Catch up on today’s top five analyst downgrades with this list compiled by The Fly: 1. Splunk (SPLK) downgraded to Equal Weight from Overweight at Morgan Stanley with analyst Keith Weiss viewing the current valuation as undemanding but sees a lack of near-term catalysts and “more bumps expected on the road ahead.” 2. Verizon (VZ) downgraded to Neutral from Buy at MoffettNathanson with analyst Craig Moffett saying if the conclusion that AT&T’s (T) promotional stance is to continue, it is “faced with a lose-lose choice,” noting that Verizon can continue to stand by and its “growth will suffer further,” or respond and its growth will recover, but profitability will decline.” 3. Texas Roadhouse (TXRH) downgraded to Neutral from Outperform at Baird with analyst David Tarantino saying while he still has a “very positive view” of the company’s fundamentals, near-term sales outlook, and longer-term growth, the stock has rallied 28% year-to-date and he believes the near-term risk/reward has become more balanced. 4. L3Harris Technologies (LHX) downgraded to Hold from Buy at Benchmark with analyst Josh Sullivan saying while the company’s positioning in electronic warfare, drones, space and a commercial R&D structure are desirable in the current defense environment, he sees near-term headwinds from international defense sales. 5. Flagstar Bancorp (FBC) downgraded to Neutral from Outperform at Wedbush with analyst Henry Coffey arguing that the acquisition of Flagstar by New York Community Bank (NYCB) confirms an important thesis that he thinks will continue to play out as the mortgage market starts to cool off, namely consolidation. 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)
previous post
next post