Catch up on today’s top five analyst downgrades with this list compiled by The Fly: 1. Arthur J. Gallagher (AJG) downgraded to Underperform from Buy at BofA with analyst Joshua Shanker modeling downside for revenue in the near term due to recessionary pressures while noting that a “material” tax increase in 2022 will slow the company’s GAAP earnings growth. 2. Noble Energy (NBL) downgraded to Equal Weight from Overweight at Morgan Stanley with analyst Devin McDermott citing Chevron’s (CVX) deal to buy Noble in an all-stock transaction valued at $10.38 per share, a 7.5% premium to the prior day close and blow to his firm’s valuation of $11 per share. 3. International Paper (IP) downgraded to Hold from Buy at Argus with analyst David Coleman saying the company is well-run and offers a strong track record in its industry, but it faces near-term challenges related to COVID-19 with uneven volume trends making earnings less predictable. 4. D.R. Horton (DHI) downgraded to Neutral from Outperform at Wedbush with analyst Jay McCanless citing valuation. 5. Vipshop (VIPS) downgraded to Neutral from Overweight at JPMorgan with analyst Alex Yao stating the company’s Q2 results suggest management is willing to reinvest the majority of the incremental profitthrough category mix optimization and saving on fulfillment expenses, in exchange for faster growth of active buyers, in contrast to the analyst’s earlier view that Vipshop would take a more balanced approach. This list is just a portion of The Fly’s full analyst coverage. To see The Fly’s full Street Research coverage, (click here.):(https://thefly.com/streetResearch.php)
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