10 analyst pans to watch: Coinbase cut after FTX crash

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Here are stocks you might want to avoid in the coming days after negative analyst actions last week, all covered first on InvestingPro+.

1. Hasbro Inc (NASDAQ:HAS) was double downgraded by Bank of America to Underperform from Buy with a price target of $42, down from the prior $72, as a result of the firm’s deep dive on the company’s business “Magic: The Gathering.” The trading card game generates about 15% of Hasbro’s total revenue and as much as 35% of EBITDA. The analyst said, "The primary concern is that Hasbro has been overproducing Magic cards which has propped up Hasbro’s recent results but is destroying the long-term value of the brand."

2. Coinbase (NASDAQ:COIN) was downgraded by Bank of America to Neutral from Buy with a price target of $50, down from the prior $77. The analyst said the recent crash of FTX, one of the world’s largest cryptocurrency exchanges, has yielded “a number of new headwinds over the near/medium-term” for Coinbase. Separately, Mizuho reiterated a Neutral rating on Coinbase as daily industry volumes are back to trending 30-40% below YTD averages, which suggests “worn-out consumers who appear uninterested in the category.”

3. SAP SE (NYSE:SAP) (ETR:SAPG) was downgraded by Jefferies to Underperform from Outperform with a price target of €90 ($92.17) from the prior €117.79. The analyst said, "We believe the new (more conservative) CFO will fail to deliver on promised upgrades" and reflected negatively on the valuation of SAP stock, which he said remains “amongst the most expensive in the sector.”

4. RH (NYSE:RH) was downgraded by Wedbush to Neutral from Outperform with a price target of $270, down from the prior $274.

5. HP (NYSE:HPQ) was downgraded by Credit Suisse to Neutral from Outperform with a price target of $33, down from the prior $29.29. The analyst said, "We believe revenue and margins will be challenged near term. ... Risks include stronger consumer demand, increased S/H return, ability to hold pricing, supply chain challenges, FX and competition."

6. Alcon (NYSE:ALC) was downgraded by Societe Generale (OTC:SCGLY) to Hold from Sell with a price target of CHF60.20 ($62.85).

7. Dominion Resources (NYSE:D) was downgraded by Evercore ISI to In Line from Outperform with a price target of $78. The analyst said, "We are downgrading Dominion from Outperform to In Line following the business review announced with Q3 release on Nov 4th."

8. Norwegian Cruise Line (NYSE:NCLH) was double downgraded by Credit Suisse to Underperform from Outperform with a price target of $14, down from the prior $20. While the analyst describes NCLH as a “quality” company, they see risk to estimates and valuation after the company “materially outperformed” year-to-date (YTD). Norwegian Cruise Line stock is down about 15% YTD, outperforming the S&P 500.

9. Target Corporation (NYSE:TGT) was downgraded by Deutsche Bank to Hold from Buy with a price target of $144, down from the prior $183. The analyst said, "We have lower confidence that the company can meaningfully recapture margin in 2023 on lingering markdown pressure, particularly in light of comp growth coming under pressure."

10. Teva Pharma Industries Ltd ADR (NYSE:TEVA) was downgraded by JPMorgan to Underweight from Neutral with a price target of $10, down from the prior $11. The analyst said, "As we think about 2023 and beyond, we struggle with TEVA’s growth outlook with ongoing erosion across parts of the portfolio, with the NA generics business consistently underperforming and with limited visibility on the biosimilar Humira opportunity."