In this article, we will discuss the 10 stocks whose price targets were recently trimmed by analysts. If you want to see more such stocks on the list, go directly to Analysts Just Trimmed Price Targets for These 5 Stocks.
The stock market is on track for a positive weekly performance as investors eagerly anticipate the upcoming speech by Federal Reserve Chair Jerome Powell at the Jackson Hole summit. All eyes are on this gathering of central bankers, as it holds significant implications for market trends. Both U.S. futures and European stocks showed modest gains on August 25, providing relief following the decline experienced on the previous day. Contracts linked to the S&P 500 index have risen by 0.3%, indicating a potential rebound for the broader equities market. This increase comes as a welcome development after the recent dip. The Stoxx 600 index extended its first weekly gain in Europe in four weeks. A notable contributor to this positive movement is the boost provided by commodity shares. Notably, the prices of oil and iron ore have climbed, prompting a rise in commodity-related stocks. Investor attention is particularly focused on the commodity sector due to these price hikes, which positively impacts the overall market sentiment. The steady increase in oil and iron ore prices is influencing trading patterns and contributing to the upward trajectory of the Stoxx 600.
As market participants await Powell’s speech, which is expected to offer insights into the Federal Reserve’s future policies and economic outlook, the current market dynamics continue to be influenced by various factors. These factors include the evolving commodity prices, overall investor sentiment, and the anticipation of potential shifts in central bank policies. In summary, the markets are experiencing upward momentum as traders eagerly await Powell’s address at the Jackson Hole summit. The positive performance of commodity stocks, driven by increased oil and iron ore prices, contributes to the overall gains observed in both U.S. and European markets. This, in turn, is providing some relief after a recent decline, and investors are closely watching for any indications of future market trends that Powell’s speech might provide.
According to Bloomberg, Federal Reserve officials indicate that interest rates might be nearing their peak levels, although there are differing opinions on how close this might be. The prevailing sentiment is that current interest rates are in a “restrictive stance,” as noted by the President of the Philadelphia Fed. This implies that rates have reached a level that could potentially slow down economic growth. While one official mentioned that the Federal Reserve could be approaching a point where they can maintain the current rates for a considerable period, Boston Fed President Susan Collins mentioned that there might still be a need for further incremental rate hikes. Collins shared her perspective during an interview with Yahoo! Finance on the sidelines of the Kansas City Fed’s annual economic policy symposium in Jackson Hole, Wyoming. Collins noted that while there’s a possibility of needing additional rate increases, she also emphasized that the Federal Reserve might be on the brink of a juncture where they could keep rates stable for an extended duration. This indicates that the central bank is closely assessing the economic landscape, trying to find the right balance between preventing excessive inflation and maintaining a conducive environment for economic growth. The differing viewpoints among these officials highlight the ongoing complexity in determining the optimal course of action for interest rates. The central challenge lies in gauging inflation trends and economic conditions accurately to make informed decisions about whether to continue raising rates, maintain them, or potentially lower them to stimulate economic activity. The discussions around interest rates and their potential trajectory reflect the intricate task that the Federal Reserve faces in managing monetary policy to support a healthy economy while keeping inflation in check. As the Federal Reserve gathers at the annual economic policy symposium, these deliberations have added significance, given their potential impact on financial markets, borrowing costs, and broader economic conditions.
On the stock market front, analysts are bearish on discount retail stock Dollar Tree, Inc. (NASDAQ:DLTR), and tech stocks such as BlackBerry Limited (NYSE:BB) and Snowflake Inc. (NYSE:SNOW). Check out the complete article to see details of these and other stocks.
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10. DICK’S Sporting Goods, Inc. (NYSE:DKS)
Price Reaction after the Price Target Cut: +2.40 (+2.16%)
DICK’S Sporting Goods, Inc. (NYSE:DKS) was established in 1948 in Coraopolis, Pennsylvania. DICK’S Sporting Goods, Inc. (NYSE:DKS) and its subsidiaries primarily operate as a US-based sports retailer. They offer a range of products, including sports equipment, fitness gear, golf items, hunting and fishing supplies, clothing, footwear, and accessories. The company also manages specialty stores like Sporting Goods, Golf Galaxy, Field & Stream, Public Lands, and more. They also run DICK’S House of Sports, Golf Galaxy Performance Center, and GameChanger, a mobile app for youth sports. Sales occur through their online platforms.
On August 24, DICK’S Sporting Goods, Inc. (NYSE:DKS) has experienced an adjustment in its target price as JPMorgan Chase & Co recommended. In a notable market shift, the price target has been reduced from $144 to the revised target of $128. The company’s current market price stands at $113.54. Importantly, this adjustment in price target doesn’t appear to have influenced the analyst rating, which remains consistent at Neutral. JPMorgan Chase & Co.’s perspective on the stock’s outlook has not changed significantly in light of this price adjustment.
Similar to discount retail company Dollar Tree, Inc. (NASDAQ: DLTR), and technology-oriented stocks like BlackBerry Limited (NYSE: BB) and Snowflake Inc. (NYSE: SNOW), market analysts hold a pessimistic outlook on DICK’S Sporting Goods, Inc. (NYSE: DKS).
