In this article, we will take a look at the 10 most important stock analyst ratings to watch. You can skip our detailed analysis of these companies and go directly to the 5 Most Important Stock Analyst Ratings to Watch.
Analysts recently revised their ratings for notable stocks, including Marvell Technology, Inc. (NASDAQ:MRVL), Spotify Technology S.A. (NYSE:SPOT) and Sonos, Inc. (NASDAQ:SONO).
Shares of Marvell and Sonos hit a new 52-week low after analysts turned bearish on them. On the other hand, Spotify shares rose over 7 percent after receiving an upgrade. However, those gains were offset in the early trading Thursday, June 16, following rumors that Spotify is planning to cut its hiring by 25 percent amid an uncertain economic environment.
Many other stocks, including footwear company Skechers U.S.A., Inc. (NYSE:SKX) and California-based real estate investment trust Digital Realty Trust, Inc. (NYSE:DLR), also came into the spotlight after analysts updated their recommendations for them.
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Most Important Stock Analyst Ratings to Watch
10. Comtech Telecommunications Corp. (NASDAQ:CMTL)
Number of Hedge Fund Holders: 9
Jefferies downgraded Comtech Telecommunications Corp. (NASDAQ:CMTL) from “Buy” to “Hold” on Wednesday, June 15, 2022. The research firm also slashed its price target for the stock from $32 share to $10 per share.
The downgrade came just a few days after the company’s mixed financial results for Q3. Comtech Telecommunications Corp. (NASDAQ:CMTL) reported adjusted earnings of 6 cents per share for its fiscal third quarter, matching expectations. However, its quarterly revenue of $120.38 million fell short of the consensus of $122.44 million.
In a research note to investors, Jefferies analyst George Notter said Comtech Telecommunications Corp. (NASDAQ:CMTL) is experiencing delays in certain 911 projects. Notter added that the company’s recovery would take longer than he previously believed.
9. Camtek Ltd. (NASDAQ:CAMT)
Number of Hedge Fund Holders: 16
Camtek Ltd. (NASDAQ:CAMT) recently received a downgrade from B. Riley. The research firm trimmed its ratings for the metrology and inspection equipment maker from “Buy to “Neutral.”
B. Riley analyst Craig Ellis also downgraded eight other stocks in the semiconductor sector, citing fading demand and increasing input costs. Ellis referred to PHLX Semiconductor Sector Index (SOX), which has dropped more than 30 percent so far in 2022. He also warned about a challenging second half amid a record drop in the U.S. consumer sentiment driven by consistently high inflation.
8. Cullen/Frost Bankers, Inc. (NYSE:CFR)
Number of Hedge Fund Holders: 19
Shares of Cullen/Frost Bankers, Inc. (NYSE:CFR) rose over three percent on Wednesday, June 15, 2022, after JPMorgan upgraded the Texas-chartered bank from “Underweight” to “Overweight.”
The research firm also lifted its price target for Cullen/Frost Bankers, Inc. (NYSE:CFR) from $143 per share to $155 per share. JPMorgan analyst Steven Alexopoulos referred to the bank’s improving client satisfaction metrics. Alexopoulos said Cullen/Frost is among a handful of traditional financial institutions to outperform neo-banks in terms of overall customer satisfaction.
Like Cullen/Frost Bankers, Inc. (NYSE:CFR), analysts also updated their ratings for Marvell Technology, Inc. (NASDAQ:MRVL), Spotify Technology S.A. (NYSE:SPOT) and Sonos, Inc. (NASDAQ:SONO).
7. Robinhood Markets, Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders: 19
Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) hit a new 52-week low of $6.87 on Wednesday, June 15, 2022, following a downgrade from Atlantic Equities. The research firm lowered its ratings for the financial services company from “Neutral” to “Underweight” and cut its price target for the stock from $15 per share to $5 per share.
Atlantic Equities analyst John Heagerty expressed concerns over declining sales trends. Heagerty pointed to the company’s monthly active users, which have been dropping since the second quarter of 2021.
In a research note to investors, Heagerty said that average revenue per user has plummeted 62 percent from its peak in the first quarter of 2021. He added that Robinhood Markets’, Inc. (NASDAQ:HOOD) user engagement is expected to drop further with users reverting to pre-pandemic behavioral trends.
6. Continental Resources, Inc. (NYSE:CLR)
Number of Hedge Fund Holders: 20
Wells Fargo recently downgraded Continental Resources, Inc. (NYSE:CLR) from “Overweight” to “Equal Weight” and set a price target of $82 per share for the Oklahoma-based oil producer.
Wells Fargo analyst Nitin Kumar referred to an acquisition proposal from the Hamm Family to buy all outstanding shares of Continental Resources, Inc. (NYSE:CLR) for $70 apiece. Kumar doesn’t anticipate any higher bid for Continental Resources. However, he sees the latest development as a way for the Hamm family to follow a differentiated policy in the United States shale without being obligated to public equity markets.
On the other hand, Continental Resources, Inc. (NYSE:CLR) said that its board has yet to review the proposal. The company plans to make a special committee to decide on the offer.
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Disclosure: None. 10 Most Important Stock Analyst Ratings to Watch is originally published on Insider Monkey.
