4 big analyst cuts: CommScope lacking near-term positive catalysts, says Deutsche
Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at CommScope, The Trade Desk, Lumentum, and Global-E Online.
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CommScope downgraded at Deutsche Bank
Deutsche Bank downgraded CommScope (NASDAQ:COMM) to Hold from Buy and cut its price target to $6.00 from $8.00. Shares fell more than 1% yesterday.
The rating change was driven by 3 key factors. Firstly, there is ongoing pressure on customer orders, as indicated by recent data points (ERIC/NOK pre-announcements, GLW intra-quarter commentary, and lead-sheathed copper overhangs for Telcos).
Second, there is a greater risk of downside to consensus estimates, particularly with regard to CommScope's 2024 core adjusted EBITDA targets.
Lastly, the bank mentioned the company's slower deleveraging process, with current leverage at 7x and "higher for longer" interest rates presenting incremental risks to FCF over the next several years.
The Trade Desk drops as two firms turn more cautious on the stock
The Trade Desk (NASDAQ:TTD) shares fell more than 2% yesterday after two Wall Street firms provided cautious comments on the company, as reported in real time on InvestingPro.
New Street Research downgraded the stock to Sell from Neutral with a price target of $69.00 (from $57.00) amid an increased level of competition for economics with agencies and sell-side platforms (SSPs).
Meanwhile, Redburn initiated coverage on the company with a Sell rating and a price target of $34.00.
We think consensus expectations and market valuations are too high. We worry that evidence of the former will lead to compression in the latter and launch with a Sell rating.
2 more analyst cuts
BofA Securities downgraded Lumentum (NASDAQ:LITE) to Underperform from Neutral with a price target of $50.00.
Morgan Stanley downgraded Global-E Online (NASDAQ:GLBE) to Equalweight from Overweight with a price target of $45.00 (from $38.00).
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