Stanley Black & Decker slashed at JPMorgan on slowing earnings: 4 big analyst cuts

investing.com:

Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Stanley Black & Decker, Green Dot, Deckers Outdoor, and EOG Resources.

InvestingPro subscribers got this news first. Never miss another market-moving headline.

JPMorgan downgraded Stanley Black & Decker (NYSE:SWK) to Underweight from Neutral with a price target of $89.00. As a result, shares fell nearly 1% pre-market today.

JPMorgan’s decision reflects a cautious stance on the company's earnings growth over the next two years, which it expects to be lower than both Street and buy-side expectations. This conservative outlook, particularly regarding EPS for 2024 and 2025, is estimated at $4.28 and $5.81 respectively. These figures are about 5% and 10% lower than the consensus estimates of $4.53 and $6.43. The lower expectations are mainly attributed to more conservative margin predictions.

Green Dot (NYSE:GDOT) shares fell more than 2% pre-market today after Barclays downgraded the company to Underweight from Equalweight and cut its price target to $7.00 from $13.00, as reported in real-time on InvestingPro.

The downgrade is attributed to the need for more clarity on the company's strategic direction and the evolution of its business model. According to the analysts, it has become apparent over recent quarters that the investment and time required for Green Dot to transition from its legacy model to a more crystallized digital strategy are greater than initially thought. This significant investment in transformation may lead to the company's underperformance compared to its industry peers.

Stifel downgraded Deckers Outdoor (NYSE:DECK) to Hold from Buy with a price target of $709.00 (from $600.00).

Wells