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Today's most important downgrades

Published 2023-03-01, 06:32 p/m
© Reuters.

By Davit Kirakosyan

JPMorgan and Barrington Research downgraded iHeartMedia (NASDAQ:IHRT) following the company’s reported mixed Q4 results and weaker-than-expected Q1/23 guidance.

JPMorgan downgraded the stock to Underweight from Neutral and cut its price target to $5.00 from $10.00, noting it is not surprised by the softer revenue guide given the uncertain macro backdrop and broad-based pullback on marketing budgets, but struggle with the company’s Q1 EBITDA/margin guide despite prior concerns that all revenue was not created equally.

The firm updated its estimates and now forecast Q1/23 revenue of $790 million (down 6% year-over-year) mainly on lower broadcast and digital revenue reflecting lower brand and national advertising.

Meanwhile, Barrington Research downgraded the stock to Market Perform from Outperform.

Shares plunged more than 23% today.

Several analysts, including Roth/MKM, Imperial Capital, and CFRA downgraded Ambarella (NASDAQ:AMBA) following the company’s announced weak Q1 guidance, despite both Q4 EPS and revenues coming in better than expected.

Roth/MKM downgraded the stock to Neutral from Buy with a price target of $95.00, while CFRA downgraded to Buy from Strong Buy with a price target of $105.00 (from $110.00). Imperial Capital downgraded the company to In-Line from Outperform with a price target of $95.00.

Shares dropped more than 11% today.

JPMorgan downgraded Marqeta (NASDAQ:MQ) to Neutral from Overweight and cut its price target to $6.00 from $9.00.

“While we like the strategic value and long-term operational improvements being put in place at Marqeta, we feel it is time to move to the sideline on the stock given trade-off of lower near-term growth with longer-term certainty due to stepped up renewals including Visa (NYSE:V) that surprised us to the downside,” the investment banking firm said.

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Shares plunged more than 22% today following the company’s reported weaker-than-expected guidance, while Q4 results beat estimates.

Wolfe Research downgraded Universal Health Services (NYSE:UHS) to Peerperform from Outperform.

The company reported its Q4 results, with EPS/revenues coming in better than expected, but annual profit guidance missed the consensus estimates, resulting in a share price drop of more than 8% yesterday.

CFRA downgraded Monster Beverage (NASDAQ:MNST) to Hold from Buy and cut its price target to $100.00 from $110.00.

Shares fell more than 2% today after the company’s reported Q4 EPS and revenues missed consensus estimates.

BofA Securities downgraded Woori Financial Group (NYSE:WF) to Neutral from Buy.

 

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