Investing.com -- Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at RTX, Barclays, Bath & Body Works, and BOK Financial.
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BofA cuts F5 Networks to Underperform on 'software and systems risk'
BofA Securities on Thursday downgraded F5 Networks (NASDAQ:FFIV) to Underperform from Neutral, trimming the price target by $5.00 to $160.00.
The analysts said they "expect revenue growth to remain muted, at -2% and +4% over the next two years," and added that they believe the stock may continue to outperform their coverage universe after lagging the Nasdaq in four of the last five years, with particularly sharp underperformance year to date (up 6% for 2023 so far vs. 23% for the Nadsaq).
They highlighted "two main risks that may keep a lid on the stock" - challenges to both software and systems - which they believe pose risks to the company's top-line guidance for fiscal years 2024 and 2025.
Shares opened with a drop, but were eking out a fractional gain to $152.60 around midday.
Barclays cut to Underperform
Barclays (NYSE:BCS) shares were slipping Thursday after BofA Securities lowered the company to Underperform from Neutral and cut its price target to $7.31 from $8.77.
Earlier this week, Barclays reported its Q3 results and signaled another restructuring round in the coming months to mitigate the effects of margin pressure from competition in the savings market, as well as another lackluster performance from its investment bank.
BofA analysts remarked, "A potential material but unspecified restructuring charge to deliver unspecified benefits over an unspecified time period adds to uncertainty about Barclays strategy and financial targets.”
Though such changes might improve longer-term profitability, the analysts noted, they believe it doesn't seem to address the fundamental issue of around 70% of capital being tied up in the lower-returning Corporate & Investment Bank, perceived by the market as volatile.
Shares were down 1.8% to $6.40 in recent trading.
Bath & Body Works cut at Jefferies
Jefferies downgraded Bath & Body Works (NYSE:BBWI) to Hold from Buy on Thursday and cut its price target to $30.00 from $45.00, citing limited growth opportunities.
“Our data across social, foot traffic, & share suggest a slowing of trends for BBWI," wrote the analysts. "We like the retailer, but product mix is not recession-resistant, price points are high, current trends in bodycare vary from BBWI's core offering, and we believe the co's sales levels still need to come off COVID highs."
After a fall at the open, shares were recently up 0.9% to $28.37.
RTX slashed to Sell after Q3 beat
RTX (NYSE:RTX) shares fell more than 1% pre-market today after DZ Bank downgraded the company to Sell from Hold and cut its price target to $68.00 from $79.00, as reported in real-time on InvestingPro.
On Tuesday, the aerospace-and-defense behemoth said its Q3 EPS and revenues came in better than the consensus estimates, and also announced a fresh $10 billion accelerated share repurchase program, after which shares jumped more than 7%.
The company also said it expects full-year EPS in the range of $4.98-$5.02, better than the consensus of $4.72 - but 2023 revenue is seen at $68.5B, below the consensus of $69.4B.
Shares were recently up 1.5% to $79.57.
Another pair of downgrades: BOK Financial and Deere
Wells Fargo downgraded BOK Financial (NASDAQ:BOKF) to Equal Weight from Overweight with a price target of $70.00 (from $90.00). Shares were recently down 1.3% to $63.08, extending on their more-than-10% loss on Wednesday after a disappointing Q3 earnings report.
OTR Global slashed Deere (NYSE:DE) to Negative from Mixed. Shares were recently nearly breakeven at $371.41.
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