Analysts Just Revised Their Ratings for These 10 Stocks

Published July 21, 2022 at 6:45 pm EDT Updated September 7, 2026 at 2:19 pm EDT

In this article, we will take a look at analysts’ revised recommendations for 10 companies.

Analysts recently updated their recommendations for video streaming giant Netflix, Inc. (NASDAQ:NFLX), e-commerce behemoth Alibaba Group Holding Limited (NYSE:BABA) and digital payments company Block, Inc. (NYSE:SQ).

In addition, analysts also changed their ratings for Albemarle Corporation (NYSE:ALB) and Chevron Corporation (NYSE:CVX). We will discuss the reasons behind the new recommendations in the remaining article.

Photo by Souvik Banerjee on Unsplash

10. Asana, Inc. (NYSE:ASAN)

Number of Hedge Fund Holders: 23

Asana, Inc. (NYSE:ASAN) received a downgrade from RBC Capital on Tuesday, July 19, 2022. The research firm lowered its ratings for the software solutions provider from “Sector Perform” to “Underperform.”

RBC Capital analyst Rishi Jaluria believes that the demand for Asana’s software is prone to recession. Jaluria also expressed concerns over the company’s high cash burn. He trimmed his price target for Asana, Inc. from $21 per share to $13 per share.

Earlier this year, investment management firm Carillon Tower Advisers also discussed Asana, Inc. in its first-quarter 2022 investor letter, stating:

“Asana (NYSE:ASAN) is a work management software platform that helps teams collaborate and orchestrate work from daily tasks to cross-functional strategic initiatives. Despite strong revenue growth, investors were disappointed at the lack of profitability in management’s guidance for 2022. We believe Asana is one of the best collaboration software companies, and given the massive addressable market, we are willing to look through the spending in the near term for the mid- to long-term gains in users and customers.”

9. FMC Corporation (NYSE:FMC)

Number of Hedge Fund Holders: 26

Shares of FMC Corporation (NYSE:FMC) closed higher on Wednesday, July 20, 2022, after KeyBanc raised its ratings for the Pennsylvania-based chemical producer from “Sector Weight” to “Overweight.”

KeyBanc analyst Aleksey Yefremov expects U.S. chemical producers, including FMC Corporation, to post strong second-quarter results. Yefremov set a price target of $122 per share for the stock.

FMC Corporation plans to release its financial results for the second quarter after the closing bell on August 2, 2022.

8. Invitae Corporation (NYSE:NVTA)

Number of Hedge Fund Holders: 29

Shares of Invitae Corporation (NYSE:NVTA) lost more than 17 percent of their value on Tuesday, July 19, 2022, following a downgrade from Benchmark. The research firm lowered its ratings for the San Francisco-based biotechnology firm from “Buy” to “Hold,” citing the company’s restructuring plan and a cut in its sales outlook.

Invitae Corporation recently announced that it plans to shift its focus on higher-growth areas while exiting the less profitable territories. It also disclosed that chief operating officer Kenneth Knight would become the company’s new chief executive.

In addition, Invitae Corporation slashed its sales outlook for the second quarter. It expects to post revenue of $136 million for the quarter, below analysts’ average estimate of $141 million.

7. Juniper Networks, Inc. (NYSE:JNPR)

Number of Hedge Fund Holders: 35

Shares of Juniper Networks, Inc. (NYSE:JNPR) slipped over two percent on Wednesday, July 20, 2022, after BofA lowered its ratings for the developer of networking products from “Buy” to “Underperform.”

BofA analyst Tal Liani warned about dwindling order trends and decelerating enterprise spending. Liani also cautioned that the demand for networking products could drop in 2023. He cut his price target for Juniper Networks, Inc. from $40 per share to $32 per share.

Like Juniper Networks, Inc., analysts also revised their ratings for Netflix, Inc., Alibaba Group Holding Limited and Block, Inc..

6. Weyerhaeuser Company (NYSE:WY)

Number of Hedge Fund Holders: 40

Weyerhaeuser Company (NYSE:WY) received a downgrade from Argus on Wednesday, July 20, 2022. The research firm lowered its ratings for Weyerhaeuser Company from “Buy” to “Hold,” citing a drop in the housing market index.

Argus analyst Marie Ferguson thinks that lower lumber prices combined with a drop in residential construction would likely hurt the financial results of Weyerhaeuser Company.

Home builder confidence in the U.S. has been affected by a sharp spike in inflation and record borrowing costs. Many builders have suspended construction due to these factors. The negative sentiment around the home building market is also hurting the growth of timberland companies, including Weyerhaeuser Company.

