In this article, we will take a look at the 10 stocks that recently received price-target cuts from analysts. You can skip our detailed analysis of these companies and go directly to Analysts Just Decreased Price Targets of These 5 Stocks.
Footwear retailer NIKE, Inc. (NYSE:NKE), health care company Baxter International Inc. (NYSE:BAX) and biotechnology firm CRISPR Therapeutics AG (NASDAQ:CRSP) recently received price-target cuts from research firms.
In addition, analysts also slashed their price targets for stocks, including Burlington Stores, Inc. (NYSE:BURL) Ameriprise Financial, Inc. (NYSE:AMP) and Alaska Air Group, Inc. (NYSE:ALK).
We will discuss the reasons behind the revised price targets for these companies in the remaining article.
10. H.B. Fuller Company (NYSE:FUL)
Number of Hedge Fund Holders: 10
JPMorgan trimmed its price target for H.B. Fuller Company (NYSE:FUL) from $70 per share to $52 per share on Friday, June 24, 2022, following its fiscal second-quarter results. JPMorgan analyst Jeffrey Zekauskas believes that H.B. Fuller Company (NYSE:FUL) won’t be able to produce much free cash flow in the remaining year due to higher operating costs.
Zekauskas also downgraded H.B. Fuller Company (NYSE:FUL) from “Neutral” to “Underweight,” citing earnings uncertainty. The downgrade follows the company’s mixed financial performance for its fiscal second quarter. While H.B. Fuller Company (NYSE:FUL) beat profit and sales expectations for the quarter, it warned about rising raw material and transportation costs that could weigh on its profitability.
9. Denny’s Corporation (NASDAQ:DENN)
Number of Hedge Fund Holders: 16
Denny’s Corporation (NASDAQ:DENN) is a family restaurant chain primarily operating in the U.S. However, it also has a presence in Canada, Mexico, U.A.E., New Zealand, Costa Rica, El Salvador, Puerto Rico, Indonesia and the U.K.
Wedbush slashed its price target for Denny’s Corporation (NASDAQ:DENN) from $19 per share to $10 per share on Friday, June 24, 2022, citing lower-than-expected comparable sales growth.
In a research note to investors, Wedbush analyst Nick Setyan said Denny’s margins would stay under pressure. In addition, Setyan expressed concerns over a CEO transition later this year. He also downgraded Denny’s Corporation (NASDAQ:DENN) from “Outperform” to “Neutral.”
8. RBC Bearings Incorporated (NASDAQ:ROLL)
Number of Hedge Fund Holders: 16
RBC Bearings Incorporated (NASDAQ:ROLL) received a price-target cut from BofA Securities on Thursday, June 23, 2022. The research firm lowered its price target for the bearing products manufacturer from $218 per share to $193 per share, citing sluggish margin growth.
BofA analyst Ronald Epstein lowered his adjusted profit projections for fiscal 2023 and fiscal 2024 amid a slow margin expansion. Epstein believes most of the company’s business growth has already been mirrored in the current stock price. Epstein also downgraded RBC Bearings Incorporated (NASDAQ:ROLL) from “Buy” to “Neural.”
Separately, investment management firm ClearBridge Investments mentioned RBC Bearings Incorporated (NASDAQ:ROLL) in its third-quarter 2021 investor letter. ClearBridge stated:
“We sold AMETEK, in the industrials sector, and used the proceeds to add RBC Bearings, which manufactures precision engineered bearings and components for highly technical machines, such as aircrafts, submarines and power transmission systems. AMETEK is a company we have held for many years, and we continued to like their long-term prospects, but believe better upside was available in RBC Bearings due to a temporary stock price dislocation created by an equity offering for a highly accretive acquisition. Already well-positioned to capitalize on a cyclical recovery within the aerospace and industrial sectors, RBC’s recent acquisition of DODGE’s power transmission businesses should provide substantial synergies including complementary distribution, cross selling opportunities and increased manufacturing capacity that should all contribute to RBC’s long-term earnings power.”
7. Boise Cascade Company (NYSE:BCC)
Number of Hedge Fund Holders: 18
Shares of Boise Cascade Company (NYSE:BCC) fell over 10 percent on Thursday, June 23, 2022, after BofA Securities cut its price target for the distributor of building materials from $95 per share to $71 per share.
BofA analyst George Staphos referred to the sluggish growth of the housing market amid rising mortgage rates and other factors. Staphos also downgraded Boise Cascade Company (NYSE:BCC) from “Buy” to “Neutral.”
Like Boise Cascade Company (NYSE:BCC), analysts also decreased their price targets for NIKE, Inc. (NYSE:NKE), Baxter International Inc. (NYSE:BAX) and CRISPR Therapeutics AG (NASDAQ:CRSP).
6. Alaska Air Group, Inc. (NYSE:ALK)
Number of Hedge Fund Holders: 30
Raymond James trimmed its price target for Alaska Air Group, Inc. (NYSE:ALK) from $75 per share to $58 per share on Thursday, June 23, 2022. In a research note to investors, Raymond James analyst Savanthi Syth referred to possible financial and operational instability following the retirement of the company’s A320 fleet next year.
Syth believes Alaska Air Group, Inc. (NYSE:ALK) could incur higher costs amid the approaching fleet transition. She also downgraded Alaska Air Group, Inc. (NYSE:ALK) from “Strong Buy” to “Outperform.”
Separately, Alaska Air Group, Inc. (NYSE:ALK) announced on Friday, June 24, that it would continue to compensate employees for medical procedures which are not allowed in their home countries. The announcement follows U.S. Supreme Court’s recent ruling against abortion. Alaska Air said it would cover the travel cost for procedures, including abortion.
Click to continue reading and see Analysts Just Decreased Price Targets of These 5 Stocks.
Suggested articles:
- 10 Best Recession Stocks to Buy According to Wells Fargo
- 10 High-Yield Dividend Stocks to Buy According to John A. Levin’s Levin Capital
- 6 Defensive Stocks to Buy in 2022 According to Seth Klarman
Disclosure: None. Analysts Just Decreased Price Targets of These 10 Stocks is originally published on Insider Monkey.
