Paramount slashed 2 notches to sell; Ameresco in free fall: 5 big analyst cuts
Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Paramount, UDR, Ameresco, Mirati Therapeutics, and Eversource Energy.
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BofA double downgrades Paramount to Underperform
BofA on Monday downgraded media conglomerate Paramount Global (NASDAQ:PARA) by two notches - to Underperform from Buy - with a price target of $9.00 (from $32.00).
The analysts said of the severe downgrade that their "prior bullish thesis and valuation methodology was predicated on PARA’s inherent asset value in a potential sale" and that, "despite receiving credible bids for several different assets (e.g. Showtime and BET), it does not appear any significant asset sales are on the horizon."
Shares dropped 7.8% to $12.69 in Monday trade, and were recently down another nickel to $12.64 Tuesday's premarket.
Ameresco cut to Perform following Q3 miss
Oppenheimer downgraded renewable energy outfit Ameresco (NYSE:AMRC) to Perform from Outperform following the company’s surprise Q3 miss and disappointing guidance, which led to a nearly 20% stock price drop premarket today.
The analysts attributed the weak earnings, which missed on both top and bottom lines, to project delays and downtime of energy assets. “Given that AMRC's business mix skews relatively longer-cycle (Projects) and recurring (Energy Assets), the magnitude of cuts speaks to broad-based lengthening of construction and project sales cycles,” wrote the analysts.
Despite this, Oppenheimer recognizes Ameresco's capacity for a sustained double-digit compound annual growth rate in its EBITDA, noting record backlog and expansion in its Energy Asset pipeline, but added, "amid elevated execution risk and with investors increasingly focused on FCF generation, we are moving to the sidelines."
UDR slashed at Wells Fargo
Wells Fargo downgraded UDR (NYSE:UDR) to Equal Weight from Overweight and cut its price target to $34.00 from $42.50, as reported in real time on InvestingPro.
Last week the luxury-focused real estate investment trust (REIT) saw downgrades from two Wall Street firms after it posted worse-than-expected Q3 results. BofA Securities cut its rating from Buy to Neutral with a price target of $33.00 (from $42.00), while Piper Sandler downgraded from Neutral to Underweight with a price target of $30.00 (from $46.00).
Shares were losing 1% to $32.19 premarket.
Two more downgrades
Mirati Therapeutics (NASDAQ:MRTX) was downgraded by two Wall Street firms after the oncology-focused biotech reported its Q3 results along with recent pipeline and corporate updates. Stifel downgraded the company to Hold from Buy and cut its price target to $59.00 from $83.00. Meanwhile, Leerink Partners cut its rating from Outperform to Market Perform with a price target of $58.00 (from $78.00).
Evercore ISI downgraded Eversource Energy (NYSE:ES) to In Line from Outperform and cut its price target to $65.00 from $84.00. As a result, shares fell nearly 2% pre-market today.
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