5 big analyst picks & cuts: CrowdStrike downgraded at Morgan Stanley ahead of Q2
Here is your Pro Recap of the biggest analyst picks and cuts you may have missed today: upgrades at Forward Air, Zimmer Biomet, and UGI, and downgrades at CrowdStrike and L3Harris Technologies.
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Crowdstrike (NASDAQ:CRWD) shares fell more than 2% premarket today after Morgan Stanley downgraded the company to Equalweight from Overweight and cut its price target to $167.00 from $178.00 ahead of Q2/24 earnings announcement on Wednesday.
Difficult Numbers Set Up Into Q2 and 2H: Net New ARR (NNARR) is key metric. We expect FQ2 NNARR to come barely inline with consensus $192MM (-12% YoY) and management's implied guidance of $193-$194MM (-11% YoY), as our checks through June were largely stable.
The consensus and management's guidance of low-30% growth in total ARR for fiscal 2024 assumes that there will be a resurgence in NNARR during the second half of the year. Morgan Stanley believes that the consensus forecast for NNARR is overly optimistic at 6% year-over-year growth in Q3 and sees a downside to a 12% growth estimate in Q4.
Wolfe Research upgraded Forward Air (NASDAQ:FWRD) to Peerperform from Underperform, as reported in real-time on InvestingPro.
Since the announcement of the Omni Logistics acquisition on August 10, Forward Air shares have dropped by around 35%. “So after the big reset to the stock and with signs of a bottom with the 13% bounce of the bottom, we're moving back to the sidelines,” mentioned Wolfe Research.
Zimmer Biomet (NYSE:ZBH) shares rose more than 1% premarket today after BTIG upgraded the company to Buy from Neutral with a price target of $139.00.
While our upgrade is partly rooted in valuation, we think the
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