Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Today's most important downgrades

Published 11/17/2022, 05:18 PM
Updated 11/17/2022, 05:19 PM
© Reuters.  Today's most important downgrades
D
-
DGX
-
PFG
-
CCL
-
RCL
-
NCLH
-

By Davit Kirakosyan

Norwegian Cruise Line (NYSE:NCLH) shares plunged more than 6% today after Credit Suisse downgraded the company to Underperform from Outperform and lowered its price target to $14 from $20. The key drivers behind the downgrade are (1) risk to the 23 EBITDA guidance, (2) valuation premium vs peers is likely unsustainable, and (3) the company hitting their guide implies more equity upside potential for Royal Caribbean Cruises Ltd. (NYSE:RCL) or Carnival (NYSE:CCL).

Citi downgraded Quest Diagnostics (NYSE:DGX) to Sell from Neutral and lowered its price target to $125.00 from $145.00 following recent multiple expansion given that it sees risk to the long-term guide of 4-5% growth in the base business along with additional cost headwinds.

Morgan Stanley downgraded Principal Financial Group (NASDAQ:PFG) to Underweight from Equalweight and raised its price target to $79.00 from $76.00 reflecting its concerns that the valuation, both in absolute terms and relative to its peers, looks stretched, and that capital flexibility now looks to be limited. Shares fell more than 3% today.

Evercore ISI downgraded Dominion Resources, Inc. (NYSE:D) to In Line from Outperform with a price target of $78.00 following the business review announced with the Q3 release on Nov 4th.

Want to get this news first? Upgrade to InvestingPro for real-time market coverage.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.