Wall Street Analysts are Downgrading These 5 Stocks

In this article, we discuss the 5 stocks receiving downgrades from analysts. If you want to see some more companies receiving ratings-cut, go directly to Wall Street Analysts are Downgrading These 10 Stocks. 

5. Avalara, Inc. (NYSE:AVLR)

Number of Hedge Fund Holders: 38

Morgan Stanley downgraded Avalara, Inc. (NYSE:AVLR) from “Overweight” to “Equal Weight” on Tuesday, August 16, 2022, citing an acquisition offer from Vista Equity Partner. Morgan Stanley analyst Keith Weiss believes the valuation of Avalara seems fair and a competing bid for the Seattle-based software firm is unlikely.

Weiss also cut his price target for Avalara, Inc. (NYSE:AVLR) from $111 per share to $93.50 per share. The downgrade came nearly a week after Vista disclosed its plans to buy Avalara, Inc. (NYSE:AVLR) for $8.4 billion.

Earlier this year, Avalara, Inc. (NYSE:AVLR) also appeared in the fourth-quarter 2021 investor letter of investment management firm ClearBridge Investments. Here’s what the firm said:

“Avalara, which offers online tax compliance software for small and medium size businesses and increasingly enterprise customers, also saw its stock lose altitude with many high growth technology companions as some investors reduced financial leverage, although we are unaware of any fundamental disappointments. We continue to believe companies like Avalara will be key players in the democratization of e-commerce.”