In this article, we discuss the 5 stocks receiving price-target cut 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.
05. Global Payments Inc. (NYSE:GPN)
Number of Hedge Fund Holders: 56
Global Payments Inc. (NYSE:GPN) is a business service provider headquartered in Atlanta, Georgia. The company specializes in offering a wide range of digital payment products and solutions. Global Payments Inc. (NYSE:GPN) provides prepaid payroll and debit cards, allowing individuals without traditional bank accounts to make digital payments. Additionally, the company offers a payroll platform for businesses and is recognized as one of the leading stocks in the digital payment sector. On June 26, Mizuho revised the price target for Global Payments Inc. (NYSE:GPN), reducing it from $110 to $100.
Oakmark Funds made the following comment about Global Payments Inc. (NYSE:GPN) in its Q4 2022 investor letter:
“We eliminated four positions during the quarter: Philip Morris International, ConocoPhillips, Global Payments Inc. (NYSE:GPN) and Johnson Controls. We sold Global Payments to utilize a tax loss and to increase our position in Fiserv, a similar business that offers better fundamentals at a comparable valuation.”
04. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 57
On June 26, Argus Research revised the price target for Amgen Inc. (NASDAQ:AMGN), lowering it from $270 to $260 while keeping its buy rating intact. Amgen Inc. (NASDAQ:AMGN) is a well-established biotechnology company founded in 1983. It has gained significant success in the field, developing treatments for various diseases such as anemia, migraine, leukemia, osteoporosis, and cancer. Amgen Inc. (NASDAQ:AMGN) specializes in discovering and manufacturing innovative human therapeutics.
During the first quarter of 2023, Amgen Inc. (NASDAQ:AMGN) demonstrated strong financial performance. It generated over $0.7 billion in free cash flow, indicating a healthy cash position. Additionally, Amgen Inc. reported an operating cash flow of over $1.1 billion for the same period, highlighting its robust financial operations. Furthermore, Amgen Inc. (NASDAQ:AMGN) distributed over $1 billion in dividends to its shareholders, underscoring its commitment to rewarding investors.
03. The Charles Schwab Corporation (NYSE:SCHW)
Number of Hedge Fund Holders: 87
The Charles Schwab Corporation (NYSE:SCHW) specializes in various financial services, including wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. However, the company has experienced a significant decline in its share price, with a year-to-date decrease of 33.61%.
On April 17, The Charles Schwab Corporation (NYSE:SCHW) announced its Q1 financial results, reporting revenue of $5.12 billion. This figure reflected a 9.6% increase compared to the previous year but fell short of the Street consensus by $10 million. Additionally, the company anticipates a more substantial year-over-year decline in Q2 revenue. This projection is attributed to factors such as a reduced net interest margin (NIM), a smaller base of interest-earning assets, and decreased trading activity. On June 26, Steven Chubak, an analyst at Wolfe Research, maintained an Outperform rating for The Charles Schwab Corporation (NYSE:SCHW) but adjusted the price target from $62 to $60.
Generation Investment Management Global Equity Strategy made the following comment about The Charles Schwab Corporation (NYSE:SCHW) in its first quarter 2023 investor letter:
“Your portfolio has been relatively insulated from recent banking troubles. The Charles Schwab Corporation (NYSE:SCHW) is the only financials company in your portfolio (forming 2.37% of it). The company’s share price has suffered. We are watching the situation closely. Regulators have responded quickly to the turmoil. After a few weeks when people were withdrawing deposits from small banks across America, the rush seems to have slowed.
We do not have strong views on whether the banking turmoil will tip the global economy into recession. We are not economists, and in any case the global economy has rarely been so hard to predict. Forecasters are trying to weigh up a large number of highly unusual variables: a land war in Europe, the fallout from massive fiscal stimulus in 2020– 21 and high inflation. In this environment all judgments about the macro economy are uncertain.”
02. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 95
The Walt Disney Company (NYSE:DIS) is a diversified entertainment company that operates various businesses within the industry. Notably, it offers popular streaming services, including Disney+ and Hulu. Both services require a subscription fee, starting at $8 per month. Hulu provides a wide range of television channels and features high-quality original programming at affordable prices. It appeals to a broad audience with its diverse content selection. On the other hand, Disney+ is designed with families in mind and offers a collection of nostalgic and original shows. It allows streaming content in Ultra HD (UHD) resolution for an enhanced viewing experience. On June 26, Loop Capital Markets analyst Alan Gould reiterated a Buy rating on The Walt Disney Company (NYSE:DIS) and established a price target of $110, lowering it from $120.
VGI Partners Global Investments Limited, an investment management company, mentioned The Walt Disney Company (NYSE:DIS) in its 2022 annual investor letter. Here’s what the firm said:
“The Walt Disney Company (NYSE:DIS) is a diversified media conglomerate operating media networks, theme parks, film and TV studios and direct-to-consumer streaming services. It is the global leader in theme parks with hotels and cruise lines aimed at families. Key assets within Disney are the instantly recognisable entertainment franchises that have multiple avenues of monetisation such as Mickey Mouse, Star Wars, ABC and Marvel’s Avengers.
Disney’s share price declined due to a number of factors in 2022, presenting us the chance to purchase a long-admired business and its unique collection of valuable intellectual property assets at what we consider to be a very attractive valuation. Summarily, the EPS of Disney has declined from US$7 in 2018 to ~US$2.60 in 2022 but we believe that the earnings power of the assets has not diminished to anywhere near this extent.
Disney is currently undergoing a business transition within the Media and Entertainment Distribution division (DMED) from traditional media property distribution via third parties (i.e. cinemas and broadcast networks) to a Direct-To-Consumer (DTC) model via the Disney+ streaming service. A key element of our thesis is that the earnings power of the company is currently being masked by the marketing and content investments within Disney+ and that this will normalise over the next several years. To put this in perspective, Disney+ (DTC sub-segment) currently generates operating losses of over US$3.3bn (a negative 14% operating margin) compared to operating margins at its nearest streaming competitor, Netflix, of +15.5%…” (Click here to read the full text)
01. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 112
JPMorgan Chase & Co. (NYSE:JPM) is headquartered in New York City and operates as the largest bank in the United States and the world based on market capitalization. Established in 1799 as the Bank of the Manhattan Company, the firm currently manages approximately $3.74 trillion in total assets, highlighting its extensive presence and scale within the financial industry.
In the first quarter of 2023, JPMorgan Chase & Co. (NYSE:JPM), the American multinational financial services firm, demonstrated strong financial performance. The company returned a substantial $3 billion to shareholders in the form of dividends. Additionally, it reported impressive revenues of $38.3 billion for the quarter, marking a significant increase of 24.8% compared to the same period in the previous year. Keith Horowitz, an analyst from Citigroup, on June 26, reduced the price target for JPMorgan Chase & Co. (NYSE:JPM) from $165 to $160.
Mairs & Power mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q1 2023 investor letter. Here is what the firm has to say:
“Financials were roiled in the quarter thanks to the Silicon Valley Bank and Signature Bank failures. Even though the Fund has a similar weight to Financials as the index, our bank stocks—US Bank (USB), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo (WFC), and Charles Schwab (SCHW)—fell more than the Financials sector and hurt relative performance. We have performed a thorough analysis of our banking stocks and believe that they will exit this banking event intact, and a few may even benefit from the sector turmoil. For example, JP Morgan, one of the banks deemed “too-big-to-fail,” has benefited from an inflow of deposits from smaller institutions. As such, the Fund took advantage of the volatility in the quarter and added to its position.
With the selloff in the quarter, we have added to US Bank selectively, but more so to JPMorgan as it appears better positioned to gather deposits in the current environment.”
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