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. FedEx Corporation (NYSE:FDX)
Price Reaction after the Price Target Cut: -4.84 (-1.73%)
On April 2, BofA Securities analyst Ken Hoexter revised down the price target for FedEx Corporation (NYSE:FDX) from $346.00 to $340.00, despite retaining a Buy rating for the company. FedEx Corporation (NYSE:FDX) operates in the logistics and delivery services sector, facilitating global shipping and transportation solutions. FedEx exceeded expectations in the third quarter, with an adjusted EPS increase of 13% year-over-year, surpassing both the target set by Bank of America Securities and the consensus estimate. The company remains on course with its cost-saving initiatives, particularly the DRIVE program, which is anticipated to deliver $1.8 billion in savings in fiscal 2024, with an additional $4.2 billion planned for subsequent years. These savings are forecasted to significantly bolster FedEx Corporation (NYSE:FDX) EPS, indicating strong potential for profitability growth. Moreover, further supporting the Buy rating, FedEx has demonstrated effective cost management strategies, including notable reductions in incentive compensation, which contributed to the earnings beat for the quarter. Despite the short-term negative market response, the Buy rating by Ken Hoexter implies confidence in FedEx Corporation (NYSE:FDX) long-term growth potential.
Artisan Value Fund stated the following regarding FedEx Corporation (NYSE:FDX) in its fourth quarter 2023 investor letter:
“Other Q4 laggards were global reinsurer Arch Capital and shipping company FedEx Corporation (NYSE:FDX)—holdings that pulled back following large gains. Back in September 2022, FedEx was selling for less than 8X our estimate of normalized earnings due to substantial pessimism. Although the demand environment remains challenging globally, particularly in the Express segment, the company is delivering solid earnings growth driven by cost savings initiatives. FedEx’s DRIVE program, which seeks to deliver $4 billion in permanent cost reductions by creating an integrated air-ground network similar to that of rival UPS, is showing progress, and workforce reductions have also been enacted. While operating results can be choppy, FedEx’s longer term business economics are highly favorable given the global shipping industry’s consolidated structure and massive barriers to entry that afford operators with pricing power to counter cost inflation and earn respectable returns on capital over the business cycle.”
04. General Electric Company (NYSE:GE)
Price Reaction after the Price Target Cut: -3.38 (-2.42%)
On April 2, JPMorgan Chase & Co. revised its target price for General Electric Company (NYSE:GE) downward from $180.00 to $148.00, while maintaining an “overweight” rating on the stock. General Electric Company (NYSE:GE) operates in the industrial conglomerates sector, providing a diverse range of products and services across various industries. On January 23, General Electric Company (NYSE:GE) last released its earnings. The conglomerate reported earnings per share of $1.03 for the quarter, surpassing the consensus estimate of $0.90 by $0.13. Revenue for the quarter stood at $19.42 billion, exceeding analysts’ expectations of $17.27 billion. General Electric Company (NYSE:GE) achieved a return on equity of 10.88% and a net margin of 13.95%. Quarterly revenue witnessed a 15.4% increase compared to the same quarter the previous year. In the corresponding quarter of the prior year, the company had earned $1.24 earnings per share. Market reacted negatively to the decision of price target cut by JPMorgan Chase & Co. as the stock fell by 2.42% on the closing bell on April 2. Despite this short-term market response, the “overweight” rating implies confidence in General Electric Company (NYSE:GE) long-term growth prospects. JPMorgan’s decision to maintain an optimistic view on General Electric Company (NYSE:GE) underscores its belief in the company’s ability to overcome challenges and capitalize on opportunities in the industrial sector.
03. Tesla, Inc. (NASDAQ:TSLA)
Price Reaction after the Price Target Cut: -8.59 (-4.90%)
On April 2, Baird analysts adjusted their price target for Tesla, Inc. (NASDAQ:TSLA) downward from $300 to $280, while maintaining an outperform rating on the shares. Tesla, Inc. (NASDAQ:TSLA) operates in the electric vehicle (EV) industry, pioneering advancements in sustainable transportation and energy solutions. Baird’s decision to lower the price target indicates a reassessment of Tesla, Inc. (NASDAQ:TSLA) valuation, taking into account recent developments and market trends. The market reacted negatively to the news as evident from the 4.90% price drop following the price target cut. Despite this short-term negative market response, the outperform rating implies confidence in Tesla, Inc. (NASDAQ:TSLA) long-term growth potential. Baird’s rationale for the price target adjustment highlights Tesla, Inc. (NASDAQ:TSLA) first-quarter deliveries, which fell below estimates. The company cited several one-time factors impacting production, contributing to the lower-than-expected results. While the price target revision may influence near-term sentiment, the outperform rating suggests Baird sees intrinsic value in Tesla, Inc. (NASDAQ:TSLA) innovative approach and its potential to shape the future of transportation.
02. Disc Medicine, Inc. (NASDAQ:IRON)
Price Reaction after the Price Target Cut: -2.17 (-6.36%)
On April 2, Morgan Stanley analyst Jeffrey Hung revised down the price target for Disc Medicine, Inc. (NASDAQ:IRON) from $75.00 to $40.00, all while retaining an Equal Weight rating on the company’s shares. Disc Medicine, Inc. (NASDAQ:IRON) operates in the biotechnology industry, specializing in the development of novel therapies for hematologic diseases. The market repsonded negatively to the news as the share price fell by 6.36% on the closing bell on April 2. Despite this short-term market response, the Equal Weight rating implies a balanced view of Disc Medicine, Inc. (NASDAQ:IRON) prospects. Disc Medicine, Inc. (NASDAQ:IRON) released its latest earnings results on March 21. The company reported a loss of $0.97 per share for the quarter, falling short of the consensus estimate of $0.75 by $0.22. While the price target reduction by Morgan Stanley may impact short-term sentiment, the Equal Weight rating suggests Morgan Stanley sees Disc Medicine, Inc. (NASDAQ:IRON) prospects as neither significantly bullish nor bearish, but rather in line with market expectations.
01. Humana Inc. (NYSE:HUM)
Price Reaction after the Price Target Cut: -47.12 (-13.41%)
On April 2, Barclays adjusted the price target for Humana Inc. (NYSE:HUM) downward, reducing it from $356.00 to $310.00, while maintaining an Equal Weight rating for the stock. Humana Inc. (NYSE:HUM) operates in the healthcare sector, specializing in health insurance and related services. The 13.4% decline in price following the reduction in the price target indicates that investors have responded negatively to the news. Despite this significant market response, the Equal Weight rating implies a neutral stance on Humana Inc. (NYSE:HUM) prospects. While the price target reduction may influence short-term sentiment, the Equal Weight rating suggests Barclays sees Humana Inc. (NYSE:HUM) prospects as in line with market expectations.
Diamond Hill Select Strategy stated the following regarding Humana Inc. (NYSE:HUM) in its fourth quarter 2023 investor letter:
“Only one stock detracted from performance in Q4 — health insurance company Humana Inc. (NYSE:HUM). The company faces growing concerns about heightened medical utilization, which would pressure health insurers’ medical loss ratios. Given heightened utilization among the Medicare Advantage population, there is some uncertainty among investors as to whether Humana’s rate bids for 2024 will prove adequate to cover increased costs. However, we maintain our conviction in Humana’s position as a leading insurer catering to the senior population with the opportunity to increase penetration of Medicare Advantage enrollment within the broader Medicare-eligible population.”
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