In this article, we discuss the 5 stocks receiving price-target cut from analysts. If you want to see more such stocks on the list, go directly to Wall Street Analysts Just Trimmed Price Targets for These 10 Stocks.
05. PepsiCo, Inc. (NASDAQ:PEP)
Price Reaction after the Price Target Cut: +1.07 (+0.67%)
On October 9, 2023, Wells Fargo analyst Chris Carey reevaluated PepsiCo, Inc. (NASDAQ:PEP), making significant adjustments to the stock’s outlook. The analyst lowered the price target from $196 to $170 while maintaining an Equal-Weight rating. As of the latest data, PepsiCo, Inc. (NASDAQ:PEP) current market price is $161.36, reflecting a modest increase of 0.7%. This revision by Wells Fargo & Company suggests a recalibration of their assessment of PepsiCo, Inc. (NASDAQ:PEP) performance within the consumer goods and beverage industry. The decision to retain an Equal-Weight rating indicates Wells Fargo’s expectation that PepsiCo, Inc. (NASDAQ:PEP) will perform in line with market trends despite the adjusted price target.
Madison Sustainable Equity Fund made the following comment about PepsiCo, Inc. (NASDAQ:PEP) in its Q1 2023 investor letter:
“PepsiCo, Inc. (NASDAQ:PEP) announced that it will commit $3.3 million in funds toward water replenishment projects across North America. These projects aim to reduce absolute water use and replenish back into the local watershed more than 100% of the water used at company-owned and third-part sites in high water-risk areas.”
04. Visa Inc. (NYSE:V)
Price Reaction after the Price Target Cut: -0.60 (-0.26%)
On October 9, 2023, JPMorgan analyst Tien-tsin Huang adjusted the outlook for Visa Inc. (NYSE:V). The analyst lowered the price target from $296.00 to $293.00 while upholding an Overweight rating. As of the latest data, Visa Inc. (NYSE:V) current market price is $234.44, reflecting a marginal decrease of 0.3%. This revision by JPMorgan Chase & Co. signifies a reevaluation of Visa Inc. (NYSE:V) potential within the financial services and payment industry. Despite the reduced price target, the decision to maintain an Overweight rating suggests that JPMorgan sees Visa Inc. (NYSE:V) as poised for outperformance relative to the broader market.
Baron FinTech Fund made the following comment about Visa Inc. (NYSE:V) in its second quarter 2023 investor letter:
“We modestly trimmed Visa Inc. (NYSE:V), Mastercard Incorporated, and Accenture plc to manage the position sizes and raise capital to fund purchases elsewhere. These stocks remain full-sized positions and high-conviction ideas in the Fund.
Another fintech industry trend we’re seeing is a pickup in M&A activity, most notably in the payments sector. The year started with Nuvei’s $1.3 billion acquisition of Paya announced in January. In April, Network International received an initial takeover offer from a group of private equity firms, which was then topped by Brookfield Asset Management whose $2.8 billion offer was accepted by the Board in June. Following reports earlier this year of a bidding war between Visa Inc. and Mastercard Incorporated to acquire cloud-based issuer processor and core banking software provider Pismo, Visa announced its intention to acquire the Brazilian company for $1 billion in late June.”
03. Tesla, Inc. (NASDAQ:TSLA)
Price Reaction after the Price Target Cut: -0.86 (-0.33%)
On October 9, Jefferies analyst Philippe Houchois adjusted the outlook for Tesla, Inc. (NASDAQ:TSLA). The analyst lowered the price target from $265.00 to $250.00 while sustaining a Hold rating. As of the latest data, Tesla’s current market price is $259.67, indicating a marginal decrease of 0.3%. This revision by Jefferies Financial Group indicates a reevaluation of Tesla, Inc. (NASDAQ:TSLA) potential within the electric vehicle and automotive industry. Despite the lowered price target, maintaining a Hold rating suggests that Jefferies sees Tesla, Inc. (NASDAQ:TSLA) as likely to perform in line with market trends, without a strong recommendation to buy or sell.
Baron Partners Fund made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q2 2023 investor letter:
Many factors contributed to the strong performance of our largest Disruptive Growth position, Tesla, Inc. (NASDAQ:TSLA), in the period. Investors’ concerns regarding Tesla in 2022 continue to dissipate, and the company’s business has continued to grow materially, although at below peak margins. Tesla’s deliveries in China are recovering. The company’s newest factory in Texas has ramped production and should contribute to improved domestic sales and margins. U.S. government policies have lowered the cost to own Tesla vehicles, while also reducing the company’s battery production expenses.
