter. Although this figure fell slightly below analysts’ consensus estimates of $0.68 per share, it is important to note that NIKE, Inc. maintained an impressive return on equity of 35.98%, which highlights its strong position in the market. Furthermore, the company achieved a net margin of 10.82%, indicating its ability to generate profit from its operations. In terms of revenue, NIKE, Inc. reported quarterly revenue of $12.80 billion, surpassing the consensus estimate of $12.58 billion. This represents a 4.9% increase compared to last year’s quarter, underscoring the company’s consistent growth in its top line.

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