Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Airbnb, Quidel, Biogen, and Palantir Technologies.
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Airbnb cut to Neutral following the Q4 beat
DA Davidson downgraded Airbnb (NASDAQ:ABNB) to Neutral from Buy with a price target of $145.00.
The company reported Tuesday better-than-expected Q4 results as strong demand for travel continued to drive bookings.
However, DA Davidson noted that management's forecast for the Q1 and the full year 2024 suggests a shift towards more normalized growth in room nights. There's also an expectation of slight year-over-year EBITDA margin compression due to investments in long-term growth initiatives, including efforts to deepen market penetration internationally, enhance marketing strategies, and expand AI and platform capabilities.
Shares are currently down around 4% in pre-market.
Quidel hit with 4 downgrades after a Q4 miss
After Quidel (NASDAQ:QDEL) reported disappointing Q4 results, leading to a nearly 40% drop in its share price pre-market today, multiple Wall Street firms downgraded the stock.
William Blair adjusted its rating for Quidel to Market Perform from Outperform. The analysts pointed out that both the Q4 results and the 2024 outlook significantly fell short of adjusted EBITDA and EPS expectations. The primary reason for the shortfall in the guidance was lower than anticipated respiratory revenue, with the company adopting a cautious stance on forecasting these high-margin sales at the start of the year, “something that is likely better for long-term confidence in modeling, but a tough pill to take in the short term”.
JPMorgan shifted its rating to Underweight from Neutral, setting a new price target at $37, down from $66. Raymond James moved its rating to Outperform from Strong Buy, adjusting the price target to $76 from the previous $100. Meanwhile, Craig-Hallum downgraded the company to Hold from Buy.
Biogen downgraded following Q4 miss
Wells Fargo downgraded Biogen (NASDAQ:BIIB) to Equal Weight from Overweight with a price target of $240.00 (from $315.00), following the company’s reported Q4 earnings miss, which resulted in a share price drop of more than 7% yesterday.
Our prior bull thesis was based on Skyclarys growth being the key story of 2024-25. However, the company missed 4Q sales at $56M vs. $64M consensus. More importantly the comments from the call suggested that the company is now in the "finding the patients" mode as the bolus has been treated. Penetration is already >20%, and we see less room for upside surprise in the near term. EU approval is positive, but sales inflection could take time."
Palantir Technologies cut to Hold at HSBC
HSBC downgraded Palantir Technologies (NYSE:PLTR) to Hold from Buy with a price target of $22.00 on full valuation.
The bank acknowledged Palantir's guidance for 2024, highlighting its emphasis on operating efficiency and revenue growth, which propelled the firm's impressive financial results for 2023. HSBC views Palantir as well-positioned to capitalize on robust demand for its artificial intelligence products, particularly in its rapidly expanding Commercial segment. Additionally, the Government segment is expected to see growth re-acceleration, driven by the execution of government contracts in 2024 and increased defense spending.
The bank projects Palantir's revenue will grow at a CAGR of 20.2% from 2023 to 2028, with its anti-terror and defense offerings benefiting from the conflicts and chaos currently plaguing the world.
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