In this article, we discuss the 5 stocks receiving downgrades from analysts. If you want to see more such stocks on the list, go directly to Analysts Are Downgrading These 10 Stocks.
05. Veeva Systems Inc. (NYSE:VEEV)
Number of Hedge Fund Holders: 38
On June 28, Morgan Stanley analyst Craig Hettenbach adopted a less optimistic perspective on Veeva Systems Inc. (NYSE:VEEV), attributing it to potential competition from Salesforce CRM. Hettenbach downgraded Veeva Systems Inc. (NYSE:VEEV) rating from equal-weight to under-weight, signaling a less favorable outlook for the company’s performance. Additionally, he established a price target of $181 per share, indicating a projected decline of over 7.5% from the current value. This downgrade reflects Hettenbach’s concerns about the impact of competition and suggests a more cautious stance on Veeva Systems Inc. (NYSE:VEEV) investment potential.
TimesSquare U.S. Mid Cap Growth Strategy made the following comment about Veeva Systems Inc. (NYSE:VEEV) in its Q4 2022 investor letter:
“Veeva Systems Inc. (NYSE:VEEV), a supplier of cloud solutions to the global life sciences industry, declined by -2%. Their fiscal third quarter results were solid and short-term guidance was reiterated. Fiscal 2023 billings guidance was reduced due to foreign exchange translations. The company announced they will not renew their partnership contract with Salesforce.com when it ends in 2025 and instead move to its own platform. This is expected to result in cost savings.”
04. Citizens Financial Group, Inc. (NYSE:CFG)
Number of Hedge Fund Holders: 42
Following the Federal Reserve’s annual bank stress tests results on June 29, J.P. Morgan analyst Vivek Juneja decided to revise his Citizens Financial Group, Inc. (NYSE:CFG) rating. Previously categorized as overweight, Citizens Financial Group, Inc. (NYSE:CFG) has now been downgraded to a neutral rating by Juneja. This decision comes as a direct consequence of the stress test outcomes, leading J.P. Morgan to reconsider its stance on the company’s investment potential. By adjusting its recommendation, J.P. Morgan aims to align their analysis more closely with the current assessment of Citizens Financial Group, Inc. (NYSE:CFG) overall financial strength.
03. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Number of Hedge Fund Holders: 54
On June 28, following the issuance of a Complete Response Letter by the FDA for the higher dosage of Eylea, a treatment for age-related macular degeneration, Canaccord downgraded Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) from a buy rating to a hold rating. This downgrade comes as a result of the unexpected requirement for a longer review process indicated in the letter. Canaccord’s decision reflects a revision in their assessment of Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) investment potential in light of the regulatory setback and the extended timeline for the higher dosage of Eylea.
02. RH (NYSE:RH)
Number of Hedge Fund Holders: 59
On June 29, Loop Capital analyst Anthony Chukumba made a notable adjustment concerning RH (NYSE:RH). Chukumba downgraded the stock from Buy to Hold and established a revised price target of $300. This change deviates from his prior rating of Buy and a price target of $370. Telsey Advisory Group had also downgraded RH (NYSE:RH) from Outperform to Market Perform but simultaneously raised the price target from $310 to $330. These recent actions by analysts indicate a shift in their assessments of RH (NYSE:RH) investment prospects. The downgrades reflect a more cautious stance on the stock, with differing views on the revised price targets as analysts reassess the company’s future performance.
01. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 73
Credit Suisse downgraded Pfizer Inc. (NYSE:PFE) from an outperform rating (buy) to a neutral rating (hold) on June 29. The price target has also been lowered from $47 per share to $40 per share. The analysts at Credit Suisse acknowledge that Pfizer’s valuation is attractive, and they appreciate the company’s high dividend yield compared to its peers. However, they believe that Pfizer Inc. (NYSE:PFE) will face challenges in keeping pace with its competitors in the pharmaceutical industry. This downgrade reflects Credit Suisse’s revised outlook on Pfizer Inc. (NYSE:PFE) ability to maintain its competitive position in the market.
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