Analysts Are Cutting Price Targets of These 10 Stocks

Published June 7, 2023 at 5:30 pm EDT Updated September 7, 2026 at 11:57 am EDT

In this article, we will discuss the 10 stocks whose price targets were recently trimmed by analysts.

On May’s final trading day, the S&P 500 neared erasing all its monthly gains, driven by concerns about rapid market growth and global economic risks. On Wednesday, May 31, the index dropped below the critical level of 4,200 due to disappointing economic data from China and Europe, raising worries about a possible economic downturn. According to Bloomberg, the decline persisted with the release of the Labor Department’s JOLTS report, revealing a surprising surge in US job vacancies to over 10 million, surpassing expectations. These numbers further fueled speculation of the Federal Reserve’s potential interest rate hike in July. Regarding the latest data, there was positive news in terms of employment. In May, the non-farm payrolls saw an addition of 339,000 new jobs, surpassing the predicted 195,000. Moreover, there were upward adjustments made to the March and April figures, further emphasizing the stronger data for May, which was better than anticipated. However, the unemployment rate experienced a slight increase from 3.4% in April to 3.7% in May, surpassing the expected levels. On the other hand, the labor force participation rate remained unchanged at 62.6% in May, aligning with the predicted outcome.

As reported by Bloomberg, debate among market strategists surrounds whether investor positioning in the Nasdaq 100 Index is becoming overcrowded, posing a potential threat to the ongoing rally. With a remarkable 31% surge this year, concerns arise regarding investor exposure and its impact. Citigroup’s Chris Montagu highlights a three-year high in long positions for Nasdaq 100 futures, accompanied by elevated profit levels, raising worries of profit-taking, and a potential headwind against the rally. Montagu’s analysis suggests a bias towards investors taking profits, which may exert pressure on the market.

In its annual default study released on Wednesday, Deutsche Bank has warned that a wave of debt defaults by companies in the United States and Europe is looming, reported Reuters. This is attributed, in part, to the current monetary tightening cycle, which is the fastest seen in the past 15 years. According to Deutsche Bank’s projections, default rates are expected to reach their highest point in the fourth quarter of next year. The study forecasts peak default rates of 9% for U.S. high-yield debt, 11.3% for U.S. loans, 4.4% for European high-yield bonds, and 7.3% for European loans.

A recent Reuters poll of property analysts suggests that U.S. home prices are projected to experience a smaller decline than previously anticipated this year, followed by a period of stagnation in 2024. This is despite the widespread belief that interest rates will remain elevated for an extended period of time. Despite the Federal Reserve implementing its most aggressive tightening cycle in forty years, average home prices have only dropped by slightly over 5% from their recent peaks. This decline is relatively minor compared to the significant 45% surge during the COVID-19 pandemic.

On the stock market front, tech stocks, including Alibaba Group Holding Limited (NYSE:BABA) and Autodesk, Inc. (NASDAQ:ADSK), came into the spotlight after receiving price-target cuts from analysts. In addition, renewable energy stock Enphase Energy, Inc. (NASDAQ:ENPH) and financial services company Citigroup Inc. (NYSE:C) were also trending after analysts cut their price targets for them. Check out the complete article below to see specific details behind the updated price targets for these stocks.

Analysts Are Cutting Price Targets of These 10 Stocks

Photo by S O C I A L . C U T on Unsplash

10. Paysafe Limited (NYSE:PSFE)

Number of Hedge Fund Holders: 23

Paysafe Limited (NYSE:PSFE) is a digital commerce solutions provider based in London, United Kingdom. It enables companies to process transactions, run data analytics, operate digital wallets, and make payments. Paysafe Limited became an independent publicly traded company in late 2020 after it merged with Foley Trasimene Acquisition Corp. II.

On May 23, BofA analyst Aditya Buddhavarapu reduced the target price for Paysafe Limited from $17 to $13.70 and maintained an Underperform rating on the company’s shares. Although acknowledging the early indications of operational improvement in Paysafe Limited Q1 results, the firm has adjusted its sum-of-the-parts-based target primarily to reflect the market value of payment processor peers.

09. Victoria’s Secret & Co. (NYSE:VSCO)

Number of Hedge Fund Holders: 26

Victoria’s Secret & Co. is an apparel retailer headquartered in Reynoldsburg, Ohio. The firm is one of the more famous companies in the world when it comes to women’s undergarments and it makes and sells a host of different products. Shares of Victoria’s Secret & Co. slipped nearly ten percent during the previous week ending May 27. The drop came after UBS trimmed its price target for the lingerie, clothing, and beauty retailer from $27 to $21 per share.

Jay Sole, an analyst at UBS, on May 23, reduced the target price for Victoria’s Secret & Co. from $27 to $21 and maintained a Sell rating on the company’s shares. UBS predicts that Victoria’s Secret & Co. will likely revise its earnings per share (EPS) forecast for fiscal year 2023 downward. This revision is expected due to a difficult first quarter characterized by slowing trends in the Specialty Retail sector, as stated by the analyst in a research note addressed to investors.

