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Today's most important downgrades

Published 12/15/2022, 04:38 PM
Updated 12/15/2022, 04:43 PM
© Reuters.  Today's most important downgrades
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By Davit Kirakosyan

Western Digital Corp. (NASDAQ:WDC) shares plunged more than 10% today after Goldman Sachs downgraded the company to Sell from Neutral and lowered its price target to $31.00 from $43.00 as it expects the ongoing downturn in NAND to get worse. The analysts believe net leverage on the company's balance sheet is likely to come under greater scrutiny by investors, and may constrain operating activities in the near term, presenting a risk to the company's post-cycle competitive position.

Morgan Stanley downgraded AT&T Inc (NYSE:T)to Equalweight from Overweight with a price target of $20.00. While solid execution continues, the analysts expect slowing growth in 2023 on more difficult wireless KPI comps, while secular pressures in wireline continue. Shares fell more than 2% today.

Snap Inc (NYSE:SNAP) shares fell more than 7% today after Jefferies downgraded the company to Hold from Buy and lowered its price target to $10 from $12. The analysts believe the company will continue to face several headwinds, including the iOS14.5 privacy changes, a worsening macro picture, and intense competition.

Cowen downgraded JetBlue Airways (NASDAQ:JBLU) to Market Perform from Outperform and lowered its price target to $9.00 from $10.00 following the company’s Q4 update. The analysts believe the shares are unlikely to outperform the group in 2023. Shares were down more than 3% today.

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