In this article, we discuss the 5 stocks recently downgraded by analysts. If you want to see some other stocks whose ratings were recently lowered by analysts, go directly to Analysts are Downgrading These 10 Stocks.
5. Huntsman Corporation (NYSE:HUN)
Number of Hedge Fund Holders: 34
RBC Capital lowered its ratings for Huntsman Corporation (NYSE:HUN) from “Outperform” to “Sector Perform” on Monday, September 19, 2022. The research firm was moved by the company’s recently revised Ebitda outlook.
Last week, Huntsman Corporation (NYSE:HUN) decreased its Q3 adjusted Ebitda guidance to a range of $260 – $280 million, significantly lower than its previous projection of $310 – $355 million.
Shares of Huntsman Corporation (NYSE:HUN) fell over three percent on Friday, September 16, following the disappointing forecast. The company blamed elevated energy costs in Europe and weak demand in certain segments for the revised outlook.
4. NetApp, Inc. (NASDAQ:NTAP)
Number of Hedge Fund Holders: 36
Shares of NetApp, Inc. (NASDAQ:NTAP) slipped more than two percent on Monday, September 19, 2022, after Susquehanna cut its ratings for the hybrid cloud data services company from “Positive” to “Neutral.”
Susquehanna analyst Mehdi Hosseini thinks the enterprise hardware sector will continue to underperform next year due to the absence of any growth catalyst. He expects cloud and IT spending to drop in 2023. Hosseini also cut his price target for NetApp, Inc. (NASDAQ:NTAP) from $100 per share to $75 per share.
NetApp, Inc. (NASDAQ:NTAP) shares were trading around $67.2 as of Monday morning. The stock has lost about 27 percent of its value on a year-to-date basis.
3. NCR Corporation (NYSE:NCR)
Number of Hedge Fund Holders: 47
Morgan Stanley turned bearish on NCR Corporation (NYSE:NCR) on Monday, September 19, 2022. Analyst Erik Woodring slashed his ratings for the software, consulting and tech firm from “Overweight” to “Equal-Weight” and lowered his price target from $38 to $27.
Woodring was primarily moved by NCR’s recent decision to split into two independent firms. He expects NCR Corporation (NYSE:NCR) shares to remain range-bound until the company offers key details related to the spin-off.
NCR Corporation (NYSE:NCR) last week decided to separate into two companies. Speaking on the development, CEO Michael Hayford said in a statement:
“This announcement is the right next step in NCR’s transformation. The separation would create two strong companies at scale, each with distinctive business goals and capital structures and allocation, as well as increased flexibility to innovate.”
2. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 63
Shares of FedEx Corporation (NYSE:FDX) plunged to their lowest price in more than two years on Friday, September 16, 2022. The drop came after Stifel downgraded the package delivery giant from “Buy” to “Hold.”
Analyst J. Bruce Chan pointed towards the weak quarterly performance of FedEx Corporation (NYSE:FDX). Chan also decreased his price target for the stock from $288 per share to $195 per share.
The downgrade came a day after FedEx Corporation (NYSE:FDX) posted weak preliminary results for its fiscal first quarter. The company reported adjusted earnings of $3.44 per share, missing the consensus of $5.10 per share with a big margin. The quarterly revenue of $23.2 billion also came in below the expectations of $23.5 billion.
Moreover, FedEx Corporation (NYSE:FDX) also renounced its full-year guidance, citing a slowdown in demand. Discussing the results, CEO Raj Subramaniam said:
“Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S. We are swiftly addressing these headwinds, but given the speed at which conditions shifted, first quarter results are below our expectations.”
1. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 92
A number of research firms turned bearish on Adobe Inc. (NASDAQ:ADBE) following its recent decision to buy cloud-based design platform Figma in a transaction valued at $20 billion. Wells Fargo downgraded Adobe from “Overweight” to “Equal-Weight” and cut its price target from $425 to $310 on Monday, September 19, 2022.
In addition, Barclays also lowered its ratings for Adobe Inc. (NASDAQ:ADBE) from “Overweight” to “Equal Weight” on Friday, September 16, 2022. The research firm thinks the Figma deal would likely impact the company’s profitability in the coming quarters.
Adobe Inc. (NASDAQ:ADBE) shares hit a new 52-week low of $292.14 on Friday, September 16, 2022. The stock has now lost about 50 percent of its value so far this year, including the latest drop.
You can also take a peek at 8 Best Stocks To Buy Now and 10 Best Cyclical Stocks for Inflation.
