5 big analyst cuts: Boeing rating shaved after Q1 beat | Pro Recap

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5 big analyst cuts: Boeing rating shaved after Q1 beat | Pro Recap
Credit: © Reuters

By Davit Kirakosyan

Investing.com -- Here is your daily Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Boeing, Enphase, EA, Deutsche Bank, and Vornado Realty.

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Boeing downgraded to Buy following Q1 earnings announcement

CFRA downgraded Boeing (NYSE: BA ) to Buy from Strong Buy and cut its price target to $228.00 from $240.00. While recent work stoppages related to the 737 MAX appear to be tied to two specific fittings, which the company is addressing, CFRA noted that looming summer delays put a premium on solid execution in the second half of the year.

Furthermore, the firm is slightly less optimistic on the timing of the China re-opening trade, as well as Boeing still expects no material supply chain improvement until well into 2024.

The company reported its Q1 results yesterday, highlighted by better-than-expected operating cash flow, and announced plans to increase the output of its 737 jets.

Enphase Energy downgraded to Underperform, shares plunge on guidance miss

BofA Securities downgraded Enphase Energy (NASDAQ: ENPH ) to Underperform from Neutral with a price target of $169.00.

Shares dropped more than 25% yesterday following the company’s reported Q1 earnings results. While Q1 EPS of $1.37 and revenue of $726 million came in above the consensus estimates of $1.21 and $719.28M, respectively, Q2/23 guidance missed expectations.

The company expects Q2 revenue in the range of $700M-$750M, missing the consensus estimate of $773M.

3 more downgrades

BMO Capital downgraded Electronic Arts (NASDAQ: EA ) to Market Perform from Outperform and cut its price target to $125.00 from $150.00. Shares are trading more than 1% lower premarket.

BMO cut its valuation multiple to 17x its 2025 EPS estimate from 20x to account for a reduction in implied "takeout premium" owing to the UK Competition and Markets Authority's (CMA) decision to block Microsoft (NASDAQ: MSFT )/Activision Blizzard (NASDAQ: ATVI ) deal.

In addition, the firm believes a reduction is appropriate given lingering concerns about EA's mobile strategy and general pressure on video game spending.

CFRA downgraded Deutsche Bank (NYSE: DB ) to Hold from Buy and lowered its price target to $11.50 from $15.50 after the company announced it will cut 800 jobs. This was followed by bigger than expected rise in Q1 profit due to higher interest rates that offset a slump in investment banking revenues.

Piper Sandler downgraded Vornado Realty Trust (NYSE: VNO ) to Underweight from Neutral and cut its price target to $11.00 from $16.00.

Shares plunged more than 13% premarket today after the company said it will postpone common dividend until year-end, and announced a $200M share buyback program.

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