In this article, we will take a look at the 10 stocks that recently received price-target cuts from analysts. If you want to see some other companies receiving downgrades, go directly to Analysts Just Trimmed Their Price Targets of These 5 Stocks.
The Bureau of Labor Statistics recently released the inflation report, stating that inflation in June increased by 9.1 percent on a year-over-year basis, mainly driven by elevated fuel prices. Individuals, small businesses and even big-cap companies now face the negative effects of the inflationary pressure. Meanwhile, analysts are also adjusting their price targets and ratings for stocks according to the changing macro environment.
Recently, railroad operator Union Pacific Corporation (NYSE:UNP), commercial banking services provider Capital One Financial Corporation (NYSE:COF) and semiconductor company Qorvo, Inc. (NASDAQ:QRVO) received price-target cuts from analysts.
Lululemon Athletica Inc. (NASDAQ:LULU) and Insulet Corporation (NASDAQ:PODD) also came into the limelight after analysts lowered their price targets for them. We will discuss the reasons behind these cuts in the remaining article.
10. Pulmonx Corporation (NASDAQ:LUNG)
Number of Hedge Fund Holders: 16
Shares of Pulmonx Corporation (NASDAQ:LUNG) fell over eight percent on Monday, July 11, 2022, after Citigroup lowered its price target for the medical technology company from $23 per share to $19 per share.
Citi analyst Joanne Wuensch expects a difficult second quarter for the companies engaged in the medical supply and technology business. In a research note to investors, Wuensch expressed concerns over increasing macroeconomic headwinds. She also downgraded Pulmonx Corporation (NASDAQ:LUNG) from “Buy” to “Neutral.”
9. Cardlytics, Inc. (NASDAQ:CDLX)
Number of Hedge Fund Holders: 23
Shares of Cardlytics, Inc. (NASDAQ:CDLX) hit a new 52-week low of $14.48 on Tuesday, July 12, 2022, after BofA cut its price target for the Georgia-based advertising platform from $56 per share to $14 per share.
BofA analyst Nat Schindler pointed toward inflationary pressure, higher interest rates and declining economic growth. Due to these factors, Schindler expects a drop in ad spending in the second half of 2022 and next year. He also downgraded Cardlytics, Inc. (NASDAQ:CDLX) from “Neutral” to “Underperform.”
Separately, investment management firm Headwaters Capital also talked about Cardlytics, Inc. (NASDAQ:CDLX) in its fourth-quarter 2021 investor letter published earlier this year. The firm said:
“Sells: Cardlytics (“CDLX”). The CDLX position was sold during the quarter as it had become an opportunity cost in the portfolio. CDLX was a small position at the beginning of the year and has subsequently underperformed throughout the year due to a couple of poor strategic acquisitions along with a depressed spending environment from its customer base. The acquisitions were particularly concerning given that the company has not articulated a clear strategic rationale for the deals and have delayed the company’s path to profitability given that both of the acquired companies are generating losses. Given the small size of the position and the need for capital for more attractive investment opportunities, the entire CDLX position was sold during the quarter.”
8. Upstart Holdings, Inc. (NASDAQ:UPST)
Number of Hedge Fund Holders: 25
Goldman Sachs slashed its price target for Upstart Holdings, Inc. (NASDAQ:UPST) from $40 per share to $14 per share on Sunday, July 10, 2022, citing increasing competition and declining sales growth.
The research firm also downgraded Upstart Holdings, Inc. (NASDAQ:UPST) from “Neutral” to “Sell.” The latest price-target cut came just a few days after the California-based AI lending platform revised its sales outlook for the second quarter.
Upstart Holdings, Inc. (NASDAQ:UPST) now expects revenue of about $228 million for the quarter, down from its previous outlook in the range of $295 – $305 million. The updated guidance is also below the consensus of $297.6 million.
7. DigitalOcean Holdings, Inc. (NYSE:DOCN)
Number of Hedge Fund Holders: 26
Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) lost nearly 16 percent of their value on Monday, July 11, 2022, after Morgan Stanley reduced its price target for the cloud computing services provider from $61 per share to $45 per share.
Morgan Stanley analyst Josh Baer referred to the potential deceleration in software spending that could impact the growth of DigitalOcean Holdings, Inc. (NYSE:DOCN). Baer also expressed concerns over the company’s dependence on individuals, start-ups and small enterprises. He downgraded DigitalOcean Holdings, Inc. (NYSE:DOCN) from “Equal Weight” to “Underweight.”
Like DigitalOcean Holdings, Inc. (NYSE:DOCN), analysts also lowered their price targets for Union Pacific Corporation (NYSE:UNP), Capital One Financial Corporation (NYSE:COF) and Qorvo, Inc. (NASDAQ:QRVO).
6. JetBlue Airways Corporation (NASDAQ:JBLU)
Number of Hedge Fund Holders: 29
JetBlue Airways Corporation (NASDAQ:JBLU) received a price-target cut from Susquehanna on Tuesday, July 12, 2022. The research firm slashed its price target for the low-cost airline from $14 per share to $9 per share.
Susquehanna analyst Christopher Stathoulopoulos believes that JetBlue Airways Corporation (NASDAQ:JBLU) would face difficulties in expanding its margins, with or without Spirit Airlines. He also downgraded JetBlue Airways Corporation (NASDAQ:JBLU) from “Positive” to “Neutral.”
JetBlue Airways Corporation (NASDAQ:JBLU) and Frontier Group Holdings have been trying to acquire Spirit Airlines in an effort to strengthen their domestic flight operations. Multiple reports suggest that Spirit shareholders are opposing Frontier’s proposal and want to vote in favor of a merger with JetBlue Airways Corporation (NASDAQ:JBLU).
Click to continue reading and see Analysts Just Trimmed Their Price Targets of These 5 Stocks.
Suggested articles:
- 10 Defensive Stocks in Billionaire Ray Dalio’s Latest Portfolio
- Top 10 Stock Picks of Mika Toikka’s AlphaCrest Capital
- 10 Best Dividend Stocks to Buy According to Bernard Horn’s Polaris Capital Management
Disclosure: None. Analysts Just Trimmed Their Price Targets of These 10 Stocks is originally published on Insider Monkey.
