4 big analyst cuts: Farfetch downgraded on disappointing Q2, Cigna slashed to Hold
Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: Downgrades at Farfetch, Cigna, Keysight Technologies, and XPO.
InvestingPro subscribers got this news first. Never miss another market-moving headline.
KeyBanc downgraded Farfetch (NYSE:FTCH) to Sector Weight from Overweight following disappointing Q2 earnings, which resulted in more than a 37% stock price drop pre-market today.
Q2 revenue came in at $579.35 million (down 1.3% year-over-year), missing the consensus estimate of $648.27M. Meanwhile, EPS was ($0.21), compared to the consensus of ($0.28). For the full 2023 year, the company expects revenue of $2.5 billion, worse than the consensus estimate of $2.8B.
According to KeyBanc, the rating change is based on decreased confidence in execution and the timeline to profitability. Factors such as macroeconomic challenges and a decline in Brand Platform GMV by 42% year-over-year had a negative impact on the quarter's results. Additionally, softened expectations for Reebok's performance, as well as year-over-year declines in the U.S. and China, increase the risk of achieving profitability in fiscal 2023.
Though we view cost rationalization initiatives positively, we think reduced guidance implies a fairly tough 2H hurdle given softer trends. We continue to like FTCH's LT potential but are downgrading it to Sector Weight based on decreased confidence in execution/heightened risk to FY23 profitability and MT targets.
Edward Jones downgraded Cigna (NYSE:CI) to Hold from Buy, as reported in real-time on InvestingPro.
Earlier this month, the company reported its Q2 results, with EPS and revenues coming in better than the consensus estimates. However, full-year revenue guidance came in below
Read more on investing.com
