Analysts are Downgrading These 5 Stocks

In this article, we discuss the 5 stocks receiving downgrades from analysts. If you want to see some more companies whose ratings were recently cut by analysts, go directly to Analysts are Downgrading These 10 Stocks.  

5. L3Harris Technologies, Inc. (NYSE:LHX)

Number of Hedge Fund Holders: 34

L3Harris Technologies, Inc. (NYSE:LHX) specializes in aerospace and defense technology. It designs and manufactures a range of radio communications products and systems. It is also famous for its advanced defense and commercial technologies for various industries.

The Florida-based company recently received a downgrade from BofA. The research firm lowered its ratings for L3Harris Technologies, Inc. (NYSE:LHX) from “Buy” to “Neutral” on Friday, November 11.

BofA Ronald Epstein thinks supply-chain headwinds will impact the growth of L3Harris Technologies, Inc. (NYSE:LHX). Epstein expects supply challenges to persist into 2024. He also cut his price target for the stock from $285 per share to $250 per share.

4. Teva Pharmaceutical Industries Limited (NYSE:TEVA)

Number of Hedge Fund Holders: 35

JPMorgan turned bearish on Teva Pharmaceutical Industries Limited (NYSE:TEVA) on Monday, November 14. The research firm cut its ratings for the Israeli pharmaceutical company from “Neutral” to “Underweight,” citing persistent growth hurdles.

Referring to the third-quarter report, analyst Christopher Schott said the results once again showed that Teva Pharmaceutical Industries Limited (NYSE:TEVA) continues to face challenges due to the absence of a growth catalyst in its portfolio.

Earlier this month, Teva Pharmaceutical Industries Limited (NYSE:TEVA) posted weak financial results for Q3. The company earned 59 cents per share on an adjusted basis, unchanged from the year-ago period and below the consensus of 62 cents per share. Revenue for the quarter fell 8 percent versus last year to $3.59 billion, while analysts were looking for $3.83 billion

Moreover, Teva Pharmaceutical Industries Limited (NYSE:TEVA) also cut its fiscal 2022 sales outlook to a range of $14.8 – $15.4 billion. The revised guidance is below analysts’ average estimate of $15.46 billion.

3. Tyson Foods, Inc. (NYSE:TSN)

Number of Hedge Fund Holders: 37

BofA lowered its ratings for Tyson Foods, Inc. (NYSE:TSN) from “Neutral” to “Underperform” on Wednesday, November 9. Analyst Peter Galbo was primarily moved by deteriorating macro factors and decreasing chicken prices.

Galbo expects beef margins to drop further through 2024. He also cut his price target for Tyson Foods, Inc. (NYSE:TSN) from $73 per share to $61 per share.

Meanwhile, Tyson Foods, Inc. (NYSE:TSN) delivered mixed financial results for its fiscal fourth quarter on Monday, November 14. The processed meat producer reported adjusted earnings of $1.63 per share, down from $2.30 per share in the same period of 2021. Revenue came in at $13.74 billion, up 7.2 percent on a year-over-year basis. Analysts were looking for earnings of $1.70 per share on revenue of $13.49 billion.

2. Freeport-McMoRan Inc. (NYSE:FCX)

Number of Hedge Fund Holders: 56

Scotiabank trimmed its ratings for Freeport-McMoRan Inc. (NYSE:FCX) from “Outperform” to “Sector Perform” on Friday, November 11. Analyst Orest Wowkodaw mentioned a range of factors that could impact copper prices this year.

The factors putting downward pressure on the prices include rising interest rates, elevated energy costs, a strong U.S. dollar, Covid restrictions in China and geopolitical uncertainty amid the Russia-Ukraine war.

Separately, investment management firm ClearBridge Investments also discussed Freeport-McMoRan Inc. (NYSE:FCX) in its third-quarter 2022 investor letter, stating:

“Seeing better opportunities elsewhere in the materials sector, we exited our position in Ecolab and added to copper producer Freeport-McMoRan Inc. (NYSE:FCX), which supplies a much-needed resource for the energy transition, and specialty chemical company Linde (LIN), which has historically held onto pricing gains it has achieved following increases in energy costs. We think this pricing power should protect profitability during the acute inflationary phase and potentially lead to margin expansion when cost pressures abate. We think this pricing power should protect profitability during the acute inflationary phase and potentially lead to margin expansion when cost pressures abate.”

1. Global Payments Inc. (NYSE:GPN)

Number of Hedge Fund Holders: 57

Global Payments Inc. (NYSE:GPN) received a downgrade from Baird on Monday, November 14. The research firm cut its ratings for the Phoenix-based mining company from “Outperform” to “Neutral,” citing the absence of positive catalysts in the near term.

Baird also reduced its price target for Global Payments Inc. (NYSE:GPN) from $114 per share to $118 per share.

Separately, Global Payments Inc. (NYSE:GPN) also appeared in the second-quarter 2022 investor letter of asset manager Manole Capital Management. Here’s what the firm said:

“Over the next week or so, we will be publishing a stock-specific note on payment processor Global Payments Inc. (NYSE:GPN). We have owned GPN for nearly two decades and it currently is one of our largest positions. We will begin by highlighting recent spending trends, eCommerce developments and how many of our payment companies can actually benefit from inflation and higher costs. We will discuss their business, industry trends, what is driving their growth, and then highlight their compelling valuation.”

You can also take a peek at Steven Boyd and Armistice Capital’s Top Stock Picks and 12 Best Consumer Staple Stocks.

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