Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Etsy, Moderna , DXC Technology, and MediaAlpha.
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Etsy downgraded on soft guidance
Bernstein downgraded Etsy (NASDAQ:ETSY) to Market Perform from Outperform and cut its price target to $100.00 from $120.00, following weaker-than-expected guidance.
"We are late on this one. You live and you learn. We were hoping that Q3 GMS guidance and management commentary could draw a line in the sand on the business returning to growth, but it wasn't quite as reassuring."
Q2 EPS of $0.45 and revenue of $628.9 million came in above the consensus estimates, however, Q3 revenue and gross merchandise value (GMV) guidance missed expectations. As a result, shares dropped more than 13% yesterday.
Moderna receives two downgrades after Q2 beat
Moderna (NASDAQ:MRNA) received two downgrades following the Q2 earnings announcement. The company posted better-than-expected revenue in Q2 despite falling steeply due to weaker post-pandemic demand for its COVID-19 vaccine.
TD Cowen downgraded the company to Market Perform from Outperform and cut its price target to $125.00 from $145.00, noting it stepping back to the sideline as the impact of COVID becomes more settled and in anticipation of new product launches.
Meanwhile, Deutsche Bank downgraded to Hold from Buy and cut its price target to $125.00 from $200.00
"Upside risks include improved commercial performance, approval of RSV vaccine and upcoming flu data in Q3'23, whilst downside risks are the same events."
DXC Technology downgraded at several firms following disappointing Q1
Several Wall Street firms, including TD Cowen, Citi, Deutsche Bank, BMO Capital, and RBC Capital, downgraded DXC Technology (NYSE:DXC) after the company reported worse-than-expected Q1 earnings and a disappointing outlook.
TD Cowen downgraded the company to Market Perform from Outperform and cut its price target to $25.00 from $34.00.
"While we viewed its prior progress as underappreciated, the magnitude of the downside surprise in 1Q results and reduced FY24 outlook leave us with little to support for our thesis, which had been predicated on revenue growth inflecting into positive territory in the coming quarters, a cleaner path to improved profitability, and continued FCF momentum."
Citi downgraded the company to Neutral from Buy and cut its price target to $25.00 from $32.00, noting that the underlying business and client/employee relationships have improved in recent years but a return to revenue growth is proving to still be difficult.
MediaAlpha cut to Sell
Mediaalpha (NYSE:MAX) shares fell more than 2% pre-market today after Citi downgraded the company to Sell from Neutral with a price target of $8.00 (from $7.00), as reported in real time on InvestingPro. The bank noted that it finds it difficult to justify the current valuation amid continued P&C uncertainties.
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