08. Zoom Video Communications, Inc. (NASDAQ:ZM)

Number of Hedge Fund Holders: 36

On May 23, James Fish, an analyst at Piper Sandler, decreased the price target for Zoom Video Communications, Inc. (NASDAQ:ZM) from $78 to $76 and maintained a Neutral rating on the company’s shares. This adjustment is based on revised free cash flow estimates following Zoom Video Communications, Inc. Q1 report. Although the company’s performance exceeded expectations, the analyst notes that the commentary and anticipated growth in the Online segment suggest a potentially weaker performance in the Direct segment later in the year. The selling environment is expected to become more challenging, and the analyst believes that Zoom Video Communications, Inc. shares lack a significant catalyst. Additionally, the Direct segment is decelerating faster than initially anticipated.

Evercore ISI also reduced the price target for Zoom Video from $85 to $75 on May 23 and maintained an In-Line rating on the company’s shares. Despite the quarter’s results being better than anticipated, the firm finds it challenging to identify a short-term catalyst that could potentially revaluate Zoom Video Communications, Inc. shares. This difficulty arises from the fact that the market for video communication platforms has become highly competitive, and it is still in its early stages. Furthermore, the uncertain macroeconomic environment adds to the hesitation.

07. Willis Towers Watson Public Limited Company (NASDAQ:WTW)

Number of Hedge Fund Holders: 36

Willis Towers Watson Public Limited Company (NASDAQ:WTW) is a British-American multinational insurance company providing consumers with data-driven solutions. In the first quarter of 2023, Willis Towers Watson Public Limited Company generated revenue of $2.2 billion, up 4% from the same period last year. The company’s operating cash flow for the quarter came in at $134 million, and its free cash flow for the quarter amounted to $92 million.

On May 23, Michael Zaremski, an analyst at BMO Capital, decreased the price target for Willis Towers Watson Public Limited Company from $260 to $230 and maintained a Market Perform rating on the company’s shares. According to the analyst’s research note, Willis Towers Watson Public Limited Company has undergone significant changes recently and is currently focused on its expense efficiency program following the terminated merger with Aon. The analyst prefers waiting for a more favorable entry point in the stock, which would include better visibility into the improvement of free cash flow conversion, especially in light of the company’s restructuring initiatives and the costs associated with its increased hiring activities.

06. Ovintiv Inc. (NYSE:OVV)

Number of Hedge Fund Holders: 38

Founded in 2002, Ovintiv Inc. (NYSE:OVV) is an oil and gas company that produces and markets oil, natural gas, and natural gas liquids. The company’s multi-basin portfolio includes Anadarko Basin in West-Central Oklahoma, the Permian Basin in Texas, and Montney in Western Canada. Other assets of Ovintiv Inc. include Bakken, a multi-bench oil resource in North Dakota, and the Uinta basin in Utah. The company’s operating segments comprise the US operations, the Canadian operations, and Market Optimization.

CIBC, on May 23, reduced the price target for Ovintiv Inc. from $55 to $50 and maintained a Neutral rating on the company’s shares. Although the analyst recognizes value within the large-cap energy sector, they believe that the relative valuation compared to the longer-term strip has decreased since earlier in the year. The analyst notes that the second quarter is expected to have the highest production downtime due to planned turnarounds.

05. Autodesk, Inc. (NASDAQ:ADSK)

Number of Hedge Fund Holders: 54

Autodesk, Inc. is an engineering and design software provider. Its architecture design software uses artificial intelligence to sift through designs and evaluate structural issues.

On May 23, Citi analyst Tyler Radke revised the target price for Autodesk, Inc. from $265 to $241 while maintaining a Buy rating on the company’s shares. The analyst believes there is a more cautious outlook for the shares in the near term due to uncertainties in the macro environment and worrisome signals from Citi’s resellers’ survey. The survey indicated the weakest growth in sales and observed growth rates in quite some time. Although the underperformance in Q1 can be attributed to one-off and expected factors, recent data points raise additional concerns, according to the analyst’s research note for investors.

04. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Fund Holders: 63

Enphase Energy, Inc. provides home energy solutions for the solar photovoltaic industry. They specialize in designing, developing, manufacturing, and selling these solutions in the United States and globally. On May 24, Christine Cho, an analyst at Barclays, decreased the price target for Enphase Energy from $248 to $226 and maintained an Equal Weight rating on the company’s shares following the release of their Q1 results. The analyst believes Enphase Energy, Inc. is well-positioned to capture a larger market share in Europe, particularly in the residential sector.

