Catch up on today’s top five analyst downgrades with this list compiled by The Fly: 1. Altria Group (MO) downgraded to Neutral from Buy at Citi with analyst Adam Spielman saying Altria “comes out worst” among peers because 82% of its economic exposure is to U.S. cigarettes, and if long-term trends continue, this category may disappear within 30 years. 2. Ulta Beauty (ULTA) downgraded to Neutral from Buy at Guggenheim with analyst Steven Forbes saying management’s initial 2021 guidance implies a roughly 320 basis point EBIT margin “reset” relative to 2019, said Forbes, who sees this being related to channel mix pressures along with elevated investment and store labor cost pressures. 3. Avis Budget (CAR) downgraded to Equal Weight from Overweight at Morgan Stanley with analyst Billy Kovanis saying given increases in consensus earnings estimates, he believes that the market has now priced in a meaningful part of the earnings recovery he sees ahead. 4. Darden (DRI) downgraded to Neutral from Buy at MKM Partners with analyst Brett Levy saying while Darden should continue posting a solid recovery of its fundamentals however, its model and valuation have already “taken considerable steps” toward pricing in those gains. 5. Cracker Barrel (CBRL) downgraded to Neutral from Buy at Sidoti with analyst Stephen Anderson arguing that the stock price now fairly reflects the company’s growth outlook. This list is just a portion of The Fly’s full analyst coverage. To see The Fly’s full Street Research coverage, (click here.):(http://thefly.com/streetResearch.php)
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