4 big analyst cuts: Snap slashed to Hold, Southwest gets several downgrades
Investing.com | Author Davit Kirakosyan
Published Jul 28, 2023 07:14AM ET
Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Snap, Southwest Airlines, Mersana, and Perficient.
EPS and revenues came in better than the consensus estimates, the company missed expectations on its guidance, which resulted in a share price drop of more than 14% on Wednesday.
Southwest Airlines receives 3 downgrades after Q2 report/h2
Southwest Airlines (NYSE:LUV) received three downgrades, following its Q2 earnings yesterday. While EPS was in line with consensus estimates and revenue beat expectations, the load factor was weaker than expected and could explain post-earnings weakness in shares, which closed nearly 9% lower yesterday.
Deutsche Bank downgraded the company to Hold from Buy and cut its price target to $38.00 from $52.00, noting "earnings forecast cut and limited share price upside as the company optimizes its post-COVID network."
BofA Securities downgraded the company to Neutral from Buy and cut its price target to $35.00 from $45.00. Meanwhile, Raymond James downgraded to Outperform from Strong Buy and cut its price target to $40.00 from $47.00.
Mersana received several downgrades following UPLIFT clinical trial results/h2
After announcing UPLIFT clinical trial did not meet its primary endpoint, Mersana Therapeutics (NASDAQ:MRSN) shares plunged more than 72% yesterday. The company got downgraded at a number of Wall Street firms, including Baird, Citi, BTIG, JPMorgan, Guggenheim, Wedbush, and Truist Securities.
Citi downgraded the company to Neutral from Buy and cut its price target to $1.00 from $8.00, while JPMorgan slashed its rating to Underweight from Neutral.
Truist Securities downgraded the stock to Hold from Buy.
There is no way to sugarcoat it: the UPLIFT topline data is very disappointing, and based on the fact that MRSN is winding down development efforts with UpRi, we have low expectations of any saving graces that would enable the drug to be salvaged.
Perficient downgraded at JPMorgan after Q2 miss/h2
JPMorgan downgraded Perficient (NASDAQ:PRFT) to Neutral from Overweight and cut its price target to $70.00 from $84.00.
Shares plummeted more than 26% yesterday after the company reported a Q2 miss and cut its 2023 outlook.
JPMorgan decided to downgrade the company due to its projections of relatively modest mid-single-digit revenue growth for the next year, even assuming a return to normal demand trends. Furthermore, the absence of a positive catalyst, coupled with ongoing demand uncertainty across the industry, might restrict the potential for multiple expansions throughout the rest of the year.
***
Get ready to supercharge your investment strategy with our
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.