5 big analyst cuts: AmEx slashed; Affirm has rocky road ahead, says Piper Sandler
Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Affirm, American Express, Conagra, Eagle Materials, and HubSpot.
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Affirm shares dropped on Piper Sander downgrade
Affirm (NASDAQ:AFRM) shares were recently down about 6% premarket after Piper Sandler downgraded the company to Underweight from Neutral with a price target of $11.00.
Piper noted that Affirm relies heavily on loan sales for revenue, but that higher rates and wider credit spreads have led them to hold more loans on their balance sheet, which also pressures operating margins.
The analyst added:
In addition, we expect tighter underwriting standards, increased pricing, and the re-introduction of student debt payments to cause an incremental slowdown in revenue growth over the next year.
As a result, Piper Sandler believes it will be challenging for the company to achieve the Street estimate of 24% revenue growth for 2024, noting that revenue growth has decelerated to 11% and 7% in the past two quarters.
American Express cut to Neutral
American Express (NYSE:AXP) shares fell more than 1% premarket today after Baird downgraded the company to Neutral from Outperform with a price target of $185.00.
The company is set to report its Q2/23 earrings on July 21. Street estimates stand at $2.84 for EPS and $15.4 billion for revenues.
3 more downgrades
Jefferies downgraded Conagra Foods (NYSE:CAG) to Hold from Buy and cut its price target to $38.00 from $46.00.
JPMorgan downgraded Eagle Materials (NYSE:EXP) to Underweight from Neutral with a price target of $190.00 (from $155.00).
Piper Sandler downgraded HubSpot (NYSE:HUBS) to Neutral from Overweight with a price target of $520.00 (from $482.00).
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