4 big analyst cuts: Shopify now 'less compelling'; Activision gets 3 downgrades
Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: Downgrades at Shopify, Activision Blizzard, State Street, and Celanese.
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Shopify (NYSE:SHOP) slipped Tuesday after Evercore ISI downgraded the company to In Line from Outperform with a price target of $69.00.
According to Evercore ISI, «the risk-reward outlook on the stock is less compelling» after a nearly 100% YTD surge in stock price. The analyst said the surge was «well warranted, as it was supported by improved fundamentals, significant cost-saving measures, and a strategic shift away from fully integrated shipping/logistics, but Evercore now sees „few clear catalysts going forward.“
Shares were recently down 1.6% to $67.57.
Activision Blizzard (NASDAQ:ATVI) received three downgrades Tuesday, all reported in real time on InvestingPro.
After the company's jump of more than 3% on Monday, driven by growing expectations that the video game maker's $69 billion merger with tech giant Microsoft (NASDAQ:MSFT) is nearing completion, following a series of significant announcements over the weekend, Wells Fargo downgraded the company to Equal Weight from Overweight with a price target of $95.00.
Joining Wells was Atlantic Equities, which downgraded to Neutral from Overweight with a price target of $95.00, and Baird, which cut the stock to Neutral from Outperform with a price target of $90.00.
Shares were off fractionally in recent trading.
State Street (NYSE:STT) shares fell over 2% yesterday following three downgrades. These declines compounded the losses from Friday when the stock experienced a 12% decline due to disappointing Q2 earnings.
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