Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Qualcomm, Roku, Cambium Networks, and Southwest Airlines.
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Qualcomm downgraded following Q3 earnings
Deutsche Bank downgraded Qualcomm (NASDAQ:QCOM) to Hold from Buy and cut its price target to $120.00 from $130.00 following Q3 earnings.
The company reported mixed quarterly results as revenue fell short of estimates amid a softer smartphone demand. Furthermore, Q4 guidance came in below consensus estimates, impacted by the macroeconomic headwinds, weaker global handset units, and channel inventory drawdown.
While we continue to believe the cyclical snapback is a matter of when not if (and build in such a rebound in IoT, Auto and QTL), the duration of the headwinds QCOM continues to face in its Handset segment is leading to rising structural rather than just cyclical questions (i.e. mix, pricing, post-5G lull, etc.).
Roku cut to Neutral
Citi downgraded Roku (NASDAQ:ROKU) to Neutral from Buy with a price target of $100.00 (from $75.00), as reported in real time on InvestingPro.
The bank suggests that there is a possibility for Roku's revenues to reaccelerate in 2024. However, due to the significant rise in the company's shares year-to-date, they believe that this potential growth is already factored into the stock price.
2 more downgrades
Cambium Networks (NASDAQ:CMBM) shares fell more than 4% premarket today after JPMorgan downgraded the company to Underweight from Neutral and cut its price target to $12.00 from $17.00.
Shares plunged more than 30% yesterday after the company reported worse-than-expected Q2 results.
We are downgrading shares of CMBM to Underweight following another hiccup in relation to getting back to a normalized growth backdrop with the last few years comprising supply headwind led growth challenges, followed by demand headwinds for the PMP and PTP product portfolio, and now is running into Enterprise channel headwinds.
Jefferies downgraded Southwest Airlines (NYSE:LUV) to Underperform from Hold and cut its price target to $25.00 from $40.00. Shares fell more than 3% premarket today.
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