Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Home Depot, Alteryx, International Flavors & Fragrances, and Willis Towers Watson.
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Home Depot cut to Market Perform ahead of Q2
Home Depot (NYSE:HD) shares fell more than 1% premarket today after Telsey downgraded the company to Market Perform from Outperform with a price target of $315.00 ahead of Q2/24 earnings report on August 15.
The rating change is based on the expectation of a slightly steeper deceleration in Home Depot's performance due to weakened housing market trends, cautious consumer spending, and the normalization of gains related to COVID-19 and government stimulus over the past three years.
Despite the stock likely already reflecting most of the negative news and operational challenges, Telsey doesn't foresee it outperforming the market in the near term, considering the recent substantial increase in price since May 2023.
Alteryx slashed to Neutral following Q2
Piper Sandler downgraded Alteryx (NYSE:AYX) to Neutral from Overweight and cut its price target to $30.00 from $68.00 following the company’s reported Q2 earnings, which resulted in a share price drop of more than 25% premarket today.
We are lowering our estimates and rating on AYX to Neutral as the Q2 ARR shortfall ($14M miss driven by a shift in customer behavior that has made standalone expansions challenging) has clouded visibility into the growth trajectory going forward.
2 more downgrades
Stifel downgraded International Flavors & Fragrances (NYSE:IFF) to Hold from Buy and cut its price target to $85.00 from $123.00.
Shares plunged more than 22% premarket today after the company reported worse-than-expected Q2 results and cut its guidance.
The miss and lowered guidance largely reflects ongoing customer destocking, hurting volumes and resulting in more significant manufacturing absorption costs related to improving inventories/cash flow.
Willis Towers Watson (NASDAQ:WTW) shares fell 1% premarket today after BMO Capital downgraded the company to Underperform from Market Perform and cut its price target to $205.00 from $230.00, as reported in real time on InvestingPro.
Following 2Q’s EPS miss and guidance cut, our 2024 EPS estimates fall ~5% below consensus, predicated on our view that Willis will continue to re-invest much of its expense program’s savings in talent to re-gain lost market share.
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