Top Analyst Downgrades and Stocks to Sell: Beazer, Model N, Sprouts and More

September 10, 2013 by Jon C. Ogg

Bull and Bear
Source: Jon Ogg
Volatility in the stock market is back and interest has risen handily from the lows. Now investors are looking for ideas for stocks they should buy, as well as which stocks to sell or avoid. 24/7 Wall St. reviews dozens of Wall Street research calls each and every day. Some turn out to be value stocks or growth stocks, and others are negative research calls. These are this Tuesday’s top analyst downgrades and cautious research notes from Wall Street.

Bank of Ireland (NYSE: IRE) was started as Sell at Societe Generale.

Beazer Homes USA Inc. (NYSE: BZH) was downgraded to Neutral from Outperform with target price down to $20 from $22 (versus $17.63 close) at Credit Suisse.

Dollar General Corp. (NYSE: DG) was downgraded to Equal Weight from overweight by Barclays.

D.R. Horton Inc. (NYSE: DHI) was downgraded to Neutral from Outperform with its target price lowered to $23 from $24 (versus $19.28 close) at Credit Suisse.

Marathon Petroleum Corp. (NYSE: MPC) was downgraded to Neutral from Outperform at Credit Suisse.

Model N Inc. (NYSE: MODN) has only been public since March and was already way off its highs. Now it has lowered guidance, and we have seen analyst downgrades from the likes of J.P. Morgan, Stifel Nicolaus and Raymond James. This was already trading as a busted IPO under the $15.50 price after the sell-off, but now shares are down another 35% to a new low of less than $10.

NVR Inc. (NYSE: NVR) was downgraded to Underperform at Credit Suisse.

NuStar GP Holdings LLC (NYSE: NSH) was downgraded to Underperform from Neutral and the price target was cut to $22 from $27 (versus $23.27 close) at Credit Suisse.

Sprouts Farmers Market Inc. (NYSE: SFM) saw its quiet period end and the valuation and appreciation already has gotten too rich for the bulk of analysts covering it. The grocery chain was started as Neutral at Credit Suisse, Goldman Sachs and also UBS. It was also started as Underperform at BofA/Merrill Lynch.