Analysts Just Decreased Price Targets of These 10 Stocks

Published June 27, 2022 at 10:03 am EDT Updated September 7, 2026 at 2:16 pm EDT

In this article, we will take a look at the 10 stocks that recently received price-target cuts from analysts.

Footwear retailer NIKE, Inc. (NYSE:NKE), health care company Baxter International Inc. (NYSE:BAX) and biotechnology firm CRISPR Therapeutics AG (NASDAQ:CRSP) recently received price-target cuts from research firms.

In addition, analysts also slashed their price targets for stocks, including Burlington Stores, Inc. (NYSE:BURL) Ameriprise Financial, Inc. (NYSE:AMP) and Alaska Air Group, Inc. (NYSE:ALK).

We will discuss the reasons behind the revised price targets for these companies in the remaining article.

10. H.B. Fuller Company (NYSE:FUL)

Number of Hedge Fund Holders: 10

JPMorgan trimmed its price target for H.B. Fuller Company (NYSE:FUL) from $70 per share to $52 per share on Friday, June 24, 2022, following its fiscal second-quarter results. JPMorgan analyst Jeffrey Zekauskas believes that H.B. Fuller Company won’t be able to produce much free cash flow in the remaining year due to higher operating costs.

Zekauskas also downgraded H.B. Fuller Company from “Neutral” to “Underweight,” citing earnings uncertainty. The downgrade follows the company’s mixed financial performance for its fiscal second quarter. While H.B. Fuller Company beat profit and sales expectations for the quarter, it warned about rising raw material and transportation costs that could weigh on its profitability.

9. Denny’s Corporation (NASDAQ:DENN)

Number of Hedge Fund Holders: 16

Denny’s Corporation is a family restaurant chain primarily operating in the U.S. However, it also has a presence in Canada, Mexico, U.A.E., New Zealand, Costa Rica, El Salvador, Puerto Rico, Indonesia and the U.K.

Wedbush slashed its price target for Denny’s Corporation from $19 per share to $10 per share on Friday, June 24, 2022, citing lower-than-expected comparable sales growth.

In a research note to investors, Wedbush analyst Nick Setyan said Denny’s margins would stay under pressure. In addition, Setyan expressed concerns over a CEO transition later this year. He also downgraded Denny’s Corporation from “Outperform” to “Neutral.”

8. RBC Bearings Incorporated (NASDAQ:ROLL)

Number of Hedge Fund Holders: 16

RBC Bearings Incorporated (NASDAQ:ROLL) received a price-target cut from BofA Securities on Thursday, June 23, 2022. The research firm lowered its price target for the bearing products manufacturer from $218 per share to $193 per share, citing sluggish margin growth.

BofA analyst Ronald Epstein lowered his adjusted profit projections for fiscal 2023 and fiscal 2024 amid a slow margin expansion. Epstein believes most of the company’s business growth has already been mirrored in the current stock price. Epstein also downgraded RBC Bearings Incorporated from “Buy” to “Neural.”

Separately, investment management firm ClearBridge Investments mentioned RBC Bearings Incorporated in its third-quarter 2021 investor letter. ClearBridge stated:

“We sold AMETEK, in the industrials sector, and used the proceeds to add RBC Bearings, which manufactures precision engineered bearings and components for highly technical machines, such as aircrafts, submarines and power transmission systems. AMETEK is a company we have held for many years, and we continued to like their long-term prospects, but believe better upside was available in RBC Bearings due to a temporary stock price dislocation created by an equity offering for a highly accretive acquisition. Already well-positioned to capitalize on a cyclical recovery within the aerospace and industrial sectors, RBC’s recent acquisition of DODGE’s power transmission businesses should provide substantial synergies including complementary distribution, cross selling opportunities and increased manufacturing capacity that should all contribute to RBC’s long-term earnings power.”

7. Boise Cascade Company (NYSE:BCC)

Number of Hedge Fund Holders: 18

Shares of Boise Cascade Company (NYSE:BCC) fell over 10 percent on Thursday, June 23, 2022, after BofA Securities cut its price target for the distributor of building materials from $95 per share to $71 per share.

BofA analyst George Staphos referred to the sluggish growth of the housing market amid rising mortgage rates and other factors. Staphos also downgraded Boise Cascade Company from “Buy” to “Neutral.”

Like Boise Cascade Company, analysts also decreased their price targets for NIKE, Inc., Baxter International Inc. and CRISPR Therapeutics AG.

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

Number of Hedge Fund Holders: 30

Raymond James trimmed its price target for Alaska Air Group, Inc. from $75 per share to $58 per share on Thursday, June 23, 2022. In a research note to investors, Raymond James analyst Savanthi Syth referred to possible financial and operational instability following the retirement of the company’s A320 fleet next year.

Syth believes Alaska Air Group, Inc. could incur higher costs amid the approaching fleet transition. She also downgraded Alaska Air Group, Inc. from “Strong Buy” to “Outperform.”

Separately, Alaska Air Group, Inc. announced on Friday, June 24, that it would continue to compensate employees for medical procedures which are not allowed in their home countries. The announcement follows U.S. Supreme Court’s recent ruling against abortion. Alaska Air said it would cover the travel cost for procedures, including abortion.

5. CRISPR Therapeutics AG (NASDAQ:CRSP)

Number of Hedge Fund Holders: 37

Evercore ISI lowered its price target for CRISPR Therapeutics AG from $66 per share to $60 per share on Thursday, June 23, 2022. The research firm is excited about the gene-editing programs of CRISPR Therapeutics AG, but thinks they are still in the initial stages.