09. American International Group, Inc. (NYSE:AIG)
Price Reaction after the Price Target Cut: +0.47 (+0.82%)
On August 24, American International Group, Inc. (NYSE:AIG), a notable entity in the financial landscape, received a significant assessment from BMO Capital analyst Michael Zaremski. In his evaluation, Zaremski has attributed a Market Perform rating to American International Group, Inc. (NYSE:AIG), shedding light on his perspective regarding the company’s current and future performance. A significant aspect of this assessment pertains to the analyst’s revision of the price target, which has been adjusted downward from the previous mark of $65 to the new figure of $63. This shift in the price target implies that Zaremski anticipates a slightly different trajectory for American International Group, Inc. (NYSE:AIG) value in the market compared to his earlier projection.
Third Point Management made the following comment about American International Group, Inc. (NYSE:AIG) in its Q1 2023 investor letter:
“FIS and American International Group, Inc. (NYSE:AIG) were also hit by the indiscriminate defenestration of most Financials immediately following the collapse of SVB, but AIG has rallied nearly 8% from its lows and our thesis, which we wrote about in our last quarterly letter, remains the same.”
08. Lancaster Colony Corporation (NASDAQ:LANC)
Price Reaction after the Price Target Cut: -1.80 (-1.10%)
On August 24, Loop Capital adjusted its price target for Lancaster Colony Corporation (NASDAQ:LANC), a significant player in its industry. Previously set at $237, the price target has been revised downward to $226. Despite this recalibration, it’s worth noting that the current market price of Lancaster Colony Corporation (NASDAQ:LANC) stood at $161.64 on August 24, registering a relatively minor decrease of -1.1% at the close of market on August 24. What stands out is that Loop Capital, in conjunction with this price target adjustment, has upheld its Buy rating for the company. This reaffirmation of the Buy rating underscores Loop Capital’s continued optimism about Lancaster Colony Corporation (NASDAQ:LANC) performance and potential within the market. The adjustment in the price target provides insights into Loop Capital’s adjusted expectations for the company’s valuation, while the sustained Buy rating serves as an indicator of their enduring confidence in the company’s capabilities.
Diamond Hill Mid Cap Strategy made the following comment about Lancaster Colony Corporation (NASDAQ:LANC) in its Q4 2022 investor letter:
“Other top contributors included AIG, Freeport-McMoRan and Lancaster Colony Corporation (NASDAQ:LANC). Diversified foods manufacturer and retailer Lancaster Colony Corporation has done a fairly effective job of offsetting inflation with a combination of price increases and cost-cutting measures, contributing to higher profits and improved margins.”
07. CubeSmart (NYSE:CUBE)
Price Reaction after the Price Target Cut: -0.50 (-1.19%)
On August 24, Citigroup revised the price target for CubeSmart (NYSE:CUBE), a notable player in the self-storage industry. The previous price target of $47 has been adjusted to $45, indicating a downward revision. In alignment with this adjustment, the current market price of CubeSmart (NYSE:CUBE) stood at $41.42 at the close of markets on August 24, reflecting a slight decrease of -1.2%. It’s worth noting that Citigroup has maintained its Neutral rating for the company, indicating a consistent view on CubeSmart (NYSE:CUBE) market performance and potential. This detailed evaluation from Citigroup provides valuable insights for investors and stakeholders as they navigate their decisions regarding CubeSmart (NYSE:CUBE), considering both the price target adjustment and the unwavering Neutral rating in the context of the company’s outlook.
Much like Dollar Tree, Inc. (NASDAQ: DLTR), a stock in the discount retail sector, and technology-focused companies such as BlackBerry Limited (NYSE: BB) and Snowflake Inc. (NYSE: SNOW), analysts are expressing negative sentiment towards CubeSmart (NYSE:CUBE).
Diamond Hill Mid Cap Strategy made the following comment about CubeSmart (NYSE:CUBE) in its Q1 2023 investor letter:
“Other top contributors included CubeSmart (NYSE:CUBE), Red Rock Resorts and NVR. Storage company CubeSmart is growing steadily in what we believe to be one of the real estate sector’s best quality businesses (i.e., storage).”
06. Casey’s General Stores, Inc. (NASDAQ:CASY)
Price Reaction after the Price Target Cut: -4.03 (-1.64%)
On August 24, Royal Bank of Canada adjusted the price target for Casey’s General Stores, Inc. (NASDAQ:CASY), a notable player in the convenience store industry. The previous price target of $280 has been revised to $275, reflecting a downward shift. Corresponding to this update, the current market price of Casey’s General Stores, Inc. (NASDAQ:CASY) stood at $241.82 at the close of markets on August 24, signifying a modest decrease of -1.6%. It’s important to highlight that Royal Bank of Canada has maintained its Sector Perform rating for the company, signaling a consistent assessment of Casey’s General Stores, Inc. (NASDAQ:CASY) performance within its sector. This comprehensive analysis by the Royal Bank of Canada is a valuable tool for investors and stakeholders as they navigate their decisions concerning Casey’s General Stores, Inc. (NASDAQ:CASY), considering both the adjusted price target and the unwavering Sector Perform rating in the context of the company’s sectoral dynamics.
TimesSquare U.S. Mid Cap Growth Strategy made the following comment about Casey’s General Stores, Inc. (NASDAQ:CASY) in its Q4 2022 investor letter:
“More positive was Casey’s General Stores, Inc. (NASDAQ:CASY), which operates over 2,000 gas stations and convenience stores across the Midwestern U.S. Results were higher than expected in the latest quarter and driven by better same store sales. We trimmed the position on its 11% share price appreciation.”
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Disclosure: None. Analysts Just Trimmed Price Targets for These 10 Stocks is originally published on Insider Monkey.
