In this article, we will take a look at analysts’ updated recommendations for 10 companies. You can skip our detailed analysis of these companies and go directly to the Analysts Just Revised Their Ratings for These 5 Companies.
Analysts recently upgraded oil and gas giant Exxon Mobil Corporation (NYSE:XOM), real estate investment trust American Tower Corporation (NYSE:AMT) and healthcare provider Centene Corporation (NYSE:CNC). Shares of Exxon, American Tower and Centene closed higher on Tuesday, June 21, following the upgrades.
In addition, software giant Adobe Inc. (NASDAQ:ADBE) and energy company Suncor Energy Inc. (NYSE:SU) were also spotted making moves after analysts updated their recommendations for them.
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Let’s take a look at some of the important recent analyst ratings.
10. MarineMax, Inc. (NYSE:HZO)
Number of Hedge Fund Holders: 20
Shares of MarineMax, Inc. (NYSE:HZO) slipped nearly two percent on Tuesday, June 21, 2022, after receiving a downgrade from B. Riley. The research firm lowered its ratings for the recreational boat retailer from “Buy” to “Neutral,” citing the rapidly changing economic environment.
B. Riley analyst Eric Wold also cut his price target for MarineMax, Inc. (NYSE:HZO) from $84 per share to $44 per share. Wold thinks the company could face increasing challenges amid a dwindling consumer outlook.
MarineMax, Inc. (NYSE:HZO) have struggled to gain value so far in 2022. The company’s share price has plummeted about 38 percent on a year-to-date basis.
9. SunPower Corporation (NASDAQ:SPWR)
Number of Hedge Fund Holders: 21
Shares of SunPower Corporation (NASDAQ:SPWR) dropped over three percent on Tuesday, June 21, 2022, after Goldman Sachs downgraded the solar technology provider from “Neutral” to “Sell.”
Goldman Sachs analyst Brian Lee thinks that heightened inflation and increasing interest rates could affect the sales of solar products. He also cut his price target for SunPower Corporation (NASDAQ:SPWR) from $19 per share to $13 per share.
Many people secure loans to buy solar products as they can’t pay in upfront cash. However, Lee believes rising interest rates may discourage them from borrowing money, resulting in lower demand for solar companies, including SunPower Corporation (NASDAQ:SPWR).
8. International Paper Company (NYSE:IP)
Number of Hedge Fund Holders: 27
Citigroup lowered its ratings for International Paper Company (NYSE:IP) from “Buy” to “Neutral” on Tuesday, June 21, 2022, citing cautious commentary from Pulp and Paper Week last week. Pulp and Paper Week is a price reporting and analytics firm offering insight into the latest trends in the pulp and paper market.
Referring to the fading demand, Citi analyst Anthony Pettinari also cut his price target for International Paper Company (NYSE:IP) from $53 per share to $46 per share. Though containerboard stocks have performed well so far in 2022, Pettinari believes these companies are less likely to sustain that performance in the second half.
Like Paper Company (NYSE:IP), analysts also revised their ratings for Exxon Mobil Corporation (NYSE:XOM), American Tower Corporation (NYSE:AMT) and Adobe Inc. (NASDAQ:ADBE).
7. Six Flags Entertainment Corporation (NYSE:SIX)
Number of Hedge Fund Holders: 38
Shares of Six Flags Entertainment Corporation (NYSE:SIX) fell four percent on Tuesday, June 21, 2022, after B. Riley downgraded the amusement parks operator from “Buy” to “Neutral,” referring to the rapidly changing economic environment.
The research firm also trimmed its price target for Six Flags Entertainment Corporation (NYSE:SIX) from $55 per share to $24 per share. B. Riley said the fading consumer outlook could increase challenges for the company.
Unlike the latest downgrade, asset management firm Baron Real Estate Fund expressed optimism over the growth the prospect of Six Flags Entertainment Corporation (NYSE:SIX) last month. Here’s what the fund said about Six Flags in its first-quarter 2022 investor letter:
“The shares of Six Flags Entertainment Corporation increased modestly in the most recent quarter following encouraging business results. The company is the largest operator of regional theme parks in the world with 30 parks across the U.S., Mexico, and Canada and hosts approximately 30 million visitors annually. Six Flags enjoys robust unaided consumer awareness due to its 60-year operating history and enduring brand.
We have recently spent time with newly appointed CEO Selim Bassoul. Selim spent over 20 years as the former CEO of The Middleby Corporation where he engineered a successful turnaround, implementing an accretive acquisition strategy and reinvigorating organic growth. Middleby ultimately grew sales from approximately $100 million to over $2.5 billion at his retirement in 2019. Six Flags also has elements of a turnaround situation, yet also has the ability to leverage its well-known brand and long operating history.”
6. WestRock Company (NYSE:WRK)
Number of Hedge Fund Holders: 39
Shares of WestRock Company (NYSE:WRK) hit a new 52-week low of $39.89 on Tuesday, June 21, 2022, after Citigroup analyst Anthony Pettinari turned bearish on the corrugated packaging company.
Pettinari lowered his ratings for WestRock Company (NYSE:WRK) from “Buy” to “Neutral” and trimmed his price for the stock from $53 per share to $45 per share. Pettinari referred to the cautious commentary from analytics firm Pulp and Paper Week and fading demand.
The analyst believes the outperformance of containerboard stocks, including WestRock Company (NYSE:WRK), is less likely to continue in the second half of 2022 due to deteriorating demand.
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Disclosure: None. Analysts Just Revised Their Ratings for These 10 Companies is originally published on Insider Monkey.
