4 big analyst cuts: Home Depot unlikely to outperform short term, says Telsey
Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Home Depot, Alteryx, International Flavors & Fragrances, and Willis Towers Watson.
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Home Depot (NYSE:HD) shares were recently down more than 1% premarket today after Telsey downgraded the company to Market Perform from Outperform with a price target of $315.00 ahead of Q2/24 earnings report on August 15.
The analysts say they «expect Home Depot to experience a slightly steeper slowdown related to the weak housing market trends.»
They also anticipate «consumers remaining cautious with spending, especially on big ticket items and projects, and continued normalization from the strong COVID-19 and government stimulus related gains from past three years,» adding:
While the stock likely reflects much of the negative news and challenging operating environment, including a bottoming housing market, we don't expect it to outperform the market in the near term, given the run it has had since May 2023 (up ~17% since May 16) and the current valuation.
Shares were lately changing hands at $329.17 in the premarket.
Piper Sandler downgraded Alteryx (NYSE:AYX) to Neutral from Overweight and cut its price target to $30.00 from $68.00 following the company’s reported Q2 earnings, which resulted in a share price drop of more than 25% premarket today.
We are lowering our estimates and rating on AYX to Neutral as the Q2 ARR shortfall ($14M miss driven by a shift in customer behavior that has made standalone expansions challenging) has clouded visibility into the growth trajectory going forward.
Stifel downgraded International Flavors & Fragrances
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