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Rivian stock drops following Barclays downgrade: 4 big analyst cuts

Published 02/12/2024, 08:02 AM
Updated 02/12/2024, 08:02 AM
© Reuters — Here is your Pro Recap of the biggest analyst cuts you may have missed today: downgrades at Rivian Automotive, Hershey, Power Integrations, and Duke Energy.

InvestingPro users got this news and reacted in real time! Join now and never miss out on another buying opportunity.

Rivian Automotive drops following downgrade

Barclays downgraded Rivian Automotive (NASDAQ:RIVN) to Equalweight from Overweight with a price target of $16.00 (from $25.00), as reported in real-time on InvestingPro.

Following the downgrade, Rivian shares fell more than 3% pre-market today.

The company is set to report its Q4/23 earnings on Feb 21. Street estimates stand at ($1.35) for EPS and $1.28 billion for revenues.

Hershey cut to Underweight at Morgan Stanley

Hershey (NYSE:HSY) shares fell nearly 1% pre-market today after Morgan Stanley downgraded the company to Underweight from Equalweight, with a price target of $183 (from $191), noting it sees several risks reducing visibility on Hershey's midterm outlook and EPS.

Despite Hershey's Q4 earnings last week offering some reassurance with a stable 2024 EPS outlook and proactive measures on ingredient costs and productivity, Morgan Stanley's concerns have deepened, especially after a 25% move in cocoa prices since their recent note.

The downgrade hinges on challenges including low-quality Q4, rising cocoa prices pressuring margins, and soft organic sales growth in the face of increasing competition/softer demand in confectionery and salty snacks, which make it harder to take price.

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Two more downgrades

Power Integrations (NASDAQ:POWI) shares fell more than 1% pre-market today after Northland Capital Markets downgraded the company to Underperform from Market Perform with a price target of $67.00.

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POWI faces significant headwinds. External USB PD chargers are increasingly being reused, reducing demand. Other designs using pin-forpin compatible GaN MOSFET are available from multiple suppliers, driving pricing pressure. Increasingly, POWI revenue is from power products used in a system where reliability is more highly valued. However, internal power delivery systems markets change slowly. We do not see POWI's revenue recovering to a peak level until CY26 or CY27 and thus downgrade to UP.

BofA Securities downgraded Duke Energy (NYSE:DUK) to Neutral from Buy with a price target of $96.00 (from $105.00), following the company’s reported Q4 miss last week.

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Latest comments

Rivian is another fruad like nikola
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