Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Tesla, Equinix, Celanese, and Planet Fitness.
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Tesla receives another downgrade
Morgan Stanley downgraded Tesla (NASDAQ:TSLA) to Equalweight from Overweight with a price target of $250.00 (from $200.00), representing the third downgrade this month.
Analysts, who have been one of the most vocal Tesla bulls on the Street in recent years, are now stepping to the sidelines after a massive rally in Tesla shares (up 111% YTD vs. 14% increase in the S&P 500) pushed valuation to “fair” levels.
Recognizing the surge in Tesla stock due to the ongoing AI frenzy on Wall Street, analysts stated that the company is “an AI beneficiary AND an auto company.”
Equinix cut to Perform at Oppenheimer
Oppenheimer downgraded Equinix (NASDAQ:EQIX) to Perform from Outperform following the company’s Analyst Day, as reported in real time on InvestingPro. Shares fell more than 2% yesterday.
The firm said its rating change is due to valuation concerns and guidance that fell short of expectations. According to Oppenheimer, investors were anticipating confirmation that AI would drive significant growth, however, management tempered expectations by stating that it is too early to make accurate forecasts while also cautioning that operational and capital expenditures would remain high.
2 more downgrades
BofA Securities downgraded Celanese (NYSE:CE) to Neutral from Buy and cut its price target to $116.00 from $123.00, noting it sees added weakness in acetyls.
Exane BNP Paribas downgraded Planet Fitness (NYSE:PLNT) to Underperform from Neutral. Shares are down more than 1% pre-market today.
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