4 big analyst cuts: VMware slashed to Neutral ahead of Q2 earnings
Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at VMware, Celanese, Upwork, and Farfetch.
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Monness, Crespi, Hardt downgraded VMware (NYSE:VMW) to Neutral from Buy ahead of the company’s Q2/24 earnings on Thursday.
The firm highlighted VMware's stock performance during the 2022 tech decline and its continued growth this year, attributed to factors such as a unique value proposition in the cloud, an attractive margin profile, and support from the upcoming Broadcom (NASDAQ:AVGO) deal. “Given that the acquisition by Broadcom appears to be in the home stretch, we are downgrading VMware to Neutral from Buy," mentioned the firm.
Celanese (NYSE:CE) shares fell nearly 2% premarket today after Piper Sandler downgraded the company to Underweight from Neutral and cut its price target to $112.00 from $120.00, as reported in real time on InvestingPro.
Earlier this month, the company reported its Q2 results, with EPS and revenues coming in worse than the consensus estimates. Furthermore, Q3/23 and full-year EPS guidance missed the expectations.
Upwork (NASDAQ:UPWK) shares dropped more than 4% yesterday after BTIG downgraded the company to Neutral from Buy, noting it believes the valuation is now more balanced following around 40% year-to-date gain in the stock price.
While there are arguments for why we think UPWK should enjoy a premium valuation such as its number one position in the space and longer runway for take-rate expansion, we believe UPWK's valuation adequately reflects those positives and risk-reward is now balanced.
Morgan Stanley downgraded Farfetch (NYSE:FTCH) to Equalweight from
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