Analysts are Downgrading These 10 Stocks

Published September 19, 2022 at 4:50 pm EDT Updated September 7, 2026 at 11:37 am EDT

In this article, we will take a look at the 10 stocks recently downgraded by analysts.

U.S. stocks opened lower on Monday, September 19, just ahead of the Federal Reserve’s meeting. Many expect the Federal Reserve to lift interest rates by at least 75 basis points. Analysts believe the expected tightening of monetary policy would further drag down the major stock market indices.

Many sector leaders are already facing the negative effects of inflation. For instance, FedEx Corporation (NYSE:FDX) recently announced disappointing preliminary financial results for its fiscal first quarter and renounced its full-year outlook, citing a slowdown in demand. Subsequently, several research firms turned bearish on FedEx Corporation (NYSE:FDX) following its cautions commentary related to decelerating economic growth.

In addition, analysts also recently lowered their ratings for Adobe Inc. (NASDAQ:ADBE), Huntsman Corporation (NYSE:HUN) and Infosys Limited (NYSE:INFY). Check out the complete article to see why analysts are downgrading these stocks.

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10. Kilroy Realty Corporation (NYSE:KRC)

Number of Hedge Fund Holders: 23

Kilroy Realty Corporation (NYSE:KRC) is a real estate investment trust (REIT) based in Los Angeles. It is primarily engaged in providing premium workplaces to various industries. The company’s shares fell over two percent in pre-market trading Monday, September 19, 2022, after receiving a downgrade.

Citi analyst Michael Bilerman lowered his ratings for Kilroy Realty Corporation from “Buy” to “Neutral,” citing macro-economic hurdles and slow office recovery. He also pointed towards office rents that are still below pre-pandemic levels.

Bilerman trimmed his price target for Kilroy Realty Corporation from $60 per share to $50 per share. Kilroy Realty stock has already lost nearly 30 percent of its value so far in 2022.

9. Arrow Electronics, Inc. (NYSE:ARW)

Number of Hedge Fund Holders: 24

Shares of Arrow Electronics, Inc. (NYSE:ARW) slid nearly four percent on Friday, August 16, 2022, after Wells Fargo downgraded the electronic components supplier from “Equal Weight” to “Underweight.”

Analyst Joseph Quatrochi thinks fading demand would further drag down the company’s earnings. Quatrochi also slashed his price target for Arrow Electronics, Inc. from $125 per share to $87 per share.

Separately, Arrow Electronics, Inc. last week announced that its board has granted permission to repurchase an additional $600 million worth of its common stock under the existing repurchase plan.

8. Infosys Limited (NYSE:INFY)

Number of Hedge Fund Holders: 24

Two market research firms recently turned bearish on Infosys Limited. The first one is Susquehanna, which lowered its ratings for the Indian tech giant from “Positive” to “Neutral” on Friday, September 16, 2022.

Susquehanna analyst James Friedman expressed concerns over demand challenges surrounding the IT industry. He also pointed towards the lack of big deals and increasing prospects of layoffs. Friedman cut his price target for Infosys Limited from $29 per share to $20 per share.

Moreover, Goldman Sachs analyst Sumeet Jain also decreased his ratings for Infosys Limited from “Buy” to “Sell” on Tuesday, September 13, 2022. Jain thinks that decelerating revenue growth is not mirrored in the current valuation of the stock.

7. International Paper Company (NYSE:IP)

Number of Hedge Fund Holders: 27

Shares of International Paper Company (NYSE:IP) plummeted to a new 52-week low of $34.75 on Friday, September 16, 2022, after Jefferies downgraded the pulp and paper company from “Hold” to “Underperform.”

Jefferies analyst Philip Ng thinks a price cut for the fourth quarter is inevitable, considering a sharp drop in orders and excess inventory. Ng also lowered his price target for International Paper Company from $40 per share to $31 per share.

Like International Paper Company, analysts also turned bearish on FedEx Corporation, Adobe Inc. and Huntsman Corporation.

6. Tronox Holdings plc (NYSE:TROX)

Number of Hedge Fund Holders: 29

Shares of Tronox Holdings plc (NYSE:TROX) plunged to a nearly 22-month low on Monday, September 19, 2022. The drop came after BMO Capital slashed its ratings for the titanium products maker from “Outperform” to “Market Perform.”

