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. Fox Corporation (NASDAQ:FOXA)
Price Reaction after the Price Target Cut: -0.69 (-2.34%)
On February 8, Wells Fargo & Company, operating within the media industry, made adjustments impacting Fox Corporation (NASDAQ:FOXA). The firm reduced Fox Corporation (NASDAQ:FOXA) target price from $30.00 to $28.00 while maintaining an “Underweight” rating for the stock. Following this downward revision, the market’s response was notable, with Fox Corporation (NASDAQ:FOXA) stock price decreasing by 2.34% compared to its previous closing price of $29.77. By revising the target price downwards, Wells Fargo & Company may be signaling a more cautious outlook on FOXA’s growth prospects in the media sector. Despite the negative adjustment to the target price, Wells Fargo & Company’s continued classification of Fox Corporation (NASDAQ:FOXA) as “Underweight” suggests skepticism about the stock’s investment attractiveness relative to its peers in the media industry. This rating indicates that Wells Fargo & Company believes Fox Corporation (NASDAQ:FOXA) may underperform compared to the broader market or industry benchmarks. The market’s reaction to the target price reduction underscores investor sensitivity to analyst assessments and reflects their assessment of Fox Corporation (NASDAQ:FOXA) future trajectory. As Fox Corporation (NASDAQ:FOXA) navigates challenges and opportunities in the evolving media landscape, investors will closely monitor how the company executes its strategic initiatives and adapts to changing market dynamics.
04. Snap Inc. (NYSE:SNAP)
Price Reaction after the Price Target Cut: -0.31 (-2.72%)
On February 8, The Goldman Sachs Group revised its target for Snap Inc. (NYSE:SNAP), operating in the social media industry. The target price was lowered from $15.00 to $13.50, maintaining a “Neutral” stance on the stock. Following this adjustment, the market responded with Snap Inc. (NYSE:SNAP) stock price declining by 2.72% compared to its previous closing price of $11.11. The decision by The Goldman Sachs Group to lower Snap Inc. (NYSE:SNAP) target price suggests a reevaluation of the company’s growth prospects and financial performance within the dynamic social media landscape. Despite maintaining a “Neutral” rating, The Goldman Sachs Group’s reduced target price indicates a more tempered outlook on Snap Inc. (NYSE:SNAP) potential for capital appreciation. This rating implies that while the stock may not be expected to outperform significantly, it also may not underperform relative to market or industry benchmarks. Investors may interpret this target price adjustment as a signal to reassess their own expectations and investment strategies concerning Snap Inc. (NYSE:SNAP). As the social media company continues to innovate and adapt to evolving market conditions, market participants will closely monitor how Snap executes its strategic initiatives and addresses challenges in the competitive social media landscape.
Artisan Developing World Fund stated the following regarding Snap Inc. (NYSE:SNAP) in its fourth quarter 2023 investor letter:
“Top contributors to performance for the quarter included social media platform Snap Inc. (NYSE:SNAP). Snap benefited from signs of improved industry demand, improved customer adoption of Snap’s direct response technology platform, and a new partnership with Amazon.”
03. Alibaba Group Holding Limited (NYSE:BABA)
Price Reaction after the Price Target Cut: -2.86 (-3.88%)
On February 8, Susquehanna revised its target for Alibaba Group Holding Limited (NYSE:BABA), a prominent player in the e-commerce industry. The target price was lowered from $150.00 to $135.00, while maintaining a “Positive” outlook on the stock. Following this adjustment, the market responded with Alibaba Group Holding Limited (NYSE:BABA) stock price declining by 3.88% compared to its previous closing price of $72.02. The decision by Susquehanna to lower Alibaba Group Holding Limited (NYSE:BABA) target price indicates a reassessment of the company’s future growth prospects and financial performance within the competitive e-commerce landscape. Despite maintaining a “Positive” rating, Susquehanna’s reduced target price suggests a more cautious stance on Alibaba Group Holding Limited (NYSE:BABA) potential for future appreciation. While still optimistic about the company’s long-term prospects, Susquehanna may believe that near-term challenges or uncertainties warrant a more conservative valuation approach. Investors may interpret this target price adjustment as a signal to reevaluate their own investment thesis and risk assessment for Alibaba Group Holding Limited (NYSE:BABA). As the e-commerce giant navigates through evolving market dynamics and regulatory pressures, market participants will closely monitor Alibaba’s strategic initiatives and execution to gauge its resilience and long-term growth trajectory.
