Analysts Are Cutting Price Targets of These 5 Stocks

In this article, we discuss the 5 stocks receiving price-target cuts from analysts. If you want to see more such stocks on the list, go directly to Analysts Are Cutting Price Targets of These 10 Stocks.

5. Cloudflare, Inc. (NYSE:NET)

Number of Hedge Fund Holders: 53

Content delivery network Cloudflare, Inc. (NYSE:NET) went public in September 2019 after pricing its shares at $15 apiece. The stock achieved massive gains during the first year following its IPO. It hit an all-time high of about $220 in November 2021.

However, Cloudflare, Inc. (NYSE:NET) shares have been dropping since then. It is currently trading at a price of around $46. The company recently came into the limelight after receiving a price-target cut from Piper Sandler.

The research firm lowered its price target for Cloudflare, Inc. (NYSE:NET) from $58 per share to $46 per share on Tuesday, January 17. Analyst James Fish revised the estimates for the cloud automation software segment ahead of earnings.

4. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 77

Pfizer Inc. (NYSE:PFE) shares slid nearly four percent on Tuesday, January 17, after Wells Fargo downgraded the pharmaceutical giant from “Overweight” to “Equal Weight,” citing near-term headwinds. The research firm also reduced its price target for PFE stock from $54 per share to $50 per share.

Analyst Mohit Bansal expects an earnings down-revision cycle in the near term. Bansal also pointed towards margin pressure on Pfizer’s key segments amid elevated spending on new launches. Nevertheless, the analyst expressed optimism over the growth prospects of Pfizer Inc. (NYSE:PFE) in the long term.

Separately, investment management firm Diamond Hill Capital also shared its views about the growth outlook of Pfizer Inc. (NYSE:PFE) in its third-quarter 2022 investor letter. Here’s what the firm said:

“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc. (NYSE:PFE), media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.”

3. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 77

Jefferies downgraded Wells Fargo & Company (NYSE:WFC) from “Buy” to “Hold” on Tuesday, January 17, citing its latest quarterly performance and muted outlook for the full year. The research firm also slashed its price target for WFC stock from $49 per share to $46 per share.

Wells Fargo & Company (NYSE:WFC) recently delivered mixed results for the fourth quarter. The bank earned 67 cents per share, significantly lower than $1.38 per share in the year-ago period but marginally above expectations of 66 cents.

Revenue for the quarter slipped 5.7 percent on a year-over-year basis to $19.66 billion. However, the numbers missed analysts’ average estimate of $19.98 billion.

Discussing the results, CEO of Wells Fargo & Company (NYSE:WFC),  Charlie Scharf, said in a statement:

“Though the quarter was significantly impacted by previously disclosed operating losses, our underlying performance reflected the progress we are making to improve returns. Rising interest rates drove strong net interest income growth, credit losses have continued to increase slowly but credit quality remained strong, and we continue to make progress on our efficiency initiatives.”

2. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 88

BofA lowered its price target for Tesla, Inc. (NASDAQ:TSLA) from $135 per share to $130 per share on Tuesday, January 17. Analyst John Murphy believes the company is facing multiple headwinds, like intensifying competition. Murphy also pointed towards demand concerns amid Tesla’s latest decision to cut vehicle prices.

Tesla, Inc. (NASDAQ:TSLA) reduced the prices of its top-selling models in China earlier this month. The electric vehicle giant seems to be benefitting from the move. According to the latest data compiled by China Merchants Bank International (CMBI), the company’s average daily sales in China between January 9 – January 15 skyrocketed 76 percent on a year-over-year basis.

1. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 97

Shares of Bank of America Corporation (NYSE:BAC) slipped nearly two percent on Tuesday, January 17, after Piper Sandler turned bearish on the banking giant.

Analyst R. Scott Siefers downgraded Bank of America Corporation (NYSE:BAC) from “Neutral” to “Underweight” and slashed his price target for BAC stock from $36 per share to $33 per share. Siefers was primarily moved by the potential pressure on the company’s net interest income (NII) outlook.

The price-target cut came just days after the company released its Q4 results. Bank of America Corporation (NYSE:BAC) reported earnings of 85 cents per share, beating the consensus of 77 cents. The quarterly revenue of $24.66 billion also surpassed the expectations of $24.33 billion.

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