Analysts on Wall Street Lower Ratings for These 5 Stocks

01. Napco Security Technologies, Inc. (NASDAQ:NSSC)

Price Reaction after the Downgrade: -14.87 (-38.71%)

On August 21, Lake Street Capital Markets analyst Jaeson A. Schmidt made significant adjustments to his evaluation of Napco Security Technologies, Inc. (NASDAQ:NSSC). Formerly having a ‘Buy’ rating for the company, Schmidt has opted to lower the rating to ‘Hold’. This shift in perspective is accompanied by a notable reduction in the previously set price target for Napco Security Technologies, Inc. (NASDAQ:NSSC). The earlier price target of $40 has now been revised downward to $30. This adjustment in the price target suggests Schmidt’s recalibration of where the company’s stock value might stabilize in the foreseeable future.

The decision by Lake Street Capital Markets to downgrade Napco Security Technologies, Inc. (NASDAQ:NSSC) to ‘Hold’ likely reflects Schmidt’s assessment of the company’s immediate growth prospects and market dynamics. The shift from a ‘Buy’ rating to a ‘Hold’ rating suggests that Schmidt believes the stock’s potential performance might be more subdued than his previous assessment.

Wasatch Global Investors made the following comment about Napco Security Technologies, Inc. (NASDAQ:NSSC) in its Q3 2022 investor letter:

“Another meaningful contributor was Napco Security Technologies, Inc. (NASDAQ:NSSC). The company offers electronic security systems for access control, alarm warnings and video surveillance. With component prices elevated because of supply-chain constraints, Napco chose to temporarily sacrifice gross margins on its systems hardware in order to take market share from competitors. This strategy has now paid off in the form of higher-margin recurring revenues from the company’s growing installed base. Meanwhile, Napco has boosted hardware profitability through strategic price increases and improvements to the supply chain as demand remains strong, particularly in its school-security business.”

You can also take a look at Ken Fisher’s Top 15 Energy Stock Picks and 10 Best Dividend Stocks Yielding at Least 7% According to Hedge Funds.