6 downgrades for Fortinet, Fox slashed at JPMorgan: 4 big analyst cuts
Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at FOX, Fortinet , Southern, and JPMorgan.
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JPMorgan downgraded Fox Corp (NASDAQ:FOXA) to Neutral from Overweight and cut its price target to $36.00 from $40.00 following the company’s reported Q1 results yesterday, as reported in real-time on InvestingPro.
Although the revenue reached $3.21 billion, surpassing the anticipated consensus of $3.18B, the quarter’s profits declined by nearly 33%. This drop in earnings can be attributed to a decrease in political advertising and increased costs associated with broadcasting the women's soccer World Cup, along with investments made in enhancing its digital platform.
«We like Fox’s concentrated news, sports, and broadcast strategy, which has buoyed shares vis-à-vis media peers during the industry-wide selloff of the last two years, but long-term strategic questions remain. We particularly question the lack of a wider digital strategy, as linear ecosystem subscriber losses remain elevated in the coming years and the pace of affiliate increases will fade, leaving Fox subject to a tough linear affiliate trend more similar to peers,» commented JPMorgan.
Today, Fortinet (NASDAQ:FTNT) faced a series of downgrades following its third-quarter earnings report and lowered guidance, which was driven by weak corporate spending amidst economic uncertainties. This news triggered a sharp decline in the company’s shares, which fell over 23% in pre-market today.
JPMorgan shifted Fortinet's rating from Overweight to Neutral, slashing the price target from $67.00 to $52.00. The analysts expressed
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