By Davit Kirakosyan
Investing.com -- Here is your daily Pro Recap of the biggest analyst downgrades you may have missed since yesterday’s close.
Norfolk Southern cut to Hold after train derailments
Argus downgraded Norfolk Southern (NYSE:NSC) to Hold from Buy due to "micro issues" arising from two derailments and a collision involving the company's trains, including the fiery East Palestine, Ohio derailment that released toxic fumes into the air and precipitated a mass evacuation of nearby residents.
Norfolk Southern has come under the withering eye of regulators and the U.S. Senate. ... Prior to the series of incidents, we had been anticipating mid-single-digit growth for the year for Norfolk Southern. However, we think the new costs associated with remediation programs will cut into profitability and we are lowering our EPS estimates.
The firm added that the shares have also traded in a "bearish pattern of lower highs and lower lows since December 2021."
Norfolk Southern shares were recently down 1.6% at $204.75.
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Lam Research downgraded at Bernstein
Bernstein downgraded Lam Research (NASDAQ:LRCX) to Market Perform from Outperform with a price target of $500.00, noting that the stock is now more expensive.
The firm tweaked its CY2023 wafer fab equipment (WFE) forecast slightly upwards to $78 billion (still down 20% year-over-year), "mostly on more R&D from Samsung spends and strong backlog drawdown/ICAPS demand from AMAT."
Shares were down 1.8% in recent trading.
3 downgrades for Seagen following Pfizer buyout announcement
Morgan Stanley, BMO Capital, and JMP Securities downgraded Seagen (NASDAQ:SGEN) following the announcement that Pfizer (NYSE:PFE) has entered a definitive merger agreement to acquire Seagen for $43B, or $229 per share.
Morgan Stanley downgraded the stock to Equalweight from Overweight with a price target of $229.00 (from $173.00), while BMO Capital downgraded to Market Perform from Outperform with a price target of $229.00 (from $179.00). JMP Securities downgraded to Market Perform from Market Outperform.
Shares were ticking down fractionally in recent trading.
Another trio of downgrades
Traeger (NYSE:COOK) plunged 17% after Piper Sandler downgraded the stock to Neutral from Overweight and cut its price target to $4.00 from $6.00.
The company will report its Q4 earnings results tomorrow after the market close.
JPMorgan downgraded Ovintiv (NYSE:OVV) to Neutral from Overweight and cut its price target to $53.00 from $59.00. Shares were off more than 11%.
Compass Point downgraded Acushnet (NYSE:GOLF) to Neutral from Buy and cut its price target to $55.00 from $65.00. Shares retreated some 1% intraday.