Analyst John McNulty believes weakened demand and normalized supply chains would negatively impact the prices of Titanium dioxide (TiO2). He also expects Tronox Holdings plc (NYSE:TROX) to face a hard time amid higher energy costs in the near term.

McNulty added that Tronox stock shares won’t be able to outrun the broad group until a considerable drop in energy costs. He also decreased his price target for Tronox Holdings plc (NYSE:TROX) from $21 per share to $16 per share.

5. Huntsman Corporation (NYSE:HUN)

Number of Hedge Fund Holders: 34

RBC Capital lowered its ratings for Huntsman Corporation from “Outperform” to “Sector Perform” on Monday, September 19, 2022. The research firm was moved by the company’s recently revised Ebitda outlook.

Last week, Huntsman Corporation decreased its Q3 adjusted Ebitda guidance to a range of $260 – $280 million, significantly lower than its previous projection of $310 – $355 million.

Shares of Huntsman Corporation fell over three percent on Friday, September 16, following the disappointing forecast. The company blamed elevated energy costs in Europe and weak demand in certain segments for the revised outlook.

4. NetApp, Inc. (NASDAQ:NTAP)

Number of Hedge Fund Holders: 36

Shares of NetApp, Inc. (NASDAQ:NTAP) slipped more than two percent on Monday, September 19, 2022, after Susquehanna cut its ratings for the hybrid cloud data services company from “Positive” to “Neutral.”

Susquehanna analyst Mehdi Hosseini thinks the enterprise hardware sector will continue to underperform next year due to the absence of any growth catalyst. He expects cloud and IT spending to drop in 2023. Hosseini also cut his price target for NetApp, Inc. from $100 per share to $75 per share.

NetApp, Inc. shares were trading around $67.2 as of Monday morning. The stock has lost about 27 percent of its value on a year-to-date basis.

3. NCR Corporation (NYSE:NCR)

Number of Hedge Fund Holders: 47

Morgan Stanley turned bearish on NCR Corporation (NYSE:NCR) on Monday, September 19, 2022. Analyst Erik Woodring slashed his ratings for the software, consulting and tech firm from “Overweight” to “Equal-Weight” and lowered his price target from $38 to $27.

Woodring was primarily moved by NCR’s recent decision to split into two independent firms. He expects NCR Corporation shares to remain range-bound until the company offers key details related to the spin-off.

NCR Corporation last week decided to separate into two companies. Speaking on the development, CEO Michael Hayford said in a statement:

“This announcement is the right next step in NCR’s transformation. The separation would create two strong companies at scale, each with distinctive business goals and capital structures and allocation, as well as increased flexibility to innovate.”

2. FedEx Corporation (NYSE:FDX)

Number of Hedge Fund Holders: 63

Shares of FedEx Corporation plunged to their lowest price in more than two years on Friday, September 16, 2022. The drop came after Stifel downgraded the package delivery giant from “Buy” to “Hold.”

Analyst J. Bruce Chan pointed towards the weak quarterly performance of FedEx Corporation. Chan also decreased his price target for the stock from $288 per share to $195 per share.

The downgrade came a day after FedEx Corporation posted weak preliminary results for its fiscal first quarter. The company reported adjusted earnings of $3.44 per share, missing the consensus of $5.10 per share with a big margin. The quarterly revenue of $23.2 billion also came in below the expectations of $23.5 billion.

Moreover, FedEx Corporation also renounced its full-year guidance, citing a slowdown in demand. Discussing the results, CEO Raj Subramaniam said:

“Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S. We are swiftly addressing these headwinds, but given the speed at which conditions shifted, first quarter results are below our expectations.”

1. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 92

A number of research firms turned bearish on Adobe Inc. following its recent decision to buy cloud-based design platform Figma in a transaction valued at $20 billion. Wells Fargo downgraded Adobe from “Overweight” to “Equal-Weight” and cut its price target from $425 to $310 on Monday, September 19, 2022.

In addition, Barclays also lowered its ratings for Adobe Inc. from “Overweight” to “Equal Weight” on Friday, September 16, 2022. The research firm thinks the Figma deal would likely impact the company’s profitability in the coming quarters.

Adobe Inc. shares hit a new 52-week low of $292.14 on Friday, September 16, 2022. The stock has now lost about 50 percent of its value so far this year, including the latest drop.

You can also take a peek at 8 Best Stocks To Buy Now and 10 Best Cyclical Stocks for Inflation.

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