Texas Instruments margins in for a squeeze; Silk Road walloped: 5 big analyst cuts
Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Texas Instruments, Silk Road Medical, HubSpot, 89bio, and Arista Networks.
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Texas Instruments (NASDAQ:TXN) was cut to Perform from Outperform at Oppenheimer on Wednesday ahead of the company's Q3 earnings next week, as reported in real-time on InvestingPro.
The analysts, who also removed the chipmaker's prior $195 price target, foresee near-to-medium-term «sustained margin pressure as [management] invests in capacity» despite a «proven and respected» management team with a 10-year strategic vision and favorable macro factors.
Oppenheimer also believes gross margins will be «pressured for next few [years]» thanks to «under-utilization, increased depreciation,» and aggressive pricing in power management integrated circuits (PMIC) in China — the latter of which the analysts note constitute about 20% of Texas Instruments sales.
The analysts added, «In our view, TI's battle of attrition w/smaller suppliers in China could persist for the foreseeable.»
They also expect in-line figures for Texas Instruments' Q3 print and Q4 guidance.
Share were down 0.7% to $156.62 in recent trading.
Silk Road Medical (NASDAQ:SILK) was in free fall on Wednesday, sliding more than 50% in recent trading, after the company was hit with three downgrades amid a whirlwind of sour news: Q3 preliminary revenue miss, reduced full-year guidance, and word of CEO Erica Rogers (NYSE:ROG)' retirement.
Citi in particular downgraded the stroke prevention outfit by two notches, to Sell from Buy, and lopped off almost 80% of its price target — to $8.00 from
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