In this article, we discuss the 5 stocks receiving downgrades from analysts. If you want to see more such stocks on the list, go directly to Analysts on Wall Street Lower Ratings for These 10 Stocks.
05. Merck & Co., Inc. (NYSE:MRK)
Price Reaction after the Downgrade: -0.73 (-0.59%)
On March 11, Merck & Co., Inc. (NYSE:MRK), a prominent player in the pharmaceutical industry, experienced a noteworthy event in the stock market. Societe Generale, a reputable financial institution, downgraded its rating on Merck & Co., Inc. (NYSE:MRK) from “Hold” to “Sell” while setting a price target of $104.00. This downgrade marked a shift in perception regarding the company’s performance and potential. As a consequence of this downgrade, the market price of Merck & Co., Inc. (NYSE:MRK) saw a decline of 0.59% by the closing bell on March 11, settling at $122.94. This adjustment in market value reflects investor sentiment following Societe Generale’s assessment, indicating a cautious outlook on Merck & Co., Inc. (NYSE:MRK) future prospects.
04. Dominion Energy, Inc. (NYSE:D)
Price Reaction after the Downgrade: -0.36 (-0.75%)
On March 11, Dominion Energy, Inc. (NYSE:D), a key player in the energy sector, faced a significant development in the stock market. BMO Capital Markets, a respected financial institution, revised its rating on Dominion Energy, Inc. (NYSE:D) from “Outperform” to “Market Perform,” while setting a price target of $49.00. This adjustment indicates a shift in the perception of Dominion Energy’s performance and potential within the industry. Following this downgrade, the market price of Dominion Energy, Inc. (NYSE:D) experienced a decrease of 0.75% by the closing bell on March 11, settling at $46.98. This alteration in market value reflects the reaction of investors to BMO Capital Markets’ assessment, suggesting a more neutral stance on Dominion Energy, Inc. (NYSE:D) future outlook.
03. Light & Wonder, Inc. (NASDAQ:LNW)
Price Reaction after the Downgrade: -1.04 (-1.03%)
On March 11, Light & Wonder, Inc. (NASDAQ:LNW), a notable player in the technology industry, encountered a significant event in the stock market. Redburn Atlantic, a reputable financial institution, adjusted its rating on Light & Wonder from “Buy” to “Neutral,” while also raising the price target from $105.00 to $110.00. This alteration in assessment signals a change in the perception of Light & Wonder, Inc. (NASDAQ:LNW) performance and potential within the technology sector. Following this downgrade, the market price of Light & Wonder, Inc. (NASDAQ:LNW) saw a decline of 1.03% by the closing bell on March 11, settling at $101.45. This adjustment in market value reflects investor response to Redburn Atlantic’s revised stance, indicating a more cautious or balanced outlook on Light & Wonder, Inc. (NASDAQ:LNW) future prospects in the technology landscape.
02. Hyatt Hotels Corporation (NYSE:H)
Price Reaction after the Downgrade: -2.53 (-1.61%)
On March 11, Hyatt Hotels Corporation (NYSE:H), a prominent player in the hospitality industry, witnessed a notable event in the stock market. Morgan Stanley, a renowned financial institution, revised its rating on Hyatt Hotels Corporation (NYSE:H) from “Overweight” to “Equal Weight,” while adjusting the price target from $149.00 to $156.00. This shift in assessment suggests a change in the perception of Hyatt Hotels’ performance and potential within the hospitality sector. Following this downgrade, the market price of Hyatt Hotels Corporation (NYSE:H) experienced a decline of 1.61% by the closing bell on March 11, settling at $156.17. This adjustment in market value reflects investor response to Morgan Stanley’s updated stance, indicating a more balanced or neutral outlook on Hyatt Hotels Corporation (NYSE:H) future prospects in the hospitality industry.
Baron Focused Growth Fund stated the following regarding Hyatt Hotels Corporation (NYSE:H) in its fourth quarter 2023 investor letter:
“Shares of global hotelier Hyatt Hotels Corporation (NYSE:H) increased in the quarter. The company reported strong demand across its portfolio, led by robust leisure travel and improvement in its business transient and group business that is now pacing above pre-COVID levels. Room rate increases are generating solid margins and cash flow. In our view, Hyatt’s sound, underleveraged balance sheet keeps it well positioned should we enter a possible downturn in 2024. The hotel transaction market is improving, and the company has two properties for sale that should close in early 2024. At that time more than 80% of revenue will be generated from fees with the remainder from owned assets. We also believe these transactions should help boost the stock’s multiple over time.”
01. Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN)
Price Reaction after the Downgrade: -0.1500 (-4.0650%)
On March 8, Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN), a significant player in the renewable energy industry, encountered a noteworthy development in the stock market. UBS Group, a reputable financial institution, adjusted its rating on Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) from “Neutral” to “Sell,” while reducing the price target from $7.00 to $3.00. This adjustment indicates a shift in the perception of Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) performance and potential within the renewable energy sector. Following this downgrade, the market price of Maxeon Solar Technologies experienced a notable decline of 4.0650% by the closing bell on March 11, settling at $3.25. This adjustment in market value reflects investor reaction to UBS Group’s updated stance, suggesting a more pessimistic outlook on Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) future prospects in the renewable energy landscape.
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