Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Urban Outfitters, Keysight Technologies, Design Therapeutics, and Avid Technology.
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Urban Outfitters downgraded at Citi ahead of Q2
Citi downgraded Urban Outfitters (NASDAQ:URBN) to Neutral from Buy with a price target of $40.00 (from $36.00), as reported in real time on InvestingPro.
The bank expects the company to beat Q2 earnings estimates and provide strong guidance next Tuesday but believes the company's risk/reward now looks balanced.
"We expect Anthro/FP will continue to show comp strength this year and that UO will improve sequentially in 2H. However, we believe the UO brand will be slower to turn around given fashion inconsistency (resulting in lower customer loyalty) and a tougher competitive landscape, ultimately limiting possible upside to EPS beyond what is already anticipated by the market."
Keysight Technologies cut to Underperform at BofA Securities
BofA Securities downgraded Keysight Technologies (NYSE:KEYS) to Underperform from Neutral and cut its price target to $148.00 from $163.00 ahead of the upcoming Q3 earnings report on Thursday, noting that Keysight's order trends are likely to get worse before they get better.
The bank anticipates a more significant decline in Q3 orders than what consensus forecasts and sees downside risks to 2024 estimates. “While we view Keysight as a well-managed market share leader, the macro backdrop is likely to limit EPS growth,” added BofA.
Two more downgrades
After providing business updates and outlining upcoming milestones within its clinical and research-stage pipeline of novel GeneTAC™ small molecules, as well as announcing its Q2 results, Design Therapeutics (NASDAQ:DSGN) witnessed its stock plummet by more than 40% pre-market today. As a consequence, the company received two downgrades from Wall Street analysts today.
RBC Capital downgraded the company to Sector Perform from Outperform and cut its price target to $7.00 from $23.00. Meanwhile, SVB MoffettNathanson downgraded to Market Perform from Outperform with a price target of $6.00 (from $22.00).
Truist Securities downgraded Avid Technology (NASDAQ:AVID) to Hold from Buy and cut its price target to $27.05 from $45.00.
Last week, the company was downgraded by two other firms, Northland Capital Markets and B.Riley, following its Q2 earnings announcement.
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