Analysts Are Cutting Price Targets of These 10 Stocks

Published July 27, 2023 at 2:49 pm EDT Updated September 7, 2026 at 12:00 pm EDT

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

The US economy demonstrated a noteworthy surge in growth during the second quarter, expanding at an annualized rate of 2.4%. This acceleration comes as a positive surprise, especially considering the preceding three months had seen a pace of 2%, indicating a marked improvement in economic performance. The initial estimate from the Commerce Department, released on July 27, highlighted the remarkable resilience exhibited by both consumers and companies in the face of challenging conditions, particularly the impact of high interest rates. According to Bloomberg, a key driver of this growth was the robust performance of household spending, which surpassed earlier estimates. Despite concerns and uncertainties in the market, consumers showed remarkable confidence and continued to open their wallets, contributing significantly to the overall economic expansion. In contrast to some forecasts, consumer spending increased at a more substantial pace of 1.6% during this period, building on the strong momentum observed at the beginning of the year. Another crucial factor that contributed to the encouraging economic performance was the resilience demonstrated by businesses, with their investments remaining solid. Even with the backdrop of high interest rates, companies managed to maintain their confidence and commitment to expansion, fueling economic activity and job creation.

The latest data depicting a robust economic growth trajectory is likely to instill optimism and confidence among policymakers, businesses, and the general public. Amid concerns over a potential recession, this unexpected acceleration offers hope that the US economy can successfully navigate through challenging economic conditions and avoid a downturn. However, it is important to note that economic growth is subject to various factors, both domestic and global, which can influence its trajectory in the future. While the current data paints a positive picture, ongoing monitoring and prudent economic policies will remain crucial to sustain this growth momentum and ensure a stable and thriving economy in the long run.

Oil prices surged to $80 per barrel, the highest since April, driven by strong US economic growth forecasts, boosting oil demand expectations. However, there are concerns about potential price corrections due to technical factors, as crude oil is trading in overbought territory. The rally was led by the US benchmark, West Texas Intermediate (WTI), crossing the $80 mark, supported by speculation that the Federal Reserve is nearing the end of its monetary tightening cycle. The recent increase in oil prices has also been aided by supply cuts by the OPEC+ alliance, reducing the global supply glut. Nevertheless, the oil market’s future trajectory remains uncertain, influenced by various factors, including geopolitical developments and global energy demand, prompting close monitoring by market participants.

On July 27, on the stock market front, the Dow Jones Industrial Average experienced a rise, and it is now on track to tie its best winning streak ever recorded since 1897. The 30-stock index added 119 points, equivalent to a 0.34% increase. The S&P 500 also climbed by 0.69%, while the Nasdaq Composite showed a more substantial gain of 1.26%. According to CNBC, if the trend continues, the Dow will achieve a 14-day consecutive advance, matching its longest positive streak on record dating back to June 1897. The Dow Jones Industrial Average was established a little over a year earlier, in May 1896. The recent historic streak in the Dow can be attributed to several factors, including promising indications that the economy will avoid a recession, declining inflation data, and resilient corporate earnings. On July 27, Wall Street received further supporting evidence on all these fronts. In the second quarter, the Gross Domestic Product showed a rise of 2.4%, surpassing the economists’ expectations of a 2% increase, as per the polls conducted by Dow Jones. The report also indicated that price pressures are easing, with the personal consumption expenditures price index rising 2.6% in the second quarter. This figure is lower than the economists’ expectation of a 3.2% increase and is also a decline from the 4.1% rise observed in the previous quarter. These economic indicators contribute to the positive market sentiment and drive the Dow’s remarkable winning streak. However, despite this rally in Dow stocks, analysts are bearish on technology firms such as Microsoft Corporation (NASDAQ:MSFT) and Danaher Corporation (NYSE:DHR) alongwith biotech firm Biogen Inc. (NASDAQ:BIIB). Check out the complete article to see details of these and other stocks.

Analysts Are Cutting Price Targets of These 10 Stocks

10. Lulu’s Fashion Lounge Holdings, Inc. (NASDAQ:LVLU)

Number of Hedge Fund Holders: 3

Lulu’s Fashion Lounge Holdings, Inc. was established in 1996 and is based in Chico, California. It is an e-commerce retailer specializing in women’s clothing, shoes, and accessories. Lulu’s Fashion Lounge Holdings, Inc. product lineup includes a variety of items such as dresses, tops, bottoms, wedding dresses, intimates, sleepwear, swimwear, footwear, and accessories, all branded under the name Lulus. They primarily operate through their website, and mobile app, and engage customers through social media. Additionally, the company uses earned and paid media strategies, along with social media platforms, to reach its target audience. Lulu’s Fashion Lounge Holdings, Inc. predominantly caters to Millennial and Gen Z women. On July 26, Lulu’s Fashion Lounge Holdings, Inc. was downgraded to $4 from $5 by Baird analyst Mark Altschwager.