Evercore ISI analyst Liisa Bayko believes that investors can’t get a clear picture of the efficacy of the company’s Type 1 diabetes (T1D) program by the end of 2023. Bayko also downgraded CRISPR Therapeutics AG from “Outperform” to “In Line.”

4. Burlington Stores, Inc. (NYSE:BURL)

Number of Hedge Fund Holders: 38

Burlington Stores, Inc. received a price-target cut from Cowen & Co. on Wednesday, June 22, 2022. The research firm trimmed its price target for Burlington Stores, Inc. from $209 per share to $175 per share, citing the worsening economic condition of low-income customers amid rising inflation.

Low-income households are cutting back on non-essentials due to record inflation. The spending cuts have been hurting the sales growth of leading off-price retailers, including Burlington Stores, Inc.. Cowen also downgraded Burlington Stores, Inc. from “Outperform” to “Market Perform.”

3. Ameriprise Financial, Inc. (NYSE:AMP)

Number of Hedge Fund Holders: 39

Goldman Sachs slashed its price target for Ameriprise Financial, Inc. from $325 per share to $270 per share on Friday, June 24, 2022. The research firm also downgraded the Delaware-based financial services company from “Buy” to “Neutral.”

Goldman Sachs analyst Alexander Blostein thinks that market drawdowns can impact the company’s profit mix. Blostein also referred to the dwindling asset management growth of Ameriprise Financial, Inc.. Blostein added that some of the best flowing products of Ameriprise Financial, Inc. are experiencing performance and capacity challenges.

2. Baxter International Inc. (NYSE:BAX)

Number of Hedge Fund Holders: 45

Wells Fargo decreased its price target for Baxter International Inc. from $90 per share to $71 per share on Friday, June 24, 2022. The research firm also downgraded the Illinois-based health care company from “Overweight” to “Equal Weight.”

Wells Fargo analyst Larry Biegelsen expects potential weakness in the company’s second-quarter and fiscal 2022 profit and sales. Biegelsen also thinks Baxter International Inc. is experiencing inflationary pressure amid soaring gasoline prices and supply chain disruptions.

Separately, investment management firm Cooper Investors mentioned Baxter International Inc. in its third-quarter 2021 investor letter. The fund said:

“During the quarter we exited our position in Baxter, having originally bought in 2017 as a Low Risk Turnaround with clear Stalwart attributes. In essence, the core businesses were highly durable, providing life sustaining or saving medical products such as IV medication or pumps and dialysis machines.

They had been mismanaged prior to the company spinning off its biopharmaceutical business in 2015 which had generated most of the Baxter’s operating profit. With a new CEO in Joe Almeida, who came with a successful track record leading another medical device company (Covidien) we identified three sources of value latency for the new standalone Baxter.

Firstly, optimising the cost structure. Baxter were successful here – they were able to effectively double operating margins from low single digits to mid-to-high teens over a relatively short four-year period. Secondly, accelerating sales growth through a more focused R&D effort. This is inherently more difficult than cost optimisation and on this front success has been muted with only moderate impact to revenues from new product introductions. Finally, capital deployment through Baxter’s significantly under-levered balance sheet. Several smaller bolt-on acquisitions were nicely complementary to the existing portfolio, but in early September the company announced the acquisition of Hil-Rom Holdings, a medical device company with leading positions in bed systems and patient monitoring. The deal is significant at US$12.5bn in size, and exhausts all balance sheet latency in one fell swoop.

Whilst it is “EPS accretive” we believe the high single digit ROIC management are targeting over five years is most reflective of the financial merits of the deal. Put another way, despite visions of providing digital and connected healthcare (think a Baxter IV pump combined with a Hil-Rom smart bed), ultimately the combined entity will likely remain a low-to-mid-single digit grower. Baxter look like they are getting bigger but not necessarily better.

This combination of uncertainty around the merits of the Hil-Rom acquisition and the underwhelming performance on the product development side of the business led us to conclude that the investment proposition today is less attractive relative to other opportunities.”

1. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 67

NIKE, Inc. received a price-target cut from Deutsche Bank on Thursday, June 23, 2022. The research firm lowered its price target for the footwear and apparel retailer from $175 per share to $152 per share.

Deutsche Bank analyst Gabriella Carbone thinks NIKE, Inc. will miss profit expectations for its fiscal fourth quarter due to weak results in China. Carbone expects NIKE, Inc. to generate revenue of $1.74 billion from China, below analysts’ average estimate of $1.82 billion.

NIKE, Inc. is set to report its financial results for its fiscal fourth quarter on Monday, June 27, 2022. NIKE stock has struggled to gain value so far this year. The company’s share price has plummeted about 31 percent on a year-to-date basis.

Earlier this year, investment management firm ClearBridge Investments talked about NIKE, Inc. in its fourth-quarter 2021 investor letter. Here’s what the fund said:

“Nike is another play on e-commerce as well as the anticipated growth in consumer spending as we learn to live with COVID-19. After selling out of the stock in 2016 due to competitive concerns, we were motivated to repurchase shares because of optimism around a new management team’s focus on accelerating Nike’s shift toward e-commerce and direct-to-consumer (DTC) distribution. Near-term supply chain issues in Vietnam and retail weakness in China that we see as ephemeral provided a good buying opportunity. We do not believe the market is giving proper credit to Nike’s potential to deliver attractive, high-single-digit revenue growth while delivering operating margin expansion as more merchandise is sold direct. Nike is also still underindexed to the women’s category, which we see as a significant ongoing catalyst.”

You can also take a peek at 10 Blue Chip Stocks To Buy According To Billionaire Ken Fisher and 10 Favorite Stocks of Dan Loeb’s Third Point.

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