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 on Wall Street Lower Ratings for These 10 Stocks.
05. Ferguson plc (NYSE:FERG)
Price Reaction after the Downgrade: -3.59 (-2.33%)
BofA Securities analyst Arnaud Lehmann recently adjusted the outlook for Ferguson plc (NYSE:FERG) by downgrading the stock from Neutral to Underperform. This shift in perspective was accompanied by a notable reduction in the price target, now set at $138.00, down from the previous $160.00. This downgrade by BofA Securities suggests a more cautious view on Ferguson plc (NYSE:FERG) performance. The latest market data indicates that Ferguson plc (NYSE:FERG) stock is currently priced at $150.20, reflecting a decrease of 2.3% following the downgrade.
Right Tail Capital made the following comment about Ferguson plc (NYSE:FERG) in its Q3 2023 investor letter:
“Ferguson plc (NYSE:FERG) is a leading US-focused distributor ($33B mkt cap) of plumbing and HVAC supplies that is split between non-residential (48%) and residential (52%) as well as repair/remodel (60%) and new construction (40%). Like other high-quality distributors, Ferguson benefits from a prime spot in its value chain. It has many suppliers (over 30,000), customers (~1 million), and small competitors. By providing great service and parts availability, Ferguson guides its customers to the parts they want in a timely fashion.
I think last year the market was worried that Ferguson had over-earned due to rising prices and excess demand during covid. Furthermore, the company had removed its primary listing in the United Kingdom that caused some force selling among European index holders. Right Tail had the key insight that…” (Click here to read the full text)
04. Lyft, Inc. (NASDAQ:LYFT)
Price Reaction after the Downgrade: -0.26 (-2.76%)
Moffett Nathanson, led by analyst Michael Morton, recently revised its stance on Lyft, Inc. (NASDAQ:LYFT), downgrading the stock from Market Perform to Sell. Concurrently, the price target was adjusted to $7.00, down from the previous valuation. As of the latest market data, Lyft, Inc. (NASDAQ:LYFT) stock is currently priced at $9.17, reflecting a decrease of 2.8% following the downgrade. This Sell rating by Moffett Nathanson suggests a more cautious view on Lyft, Inc. (NASDAQ:LYFT) market performance. Investors and market participants are advised to carefully consider the implications of this downgrade, taking into account both the adjusted price target and the associated change in the stock’s market price.
ClearBridge Multi Cap Growth Strategy made the following comment about Lyft, Inc. (NASDAQ:LYFT) in its Q2 2023 investor letter:
“The sale of rideshare provider Lyft, Inc. (NASDAQ:LYFT), similar to our moves in communication services, prunes a smaller position to consolidate the portfolio in our highest conviction ideas. We initially purchased Lyft in May 2021 when rideshare volumes were still depressed due to COVID-19. While Lyft was a clear #2 behind Uber in domestic rideshare, we believed it was a cleaner way to play the U.S. recovery due to the focused nature of its business. However, poor execution and the uneven nature of the U.S. recovery, with West Coast markets where Lyft has historically had greater exposure lagging due to a lack of return to office work, further weakened its market position. In March, Lyft announced co-founder Logan Green would step down as CEO with David Risher, a former Amazon executive, taking his place. While Risher has laid out ambitions to drive Lyft’s market share higher, we believe doing so will require more than a few quarters fix. Furthermore, while the company has looked for areas to right size their cost base, we see necessary investments in price, service levels and product differentiation to drive this turnaround further pushing out the path to improved profitability.”
03. Franco-Nevada Corporation (NYSE:FNV)
Price Reaction after the Downgrade: -4.72 (-3.74%)
TD Securities analyst Greg Barnes recently adjusted the outlook for Franco-Nevada Corporation (NYSE:FNV) by downgrading the stock from Buy to Hold. This strategic shift was accompanied by a notable reduction in the price target, now set at $145.00, down from the previous $180.00. The latest market data reveals Franco-Nevada Corporation (NYSE:FNV) current stock price at $121.60, reflecting a decrease of 3.7% following the downgrade. Barnes’ decision to move FFranco-Nevada Corporation (NYSE:FNV) from a Buy rating to Hold suggests a reevaluation of their outlook on the company’s performance.
Here is what Horizon Kinetics has to say about Franco-Nevada Corporation (NYSE:FNV) in its Q3 2022 investor letter:
“Back to basic principles. We don’t hold gold in client portfolios, we hold gold royalty companies. The two have surprisingly little in common. The gold royalty company generates very impressive profits even if the gold price never rises, and it earns those profits year after year. Here is a long-term chart of Franco Nevada Corp., the premier gold royalty company vs. gold itself: a comparable gold price today than a decade ago, yet Franco Nevada returned 12.5% annually, matching the S&P 500 return, despite its nearsole source of revenues unchanged. What will Franco Nevada’s earnings and share price do if gold rises over the course of a decade?”
02. Diodes Incorporated (NASDAQ:DIOD)
Price Reaction after the Downgrade: -3.46 (-5.05%)
Diodes Incorporated (NASDAQ:DIOD) is a leading American manufacturer of semiconductor products. The company has exposure to a variety of end markets including consumer electronics, computing, communications, industrial, and automotive industries. The company designs and manufactures a variety of products including diodes, rectifiers, transistors, MOSFETs, voltage regulators, and protection devices. Baird analyst Tristan Gerra recently revised the rating for Diodes Incorporated (NASDAQ:DIOD), downgrading the stock from Outperform to Neutral. This strategic shift was accompanied by a notable reduction in the price target, now set at $70.00, down from the previous $120.00. The latest market data reveals Diodes Incorporated (NASDAQ:DIOD) current stock price at $65.08, reflecting a decrease of 5.0% following the downgrade.
01. Sarepta Therapeutics, Inc. (NASDAQ:SRPT)
Price Reaction after the Downgrade: -40.34 (-37.47%)
Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is a biotechnology firm that seeks to leverage gene therapies to treat serious diseases. Cambridge, Massachusetts-based Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is a global biotechnology company focused on the development of precision genetic medicine for rare diseases. Driven by its multi-platform precision genetic engine, the company currently has a pipeline of more than 40 programs in various stages of development across Duchenne muscular dystrophy (DMD) and limb-girdle muscular dystrophies (LGMDs), and other rare diseases. Oppenheimer recently downgraded Sarepta Therapeutics (SRPT) from Outperform to Market Perform, a decision likely influenced by the disappointing outcome of the EMBARK study, which missed its primary endpoint. The latest market data reveals Sarepta Therapeutics’ current stock price at $67.31, reflecting a significant decrease of 37.5% following the downgrade. The downgrade by Oppenheimer suggests a reevaluation of their previous positive outlook on Sarepta Therapeutics, driven by the unfavorable results of the EMBARK study.
See also 20 Biggest American Food Exports in Recent Years and Michael Jordan and 10 Richest Black Americans.
