F5 stock could stagnate from here, per BofA; Barclays slashed: 6 big analyst cuts
Investing.com | Author Davit Kirakosyan
Published Oct 26, 2023 12:48
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.
Never miss another market-moving headline.
h2 BofA cuts F5 Networks to Underperform on 'software and systems risk'/h2BofA 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/h2
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/h2
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."
Get The App
After a fall at the open, shares were recently up 0.9% to $28.37.
RTX slashed to Sell after Q3 beat/h2
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.
Written By: Investing.com
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.