6 Stocks Defying the Bull Market With Multiple Analyst Downgrades and Price Target Cuts
The morning roll call of analyst upgrades and downgrades included about 20 companies this Thursday. There are many companies that are falling outside of the strong trends of this earnings season. With about 80% of the S&P 500 having reported earnings for the second quarter of 2018, roughly 70% of those companies are beating expectations. It’s what’s happening with that other 30% of companies that is leaving investors scratching their heads.
24/7 Wall St. tracked six companies that saw three or more analyst downgrades or price target cuts on Thursday, August 9, 2018.
ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD) has managed to defy the odds and initial trading indications. After being down 1.2% at $14.02 on Wednesday ahead of a loss reported on earnings, its shares were indicated down 8% at $12.85 on Thursday morning. On last look, ACADIA shares were up 8% at $15.25. Here were the analyst calls seen:
- JMP Securities maintained its Outperform rating but slashed its price target to $27 from $50.
- Stifel maintained its Hold rating but lowered its target price to $14 from $17.
- Cowen has stayed positive but lowered its price target to $42 from $50.
- JPMorgan slashed its price target to $26 from $50.
Delphi Technologies PLC NYSE: DLPH) is still finding its footing after a split-up of the company, and it has recovered from a post-earnings low. Its shares were last seen down just two cents at $41.96. Still, multiple analyst reports were negative on the target prices, even if the rating was kept positive:
- Barclays lowered its target price to $57 from $62.
- BMO Capital Markets lowered its target to $60 from $70.
- Guggenheim lowered its price target from $57 to $54.
- Oppenheimer lowered its price target from $53 to $52.
- RBC Capital Markets cut its price target to $50 from $60.
elf Beauty Inc. (NYSE: ELF) was up 3.2% at $14.91 on Wednesday ahead of its earnings report, but its ears have been trimmed on an eight-times trading volume spike with a 28% drop down to $10.72, and its shares hit a 52-week low of $10.32 on Thursday. Analysts hit this stock in droves. D.A. Davidson downgraded it to Neutral from Buy and cut the price target to $12 from 23. Citigroup also downgraded it to Neutral, with a target cut to $16 from $24. Stifel maintained its Hold rating but lowered its target to $11 from $17. Piper Jaffray formally downgraded the stock to Underweight from Neutral, and Jefferies lowered its rating to Hold from Buy. Other analyst target cuts and downgrades were seen as follows:
- BMO’s target price went down to $13 from $19.
- JPMorgan’s target went to $11 from $14.
- SunTrust Robinson Humphrey remained positive but lowered its target to $18 from $20.
- Wells Fargo lowered its target from $16 to $13.
Extreme Networks Inc. (NASDAQ: EXTR) was down 32% at $6.09 on Wednesday after revenues were weaker than expected, and shares were fighting for direction on Thursday. Its 52-week trading range is $5.35 to $15.55. JMP Securities maintained its Market Perform rating and lowered its price target to $9 from $12. Craig Hallum lowered its target price to $9 despite remaining positive. Credit Suisse downgraded the stock to Market Perform from Outperform and slashed its target price to $6.50 from $13.
Mylan N.V. (NASDAQ: MYL) closed up 1.8% at $39.23 on Wednesday but was down marginally on Thursday morning and then trading down almost 4% at $37.69 shortly before noon. Raymond James downgraded Mylan to Outperform from Strong Buy and lowered its price target to $44 from $49. Other target price cuts were also seen:
- BMO Capital Markets, to $47 from $50.
- JPMorgan, to $48 from $53.
- Leerink, to $47 from $53.
Southern Co. (NYSE: SO) took a beating on Wednesday, and the gap down of 2% more to $46.09 on Thursday’s opening bell had seen shares recover to a loss of just 0.4% at $46.72 shortly before noon. Barclays downgraded the shares to Equal Weight from Overweight and cut its target price to $48 from $51. Guggenheim lowered its rating to Neutral from Buy and lowered its price target from $50 to $47. Credit Suisse downgraded it to Underperform from Neutral with a $43 price target. Other target cuts were seen as follows:
- JPMorgan, to $45 from $46.
- Macquarie, to $48 from $49.
- SunTrust Robinson Humphrey, from $50 to $48.