We continue to believe that Tesla is only scratching the surface of its potential. We regard announced partnerships between Tesla and its competitors in the quarter as important. In early June, Tesla agreed to provide Ford Motors access to Tesla’s electric vehicle (EV) charging technology and network. Other traditional and pure EV manufacturers, including General Motors, Rivian, and Volvo, quickly followed suit. We expect additional charging partnerships to ensue. In our view, these relationships validate Tesla’s charging technology and infrastructure as superior to other standards. Consolidation around a single technology should accelerate charging infrastructure deployment, diminish the risk of Tesla’s technology becoming obsolete, and lessen a key concern of hesitant EV purchasers. EV adoption is at a tipping point. And Tesla, with its approximately 60% domestic market share of EVs, should be the most important beneficiary of this shift…” (Click here to read the full text)
02. Mastercard Incorporated (NYSE:MA)
Price Reaction after the Price Target Cut: -3.23 (-0.81%)
On October 9, 2023, JP Morgan analyst Tien-Tsin Huang reaffirmed his optimistic outlook on Mastercard Incorporated (NYSE:MA), maintaining an Overweight rating. Despite this positive stance, Huang adjusted the price target, lowering it from $510 to $496. As of the most recent data, Mastercard Incorporated (NYSE:MA) current market price is $394.78, reflecting a marginal decrease of 0.8%. The decision to retain an Overweight rating suggests that JP Morgan views Mastercard Incorporated (NYSE:MA) as positioned for outperformance relative to the broader market, even with the revised price target.
Baron FinTech Fund made the following comment about Mastercard Incorporated (NYSE:MA) in its second quarter 2023 investor letter:
“We modestly trimmed Visa Inc., Mastercard Incorporated (NYSE:MA), and Accenture plc to manage the position sizes and raise capital to fund purchases elsewhere. These stocks remain full-sized positions and high-conviction ideas in the Fund.
Another fintech industry trend we’re seeing is a pickup in M&A activity, most notably in the payments sector. The year started with Nuvei’s $1.3 billion acquisition of Paya announced in January. In April, Network International received an initial takeover offer from a group of private equity firms, which was then topped by Brookfield Asset Management whose $2.8 billion offer was accepted by the Board in June. Following reports earlier this year of a bidding war between Visa Inc. and Mastercard Incorporated to acquire cloud-based issuer processor and core banking software provider Pismo.”
01. Alibaba Group Holding Limited (NYSE:BABA)
Price Reaction after the Price Target Cut: -1.21 (-1.41%)
On October 9, Citigroup revised the price target for Alibaba Group Holding Limited (NYSE:BABA) down from $151.00 to $147.00. The stock’s current market price is $84.85, marking a 1.4% decrease. This adjustment was made within the context of the e-commerce and technology industry. Alibaba Group Holding Limited (NYSE:BABA) shares fell by 3.5% on Monday following a surprising announcement that outgoing CEO Daniel Zhang would step down from his roles as chairman and CEO of Alibaba Group Holding Limited (NYSE:BABA) and its cloud business. This move, unexpected after Zhang’s previous departure announcement in June, led to Eddie Wu taking on the interim positions of chairman and CEO for the cloud business. These leadership changes have introduced uncertainty into Alibaba Group Holding Limited (NYSE:BABA) trajectory, impacting market sentiment amid the evolving landscape of the technology and e-commerce sector.
L1 Long Short Fund made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its second quarter 2023 investor letter:
“Alibaba Group Holding Limited (NYSE:BABA) (Long -18%) shares weakened in recent months as Chinese reopening strength faded and macro-economic datapoints began sequentially declining. Nevertheless, we believe the Chinese government will use consumption as a key lever to reinvigorate the economy post-COVID lockdowns. Alibaba remains a high-quality business with leading positions in both eCommerce and Public Cloud, and management is taking proactive steps to unlock shareholder value. It has announced plans to split into six major business groups – Cloud Intelligence, Taobao Tmall, Local Services, Global Digital, Cainiao Smart Logistics and Digital Media, and Entertainment Group. Each group will be managed independently, with a separate CEO and board, have the flexibility to raise external capital and potentially pursue separate IPOs. We believe this restructure will be a strong positive catalyst to unlock the sum-of-the-parts valuation upside in the company.”
Disclosure: None. You can also take a look at 12 Best Artificial Intelligence (AI) Stocks To Buy According to Hedge Funds and 11 Best Stocks to Buy in Falling Markets According to Hedge Funds.
