Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Peloton Interactive, Dick's Sporting Goods, Analog Devices, and Estée Lauder.
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Peloton Interactive downgraded by two Wall Street firms after quarterly miss
Peloton Interactive (NASDAQ:PTON) was hit with two downgrades after reporting a fiscal Q4 EPS miss and lower-than-expected revenue guidance, as well as a cash flow warning - which brought shares down by 22% on Wednesday.
BofA Securities cut the company to Neutral from Buy and slashed its price target in half - to $6.50 from $13 - on limited visibility on growth initiatives. “We expect app users, FaaS growth, partnerships, Intl marketing to drive gross adds, but higher churn will limit net sub growth,” wrote BofA.
Meanwhile, Needham downgraded the company to Hold from Buy due to concerns about medium-term trends and the macro environment.
Shares were ticking down fractionally in the premarket after Wednesday's slide.
A pair of downgrades for Dick's Sporting Goods' following Q2 miss
On Wednesday Wedbush downgraded Dick’s Sporting Goods (NYSE:DKS) to Neutral from Outperform, with a price target of $115.00, after the company's Q2 miss and guidance cut, as reported in real time on InvestingPro.
Wedbush wrote that, although the company’s valuation is low relative to historical levels, it cut estimates and the retailer's rating given more limited visibility to the sales outlook and bottom for margins.
The move closely followed BofA's downgrade of the stock, also issued on Wednesday morning.
Two more downgrades
Piper Sandler downgraded Analog Devices (NASDAQ:ADI) to Neutral from Overweight with a price target of $190.00 after the company reported weaker-than-expected results for Q3 and provided an outlook for Q4 that trailed analyst estimates.
While the company is doing almost everything right in terms of reducing excess inventory, we simply are not comfortable with the timeframe of the economic downturn. Given ~50% exposure to the industrial segment for ADI, we feel the company's prospects are likely to be caught up in the economic slowdown, and as such, we are choosing to move to the sidelines.
Bernstein downgraded Estée Lauder (NYSE:EL) to Market Perform from Outperform and cut its price target to $160.00 from $230.00. Shares fell more than 1% premarket today.
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