In this article, we will take a look at analysts’ revised recommendations for 10 companies. If you want to see some other companies that received ratings change from analysts, go directly to Analysts Just Revised Their Ratings for These 5 Stocks.
Analysts recently updated their recommendations for video streaming giant Netflix, Inc. (NASDAQ:NFLX), e-commerce behemoth Alibaba Group Holding Limited (NYSE:BABA) and digital payments company Block, Inc. (NYSE:SQ).
In addition, analysts also changed their ratings for Albemarle Corporation (NYSE:ALB) and Chevron Corporation (NYSE:CVX). We will discuss the reasons behind the new recommendations in the remaining article.
Photo by Souvik Banerjee on Unsplash
10. Asana, Inc. (NYSE:ASAN)
Number of Hedge Fund Holders: 23
Asana, Inc. (NYSE:ASAN) received a downgrade from RBC Capital on Tuesday, July 19, 2022. The research firm lowered its ratings for the software solutions provider from “Sector Perform” to “Underperform.”
RBC Capital analyst Rishi Jaluria believes that the demand for Asana’s software is prone to recession. Jaluria also expressed concerns over the company’s high cash burn. He trimmed his price target for Asana, Inc. (NYSE:ASAN) from $21 per share to $13 per share.
Earlier this year, investment management firm Carillon Tower Advisers also discussed Asana, Inc. (NYSE:ASAN) in its first-quarter 2022 investor letter, stating:
“Asana (NYSE:ASAN) is a work management software platform that helps teams collaborate and orchestrate work from daily tasks to cross-functional strategic initiatives. Despite strong revenue growth, investors were disappointed at the lack of profitability in management’s guidance for 2022. We believe Asana is one of the best collaboration software companies, and given the massive addressable market, we are willing to look through the spending in the near term for the mid- to long-term gains in users and customers.”
9. FMC Corporation (NYSE:FMC)
Number of Hedge Fund Holders: 26
Shares of FMC Corporation (NYSE:FMC) closed higher on Wednesday, July 20, 2022, after KeyBanc raised its ratings for the Pennsylvania-based chemical producer from “Sector Weight” to “Overweight.”
KeyBanc analyst Aleksey Yefremov expects U.S. chemical producers, including FMC Corporation (NYSE:FMC), to post strong second-quarter results. Yefremov set a price target of $122 per share for the stock.
FMC Corporation (NYSE:FMC) plans to release its financial results for the second quarter after the closing bell on August 2, 2022.
8. Invitae Corporation (NYSE:NVTA)
Number of Hedge Fund Holders: 29
Shares of Invitae Corporation (NYSE:NVTA) lost more than 17 percent of their value on Tuesday, July 19, 2022, following a downgrade from Benchmark. The research firm lowered its ratings for the San Francisco-based biotechnology firm from “Buy” to “Hold,” citing the company’s restructuring plan and a cut in its sales outlook.
Invitae Corporation (NYSE:NVTA) recently announced that it plans to shift its focus on higher-growth areas while exiting the less profitable territories. It also disclosed that chief operating officer Kenneth Knight would become the company’s new chief executive.
In addition, Invitae Corporation (NYSE:NVTA) slashed its sales outlook for the second quarter. It expects to post revenue of $136 million for the quarter, below analysts’ average estimate of $141 million.
7. Juniper Networks, Inc. (NYSE:JNPR)
Number of Hedge Fund Holders: 35
Shares of Juniper Networks, Inc. (NYSE:JNPR) slipped over two percent on Wednesday, July 20, 2022, after BofA lowered its ratings for the developer of networking products from “Buy” to “Underperform.”
BofA analyst Tal Liani warned about dwindling order trends and decelerating enterprise spending. Liani also cautioned that the demand for networking products could drop in 2023. He cut his price target for Juniper Networks, Inc. (NYSE:JNPR) from $40 per share to $32 per share.
Like Juniper Networks, Inc. (NYSE:JNPR), analysts also revised their ratings for Netflix, Inc. (NASDAQ:NFLX), Alibaba Group Holding Limited (NYSE:BABA) and Block, Inc. (NYSE:SQ).
6. Weyerhaeuser Company (NYSE:WY)
Number of Hedge Fund Holders: 40
Weyerhaeuser Company (NYSE:WY) received a downgrade from Argus on Wednesday, July 20, 2022. The research firm lowered its ratings for Weyerhaeuser Company (NYSE:WY) from “Buy” to “Hold,” citing a drop in the housing market index.
Argus analyst Marie Ferguson thinks that lower lumber prices combined with a drop in residential construction would likely hurt the financial results of Weyerhaeuser Company (NYSE:WY).
Home builder confidence in the U.S. has been affected by a sharp spike in inflation and record borrowing costs. Many builders have suspended construction due to these factors. The negative sentiment around the home building market is also hurting the growth of timberland companies, including Weyerhaeuser Company (NYSE:WY).
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Disclosure: None. Analysts Just Revised Their Ratings for These 10 Stocks is originally published on Insider Monkey.