Aristotle Atlantic Large Cap Growth Strategy made the following comment about Enphase Energy, Inc. in its Q1 2023 investor letter:

“Enphase Energy, Inc. (NASDAQ:ENPH) designs, develops, manufactures and sells home energy solutions in the U.S. and internationally for the solar industry. The company is the world’s leading manufacturer of microinverters that convert solar-generated D.C. energy to A.C. energy usable in homes and buildings. Enphase introduced the world’s first microinverter system in 2008 and has expanded its offerings to include battery storage systems and proprietary technologies that provide energy monitoring and control services for solar energy systems. It sells its products and solutions directly to solar system distributors, large installers and strategic partners.

We see Enphase having a substantial market share that is gained through a premium product offering, superior customer service and the development of a large and diverse network of solar installers and distributors. The company’s products and services address a growing residential solar market. Coupling battery backup systems with existing and newly installed residential solar systems could accelerate the company’s revenue and earnings growth over the next several years, in our view. Additionally, commercial and international expansion offer additional revenue and earnings upside. Enphase also plans to expand manufacturing capacity in the U.S. during 2023 to benefit from tax incentives related to domestic production included in the Inflation Reduction Act (IRA).”

03. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Hedge Fund Holders: 68

Lowe’s Companies, Inc. (NYSE:LOW) is an American retail company headquartered in Mooresville, North Carolina. It primarily sells home improvement products. Some of the products in its stores include hardware, flooring, plumbing, kitchen, and bathroom products.

Argus has lowered the price target for Lowe’s Companies, Inc. from $290 to $250 but maintains a Buy rating on the company’s shares following its Q1 results. According to the analyst research note issued on May 25, Lowe’s Companies, Inc. experienced a 5.6% decrease in sales due to lumber deflation, which impacted its top-line performance. However, Argus highlights that Lowe’s is still well-positioned to achieve future earnings growth and gain market share, despite the challenges of tighter monetary policy and reduced consumer discretionary spending. Nonetheless, the firm has revised its estimates for Lowe’s, reducing its FY24 EPS estimate to $13.45 from $13.84 and its FY25 estimate to $15.00 from $15.50.

02. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 81

Citigroup Inc. is one of the biggest banks in the US, along with Bank of America Corporation (NYSE:BAC), Wells Fargo & Company, the Goldman Sachs Group, Inc. (NYSE:GS), and JPMorgan Chase & Co.. Janet Yellen, the former Federal Reserve Chairperson and current Treasury Secretary, suggests that Citigroup Inc. has the chance to engage in bank mergers amidst the difficult circumstances faced by the industry. While this may lead to an increased concentration of corporate power in the future, it could be seen as a necessary step in the present to confront the prevailing economic uncertainty.

David Konrad, an analyst at Keefe Bruyette, on May 25, reduced the price target for Citigroup Inc. from $50 to $48 and maintained a Market Perform rating on the company’s shares. The analyst explains that Citigroup Inc. has abandoned the previously planned sale of its Mexico retail bank and intends to pursue an initial public offering (IPO) for the business in 2025. The management’s objective is to optimize shareholder value. However, Keefe Bruyette believes the decision introduces increased execution risk, as the management could not secure a suitable price from a potential buyer. This development also raises concerns about the attractiveness of the underlying assets, as investors had earlier anticipated a strong price and gain for shareholders.

01. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 113

On May 23, Shyam Patil, an analyst at Susquehanna, decreased the price target for Alibaba Group Holding Limited from $175 to $160 and maintained a Positive rating on the company’s shares. The analyst acknowledges that Alibaba Group Holding Limited is still encountering challenges stemming from macroeconomic factors and the persistent effects of the pandemic. However, there are signs of improvement in the Chinese macro environment, and the company’s commitment to cost discipline is yielding positive results.

Earlier in May Alibaba Group Holding Limited posted its fiscal Q4 results. Adjusted EPADS for the fourth quarter came in at $1.56, beating estimates by $0.21. Revenue jumped 2% year over year to $30.32 billion, beating estimates by $410 million.

L1 Long Short Fund made the following comment about Alibaba Group Holding Limited in its Q1 2023 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) (Long +16%) shares performed strongly based on favourable sentiment surrounding China’s re-opening and indications from Chinese authorities that the prolonged restructuring process of Alibaba/Ant Financial was finally drawing to a close. The company remains a high-quality business with leading positions in both eCommerce and Public Cloud. We exited our position in January at around US$116 per share with the shares having rallied more than 90% since their early November lows and our China re-opening catalyst having played out. We subsequently re-entered the position in March with the shares having pulled back and with the company announcing a new organisational and governance structure. Alibaba has announced plans to split into six major business groups – Cloud Intelligence, Taobao Tmall, Local Services, Global Digital, Cainiao Smart Logistics and Digital Media and Entertainment Group. Each of these groups will be managed independently (separate CEO and board) and have the flexibility to raise external capital and potentially pursue separate IPOs. We believe this announcement is a strong catalyst to unlock the inherent sum-of-the-parts valuation discount in the company.”

You can also check out 14 Best Healthcare Dividend Stocks to Buy and 30 Colleges With the Highest Acceptance Rates.