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Today's most important downgrades

Published 28/11/2022, 23:04
© Reuters.
JPM
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BARC
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JPMorgan (NYSE:JPM) downgraded First Solar (NASDAQ:FSLR) to Neutral from Overweight with a price target of $190.00 (from $147.00) given the stock’s outperformance since the announcement of the US Inflation Reduction Act. The analysts view the company as the biggest near/medium-term beneficiary from the IRA’s domestic manufacturing tax credits; however, with the stock up more than 120% over the past four months, they believe the “easy money” has now been made. Shares fell more than 3% today.

Barclays (LON:BARC) downgraded Beyond Meat Inc . (NASDAQ:BYND) to Underweight from Equalweight and lowered its price target to $10.00 from $13.00 amid a lack of visibility. Although the company expects to turn cash flow positive by H2/23, the analysts remain skeptical given current cash burn rates and a sizable net loss of over $100 million in Q3/22.

Twilio (NYSE:TWLO) shares fell more than 3% today after Jefferies downgraded the company to Hold from Buy and lowered its price target to $50.00 from $110.00. Among the reasons behind the downgrade, the analysts mentioned: (1) sustained headwinds to near-term growth, (2) not having high conviction the Software revenue can grow over 30%, and (3) not seeing the medium-term growth and margin outlook as particularly attractive.

Morgan Stanley (NYSE:MS) downgraded AppLovin Corp (APP) to Equalweight from Overweight and lowered its price target to $20.00 from $35.00, noting that macro conditions give reason to take a more cautious view in the near term. Shares were down more than 3% today.

BofA Securities downgraded Diamondback Energy (NASDAQ:FANG) to Underperform from Neutral with a price target of $143.00. Shares were down more than 3% today.

By Davit Kirakosyan

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