Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Coinbase Global, Redfin, Alcoa, and JPMorgan.
InvestingPro subscribers got this news in rapid fire. Never be left in the dust again.
Coinbase slashed to Neutral
Atlantic Equities downgraded Coinbase Global (NASDAQ:COIN) to Neutral from Overweight with a price target of $80.00 (from $70.00) following the recent rally in the stock, which has seen a 60% increase from its recent lows. Shares surged more than 9% yesterday, driven by the enthusiasm surrounding the company’s involvement in the potential launch of a Bitcoin ETF.
According to Atlantic Equities, the current risk/reward for the company appears less attractive now due to ongoing regulatory challenges and surprisingly weak trading volumes.
Redfin downgraded to Underperform following a massive stock rally
DA Davidson downgraded Redfin (NASDAQ:RDFN) to Underperform from Neutral with a price target of $10.00, as reported in real time on InvestingPro.
RDFN has experienced remarkable growth in 2023, with shares up 266% YTD, and already up 28% in just this week.
According to DA Davidson, the company has been making significant progress in recent quarters, focusing on cost reductions in its core brokerage operations and shifting towards higher-margin revenue streams. While this progress towards sustainable profitability is noteworthy, the firm believes that the current valuation of Redfin already fully incorporates these.
Shares fell more than 4% premarket today following the downgrade.
JPMorgan loses Buy rating at Citi
Citi downgraded JPMorgan (NYSE:JPM) to Neutral from Buy with a price target of $160.00. The analysts cited what they assess as a "premium valuation" of about 2x tangible book value and 10.5x earnings per share for next year, which was prompted by the shift "towards higher-quality names following the regional bank turmoil in March/April."
Citi emphasized that "JPM is viewed as a high-quality franchise with a strong management team and balance sheet and in turn is rewarded with a premium valuation."
Shares, which closed up 1.5% to $147.42 on Tuesday, were off fractionally in Wednesday's premarket.
Alcoa cut to Underperform
Wolfe Research downgraded Alcoa (NYSE:AA) to Underperform from Peerperform with a price target of $25.00.
The analyst expects "challenging aluminum markets ahead," writing, "Our more cautious 12-month view on aluminum prices reflects soft demand across end markets, rising output from Yunnan, China as drought conditions abate, and continued packaging destocking."
Wolfe added, "In addition, AA's $55M/qtr added mining cost/inefficiencies in Australia could drag on beyond the current Q124E expectation."
Alcoa closed at $34.69 Tuesday and was nearly at breakeven in premarket trading Wednesday.
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