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6 big downgrades: D.R. Horton cut at JPMorgan | Pro Recap

Published 07-03-2023, 05:10 pm
© Reuters.

By Davit Kirakosyan

Investing.com -- Here is your daily Pro Recap of the analysts’ biggest downgrades you may have missed on InvestingPro. Start your free 7-day trial to get this news first.

D.R. Horton downgraded at JPMorgan as fundamentals may go sideways

JPMorgan downgraded DR Horton (NYSE:DHI) to Neutral from Overweight and cut its price target to $102.50 from $107.00.

The firm remains positive on homebuilders for 2023, but at the same time, they "believe fundamentals may go sideways if not soften somewhat over the next quarter or so as the housing market absorbs the past month's roughly 70 bps increase in mortgage rates."

Restoration Hardware downgraded at Jefferies, shares down 5%

Jefferies downgraded RH (NYSE:RH) to Hold from Buy and cut its price target to $298.00 from $364.00 given a luxury housing market that's struggling to stabilize and corporate cuts to headcount/compensation that haven't yet rippled across the luxury home furnishings category.

“With the current multiple reasonably nestled between other luxury peers and more risk vs. reward heading into the '23 guide, we move to the sidelines,” said the firm.

Shares dropped nearly 5% yesterday.

Artisan Partners downgraded at Goldman

Goldman Sachs downgraded Artisan Partners Asset Management (NYSE:APAM) to Sell from Neutral with a price target of $27.00.

According to the firm, fund flows so far in Q1 have been lackluster despite seasonal tailwinds - flattish across equity and fixed income (MFs + ETFs), the second worst Q1-to-date pace since Q1/16 (-$20 billion) and well below the historical average of approximately $80B over the last decade.

Shares fell more than 2% pre-market today.

3 more downgrades

R5 Capital downgraded Sprouts Farmers Market (NASDAQ:SFM) to Hold from Buy and cut its price target to $32.95 from $35.44. Shares fell more than 2% yesterday and were trading 2% lower pre-market today.

The company reported strong Q4 earnings results last week, which resulted in shares jumping nearly 13% on Thursday.

Raymond (NS:RYMD) James downgraded Gossamer Bio (NASDAQ:GOSS) to Market Perform from Outperform following the publication of Merck (NS:PROR)'s sotatercept’s Phase 3 data in NEJM.

“While we already thought seralutinib would exhibit weaker efficacy than sotatercept in comparable populations, the story got even worse in our view with sotatercept’s Phase 3 STELLAR outperforming Phase 2 PULSAR,” said the firm.

Shares dropped nearly 5% yesterday.

Jefferies downgraded Radius Global Infrastructure (NASDAQ:RADI) to Hold from Buy while raising its price target to $15.00 from $14.00.

Last week, EQT Active Core Infrastructure fund together with Public Sector Pension Investment Board announced they had agreed to acquire Radius Global Infrastructure for $15.00 per share in cash in a transaction valued at a total enterprise value of approximately $3B.

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