02. Qualys, Inc. (NASDAQ:QLYS)
Price Reaction after the Price Target Cut: -7.52 (-4.24%)
On February 8, Wedbush adjusted its target for Qualys, Inc. (NASDAQ:QLYS), a prominent player in the cybersecurity industry. The target price was lowered from $230.00 to $210.00, while maintaining an “Outperform” rating on the stock. In response to this adjustment, the market reacted with Qualys’ stock price declining by 4.24% compared to its previous closing price of $171.85. The decision by Wedbush to lower Qualys, Inc. (NASDAQ:QLYS) target price indicates a reassessment of the company’s growth prospects and financial performance within the competitive cybersecurity landscape. Despite maintaining an “Outperform” rating, Wedbush’s reduced target price suggests a more conservative outlook on Qualys, Inc. (NASDAQ:QLYS) potential for future appreciation. While still optimistic about the company’s long-term growth prospects, Wedbush may believe that near-term challenges or market conditions warrant a more cautious valuation approach. Investors may interpret this target price adjustment as a signal to review their own investment strategy and risk assessment for Qualys, Inc. (NASDAQ:QLYS). As the cybersecurity industry continues to evolve and face new challenges, market participants will closely monitor Qualys, Inc. (NASDAQ:QLYS) ability to innovate and adapt to changing cybersecurity trends in order to maintain its competitive position and drive long-term value for shareholders.
The London Company Small Cap Strategy stated the following regarding Qualys, Inc. (NASDAQ:QLYS) in its fourth quarter 2023 investor letter:
“Qualys, Inc. (NASDAQ:QLYS) – QLYS reported excellent 3Q23 earnings, showing another acceleration in bookings as well as solid margins. Additionally, the stock benefited from the rotation into growth in December, after dovish comments from the Fed. We have conviction the company should be able to return to its prior organic growth rates over time and still maintain their industry-leading profitability.”
01. PayPal Holdings, Inc. (NASDAQ:PYPL)
Price Reaction after the Price Target Cut: -7.11 (-11.24%)
On February 8, JPMorgan Chase & Co. revised its target for PayPal, a major player in the financial technology industry. The target price was decreased from $75.00 to $70.00, while maintaining an “Overweight” rating on the stock. In response to this adjustment, the market reacted with PayPal’s stock price declining by 11.24% compared to its previous closing price of $58.91. The decision by JPMorgan Chase & Co. to lower PayPal’s target price signals a reassessment of the company’s growth prospects and financial performance within the competitive fintech landscape. Despite maintaining an “Overweight” rating, JPMorgan Chase & Co.’s reduced target price suggests a more conservative outlook on PayPal’s potential for future growth and market performance. While still bullish on the company’s long-term prospects, JPMorgan Chase & Co. may believe that near-term challenges or market conditions warrant a more tempered valuation approach.
Wedgewood Partners stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its fourth quarter 2023 investor letter:
“PayPal Holdings, Inc. (NASDAQ:PYPL) also contributed less to portfolio performance than most holdings during the fourth quarter. The total payment volume handled by PayPal during its most recent quarter grew +15%, which helped drive healthy revenue growth and +20% earnings per share growth. Critically, the Company’s new management team has significant opportunity to drive more revenue and earnings growth across the massive, multi-trillion-dollar payments addressable market. PayPal’s rapidly growing payment processing brand, Braintree, represents one of those revenue growth opportunities, either by raising prices, as the Company had previously used a low-price strategy to establish a beachhead in this market, or by adding value-added services. PayPal’s branded checkout remains the largest volume and profit driver for the business, and we expect this to continue to track in-line with e-commerce growth in the near term, and eventually take share as the Company rolls out new features to its over +400 million users and +30 million merchants. We added to our position with the stock trading at just 10X forward earnings estimates during the quarter because there are many more long-term growth opportunities relative to most financial companies that trade for similar multiples and compared to technology companies that trade for much higher multiples.”
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