5. Albemarle Corporation (NYSE:ALB)

Number of Hedge Fund Holders: 44

Shares of Albemarle Corporation rose nearly four percent on Wednesday, July 20, 2022, after KeyBanc upgraded the Charlotte-based specialty chemicals company from “Underweight” to “Sector Weight.”

KeyBanc analyst Aleksey Yefremov expects U.S. chemical stocks, including Albemarle Corporation, to deliver solid results for the second quarter. He also expects Albemarle Corporation to benefit from higher lithium prices.

Albemarle Corporation is a leading provider of lithium, a critical component in EV batteries. The rapid adoption of EVs around the world has raised the demand for battery components, enabling lithium producers to capitalize on the solid demand.

4. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 53

Shares of Chevron Corporation closed higher on Wednesday, July 20, 2022, after HSBC raised its ratings for the California-based energy giant from “Hold” to “Buy.” HSBC analyst Gordon Gray pointed toward a sharp drop in the company’s share price. Gray added that Chevron Corporation looks attractive at current valuations.

Separately, investment management firm Diamond Hill Capital also talked about Chevron Corporation in its first-quarter 2022 investor letter. Here’s what the firm said:

“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”

3. Block, Inc. (NYSE:SQ)

Number of Hedge Fund Holders: 84

Macquarie downgraded Block, Inc. from “Outperform” to “Neutral” on Tuesday, July 19, 2022. Macquarie analyst Paul Golding thinks that the company’s operating costs would likely weigh on its adjusted EBITDA in the coming quarter. He also cut his price target for Block, Inc. from $140 per share to $64 per share.

Earlier this year, Block, Inc. appeared in the first-quarter 2022 investor letter of investment management firm Farrer Wealth Advisors. Here’s what the firm said:

“Block (formerly Square): We ‘adopted’ Block’s stock after the company bought Afterpay, which we were investors in. We had been trimming the Afterpay position throughout 2021 and trimmed again after the acquisition, so the position was quite small. We held onto that small portion, as we did think the acquisition made sense and were excited to see the two companies integrate and for Block to create a closed loop network between merchants and consumers. However, the market punished most highly valued tech stocks over the last months, and we saw the position move against us by over 50%. We are firm believers that when a stock goes against you by 50%+, you need to do something about it. Either trim/sell and reinvest or buy more. In the case of Block, the original reason for holding was to see how the acquisition and integration with Afterpay panned out. The market did not give us the time to see this play out, thus we were not comfortable adding more to the position. Further for the stock to recover to our purchase price, we felt the company’s valuation would need to command a future exit multiple that the market would be unlikely to pay in this environment. Given this, we exited the remainder of the position.”

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 100

Alibaba Group Holding Limited received an upgrade from Bernstein on Wednesday, July 20, 2022. The research firm upgraded the Chinese e-commerce giant from “Market Perform” to “Outperform.”

Bernstein analyst Robin Zhu thinks that Alibaba’s incremental gross merchandise value (GMV) share would likely expand in the coming quarters amid easier year-over-year comparisons and softer macro issues. Zhu also lifted his price target for Alibaba Group Holding Limited from $115 per share to $130 per share.

Separately, Memphis-based Longleaf Partners Fund mentioned Alibaba Group Holding Limited in its first-quarter 2022 investor letter, stating:

“We took advantage of price volatility to add to three of our most heavily discounted European businesses, including new purchases in 4Q 2021 and we reinitiated a position in Alibaba (NYSE:BABA), as the shares became even more heavily discounted amid broad China volatility in the period.”

1. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 109

Shares of Netflix, Inc. jumped over seven percent on Wednesday, July 20, 2022, after Stifel upgraded the video streaming giant from “Hold” to “Buy.” The upgrade came a day after the company released its second-quarter results.

Stifel analyst Scott Devitt referred to Netflix’s growth plans, including implementing a password-sharing fee and launching an ad-supported streaming tier. Devitt also lifted his price target for Netflix, Inc. from $240 per share to $250 per share.

Netflix, Inc. recently announced mixed financial results for the second quarter. The company reported earnings of $3.20 per share, beating the consensus of $2.94 per share. However, its quarterly revenue of $7.97 billion missed analysts’ average estimate of $8.035 billion. On the positive side, the company said it lost 970,000 subscribers during the second quarter, well below analysts’ projected loss of 2 million subscribers.

You can also take a peek at 10 Best Electric Utility Stocks To Invest In and Jim Cramer Recommends These 10 Stocks For Recession.

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