09. Alaska Air Group, Inc. (NYSE:ALK)

Number of Hedge Fund Holders: 32

Alaska Air Group, Inc. (NYSE:ALK) owns Alaska Airlines and Horizon Air. On July 26, while maintaining a positive outlook on the company, Stathoulopoulos has adjusted the price target for Alaska Air Group, Inc. to $58, down from the previous target of $65. In the second quarter of FY23, Alaska Air Group, Inc. reported a 7% year-over-year growth in operating revenue, reaching $2.84 billion, which surpassed the consensus of $2.77 billion. Passenger revenues also saw a 7% increase year-over-year, amounting to $2.6 billion. However, analyst Christopher Danely expressed concerns about Alaska Air’s guidance raise for FY23 capacity, which remained unchanged for CASM-ex (Cost per Available Seat Mile), given the softening U.S. domestic fares, expanding U.S. domestic capacity, and potential discrepancies in the company’s internal expense forecasting.

08. Nutrien Ltd. (NYSE:NTR)

Number of Hedge Fund Holders: 32

Nutrien Ltd. (NYSE:NTR) is an agricultural raw materials firm that sells urea, nitrates, and potash products. On July 26, HSBC analyst Santhosh Seshadri reiterated his position on Nutrien Ltd. as a Hold, but he revised the price target down from $81 to $72.

ClearBridge Investments made the following comment about Nutrien Ltd. in its Q3 2022 investor letter:

“However, we believe this is exactly the kind of environment that separates the highest-quality companies from their peers and allows them to strengthen their competitive positioning. For example, Nutrien Ltd., a Canadian fertilizer company, was a top contributor during the quarter. While the war in Ukraine and economic sanctions on Russia have significantly reduced the output of two of the world’s largest agricultural producers, Nutrien has benefited from a strong global agricultural cycle and from farmers seeking to increase their output and capitalize on higher agricultural prices.”

07. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 52

Texas Instruments Incorporated (NASDAQ:TXN) is a renowned semiconductor design and manufacturing company. Their historical significance in the electronics industry stems from their groundbreaking achievement of creating the first commercial silicon transistor in 1954. This technological milestone revolutionized electronics by providing a more efficient and reliable alternative to previous transistor technologies. As pioneers in the development of integrated circuits, commonly known as chips or microchips, Texas Instruments Incorporated played a vital role in the miniaturization of electronic components. This breakthrough paved the way for the growth of modern computing and communication devices, shaping the trajectory of technology in the 20th and 21st centuries.

According to the latest report from Mizuho Securities, issued on July 26, analyst Vijay Rakesh has made adjustments to the price target for Texas Instruments Incorporated, bringing it down to $181 from $185. This revision suggests that the analyst has reassessed the company’s potential valuation and arrived at a more conservative target compared to previous estimates. The decision to lower the price target may have been influenced by various factors, such as changes in the industry landscape, the company’s recent financial performance, or macroeconomic trends affecting the semiconductor sector.

06. Spotify Technology S.A. (NYSE:SPOT)

Number of Hedge Fund Holders: 59

In their recent research note issued on July 26, Pivotal Research lowered the target price on Spotify Technology S.A. (NYSE:SPOT) from $145 to $140. Despite the downward adjustment in the price target, the research firm maintained its “Hold” rating on the stock. This action suggests that Pivotal Research has revised its outlook for Spotify Technology S.A. valuation, projecting a slightly lower target price compared to its previous assessment. The decision to maintain the “Hold” rating indicates that, in the analysts’ view, the stock’s current performance is expected to be in line with market expectations, and they do not anticipate significant upside potential in the near term.

Baron Partners Fund made the following comment about Spotify Technology S.A. in its Q4 2022 investor letter:

“Spotify Technology S.A. (NYSE:SPOT) is a leading global digital music service offering on-demand audio streaming through paid premium subscriptions and an ad-supported model. Shares of Spotify were down on weakness in the company’s fourth quarter gross margin guide. We still view Spotify as a long-term winner in music streaming with potential to reach more than one billion active monthly users. Subscriber additions remain strong, price increases seem likely, and cost discipline has become a bigger focus.”

05. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 59

Verizon Communications Inc. (NYSE:VZ), commonly known as Verizon, is an American multinational telecommunication conglomerate. In the first quarter of 2023, the telecommunications firm reported an increase of 633,000 subscribers. On July 26, investment analysts at Raymond James revised the price target for Verizon Communications Inc. from $51 to $42. The research report also reaffirmed the brokerage’s outperform rating on the cell phone carrier’s stock. According to Raymond James’ target price, there is a potential upside of around 22% from Verizon Communications Inc. current price. This adjustment in the price target suggests that the analysts at Raymond James have reevaluated their outlook for Verizon Communications Inc. valuation, resulting in a more conservative target compared to their previous assessment. However, despite the reduction in the target price, the analysts still maintain a positive stance on the stock, expecting it to outperform the market.

04. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 65

On July 26, Argus, a research firm, lowered the price target for The Home Depot, Inc. (NYSE:HD) from $400 to $350 in their report. This revision indicates that Argus has reassessed their valuation outlook for The Home Depot, Inc., resulting in a more conservative price target compared to their previous estimate.

Madison Sustainable Equity Fund made the following comment about The Home Depot, Inc. in its second quarter 2023 investor letter:

“The Home Depot, Inc. (NYSE:HD) celebrates 30 years of giving back. Team Depot was created in 1993 as a way of organizing associates who were eager to volunteer in their communities. For 30 years, Team Depot associates have worked side by side with non-profits around the United States. Focus areas include spending time with the elderly and activities with at risk youth. Team Depot also improves the homes and lives of veterans and helps communities impacted by natural disasters.

During the quarter, Home Depot set a goal for battery-powered products to represent over 85% of outdoor lawn equipment sales in the U.S. and Canada by the end of fiscal 2028. Push lawn mowers and handheld leaf blowers and trimmers will run on rechargeable battery technology instead of gas. This will reduce 2 million metric tons of greenhouse gas emissions annually.”

03. Biogen Inc. (NASDAQ:BIIB)

Number of Hedge Fund Holders: 67

Biogen Inc. is a biotechnology company working on neurological and neurodegenerative diseases and their treatments. It is based in Cambridge, Massachusetts. Established in 1978, Biogen Inc. has been a trailblazer in the field of biotechnology, introducing several groundbreaking innovations. Their achievements include developing a diverse range of medicines aimed at treating multiple sclerosis, becoming the first company to receive approval for a treatment for spinal muscular atrophy, and collaborating on two treatments targeting a crucial aspect of Alzheimer’s disease pathology. On July 26, BofA revised the price target for Biogen Inc., reducing it from $320 to $310. This indicates that BofA’s analysts have reevaluated their assessment of Biogen Inc. valuation and arrived at a slightly lower target price compared to their previous estimate.

02. Danaher Corporation (NYSE:DHR)

Number of Hedge Fund Holders: 90

On July 26, Stifel analyst Daniel Arias reiterated his “Hold” rating on Danaher Corporation and has revised the price target downward from $250 to $240. This suggests that while the analyst maintains a neutral stance on the stock’s outlook, he has reassessed the company’s valuation and arrived at a slightly lower price target compared to his previous estimate.

Madison Sustainable Equity Fund made the following comment about Danaher Corporation in its second quarter 2023 investor letter:

“Danaher Corporation (NYSE:DHR) stock continued to move lower following another earnings downgrade on bioprocessing weakness. The weakness is caused by elevated inventories at large customers and funding issues from emerging biotech customers. We remain confident in Danaher’s strong competitive position providing innovative products to Life Science companies.”

01. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 289

On July 26, Citi analyst Tyler Radke reduced the price target for Microsoft Corporation from $425 to $420. This indicates that the analyst has reevaluated Microsoft Corporation valuation and arrived at a slightly lower target price compared to their previous estimate.

The Ithaka Group made the following comment about Microsoft Corporation in its second quarter 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) builds best-in-class platforms and provides services that help drive small business productivity, large business competitiveness, and public-sector efficiency. Microsoft’s products include operating systems, cross-device productivity applications, server applications, software development tools, video games, and business-solution applications. The company also designs, manufactures, and sells devices, including PCs, tablets, and gaming/entertainment consoles that all integrate with Azure, its cloud computing service. In the quarter Microsoft’s stock appreciated on the back of excitement surrounding the company’s positioning in the generative AI market and its ability to monetize the coming wave of corporate investment in supercomputing and AI.”

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