By Davit Kirakosyan
Evercore ISI downgraded Marriott International (NASDAQ:MAR) to In Line from Outperform with a price target of $180.00 despite the company’s reported solid Q4 results.
"Leisure demand is still strong, particularly cross-border. Group revenues are pacing +20% y/y, noting growth through each quarter, and '24 group pace is +5% ahead y/y. While Greater China is the only region with RevPAR still below '19, MAR notes optimism in the recovery," the firm said.
Shares gained nearly 4% yesterday after the company reported Q4 EPS of $1.96, better than the consensus estimate of $1.83, with revenue coming in at $5.92 billion, compared to the consensus estimate of $5.39B. The company expects Q1 adjusted EPS in the range of $1.82-$1.88, better than the consensus expectations.
RBC Capital downgraded Akamai Technologies (NASDAQ:AKAM) to Sector Perform from Outperform and cut its price target to $85.00 from $135.00 following the company’s reported Q4 results.
While the results were in line with expectations, the firm believes the major story of the earnings call was the clear change in strategy to going all-in on Linode/Compute (as Security growth slows) backed by significant Compute OpEx (headcount) and CapEx plans in 2023. “We shift to the sidelines as we believe this move alters the risk-reward profile, and we would wait for evidence it can pay off before getting back involved,” added the firm.
Shares plunged more than 10% today despite profit and revenue beat.
Citi downgraded Terex (NYSE:TEX) to Neutral from Buy, while raising its price target to $63.00 from $45.00 to reflect last week’s Q4 earnings announcement.
“Record backlogs and solid end market fundamentals help to provide solid earnings visibility for 2023, and we currently project +10% yr/yr earnings growth in 2024,” said the firm, adding that the path for outperformance becomes less clear given strong YTD returns, and thus it believes a Neutral rating is warranted at this time.
Tellurian (NYSE:TELL) shares plunged more than 5% today after BofA Securities downgraded the company to Underperform from Buy and cut its price target to $1.50 from $4.00.
“Our outlook for 2023 is dimmed by depressed natural gas prices and an increasingly uncertain future for the company’s Driftwood LNG (liquefied natural gas) export facility,” said the firm.
American Eagle Outfitters (NYSE:AEO) shares fell nearly 3% today after Jefferies downgraded the company to Hold from Buy and cut its price target to $16.00 from $18.00, citing the company’s exposure to the slowdown in consumer spending.
CFRA downgraded Cadence Design Systems Inc (NASDAQ:CDNS) to Buy from Strong Buy, while raising its price target to $232.00 from $218.00.
Shares rose more than 7% yesterday after the company topped Q4 estimates and provided a better-than-expected outlook.
Benchmark downgraded Howmet Aerospace Inc (NYSE:HWM) to Hold from Buy.
Shares gained more than 4% yesterday after the company reported in-line EPS and better-than-expected revenues for Q4.
Societe Generale downgraded Eli Lilly (NYSE:LLY) to Sell from Hold with a price target of $278.00. Shares closed more than 3% lower today.
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