In this article, we discuss the 5 stocks receiving price-target cut from analysts. If you want to see more such stocks on the list, go directly to Analysts Are Cutting Price Targets of These 10 Stocks.
05. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Number of Hedge Fund Holders: 56
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) specializes in advancing and distributing treatments designed for individuals grappling with severe and potentially fatal uncommon illnesses and medical conditions. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) 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. (NASDAQ:BMRN) 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. (NASDAQ:BMRN) from $120 to $110.
Aristotle Atlantic Large Cap Growth Strategy made the following comment about BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) 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. (NYSE:BLK) 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. (NYSE:BLK) offers advisory services and global risk management solutions. On July 3, JPMorgan lowered its price target on BlackRock, Inc. (NYSE:BLK) 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. (NYSE:BLK) 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 (NYSE:AMT) 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 (NYSE:AMT) 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. (NYSE:FIS) to outperform the market or its industry peers.
Weitz Partners III Opportunity Fund made the following comment about Fidelity National Information Services, Inc. (NYSE:FIS) 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. (NYSE:NKE) 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. (NYSE:NKE) 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. (NYSE:NKE) 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. (NYSE:NKE) 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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