4 big analyst cuts: Morgan Stanley sours on Alcoa
Investing.com | Author Davit Kirakosyan
Published Jun 22, 2023 06:08AM ET
Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Alcoa, DigitalOcean, Teleflex, and Xcel Energy.
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Alcoa stock drops on Morgan Stanley downgrade/h2
Alcoa (NYSE:AA) shares fell more than 3% pre-market today after Morgan Stanley cut the company to Underweight from Equalweight and lowered its price target to $33.00 from $43.00.
Morgan Stanley said it sees "material downside to consensus estimates for Alcoa," adding, "As negative earnings revisions materialize, we believe the stock will face downward pressure and underperform."
The firm's estimates for EBITDA in Q2, 2023, and 2024 are substantially lower than the consensus, and it noted that Alcoa shares are currently trading well above their historical average. In terms of its lowered expectations, the firm noted:
The large negative revisions in our earnings estimates and [price target] are mainly due to the high operating leverage AA has to aluminum prices; our commodity team has lowered its aluminum price forecasts in the near to mid-term.
DigitalOcean stock plunges on downgrade/h2
Piper Sandler downgraded DigitalOcean (NYSE:DOCN) to Underweight from Neutral with a price target of $35.00. As a result, shares plunged more than 5% pre-market today.
The company reported its Q1 earnings last month, with revenue beating the consensus estimate, while
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