4 Stocks Downgraded, From Advanced Energy (AEIS) to Boeing (BA)
Ratings for several stocks have been downgraded on Wednesday, with several big names leading the pack. Bank of America/Merrill Lynch, Wells Fargo and Citigroup downgraded several stocks with a few big name surprises.
- Advanced Energy (NASDAQ:AEIS)
Advanced Energy broke the news earlier in the week that the company will not be releasing its earnings reports until May 2 for Q1 2016. The company’s stock was downgraded to neutral as investor sentiment Is down. The company’s $35 price target is less attractive to investors, and stock prices have fallen 3.79% on the news of the downgrade.
Advanced Energy stock prices hit 12-month highs at the end of March on news that the stock had been upgraded.
Advanced Energy’s earnings reports will dictate the rest of 2016 for a company that went from highs just three weeks ago to a major loss on the day. Advanced Energy has performed well over the last 90-day period, up nearly 30%.
Scoot Boeing 787 Dreamliner Airplane
KAOHSIUNG, TAIWAN – OCTOBER 17: A Scoot Boeing 787 Dreamliner taxis on October 17, 2015 in Kaohsiung Taiwan. The Boeing 787 Dreamliner is the world’s first major airliner to use composite materials in the construction of its airframe.
- Boeing (NYSE:BA)
Boeing has been downgraded to underperform. Analysts expect that the company’s 787 will not be as profitable as previously forecasted. The company’s CEO, Dennis Muilenberg, has adamantly defended the company’s 787, which has resulted in the loss of tens of billions of dollars during the first few hundred 787s built.
Muilenberg states that bigger 787 builds, particularly the 787-10, will have a higher price tag and bring the 787 line’s profits up higher as a result.
Boeing’s stock is down 2.21% on the news of the downgrade and is trading at $129.75 with a price target of $125.
- DeVry Education (NYSE:DV)
DeVry stock has been downgraded to underperform. The company is struggling with lower investor confidence following a lawsuit from the FTC. DeVry is being investigated for misrepresentation of the facts.
The company is also facing increased competition and a lack of new enrollment, resulting in investors abandoning the stock. Year-on-year enrollment for DeVry Education was down 1.7% in the fall, according to a company report.
DeVry stock has tumbled over 4% on the day.
Hershey Park, PA
Children horsing around the height markers at Hersheypark. The different candy bars indicate different heights, which determine which rides children may go on.
- Hershey (NYSE:HSY)
Hershey has been downgraded to underperform with a price target of $92. The stock is down 2.69% on the news and is trading at $92.01. Americans are eating less chocolate, and Hershey has tried adapting to boost consumer growth. The company announced that it will introduce meat snacks into the company’s lineup in an effort to return to healthy growth levels.
Hershey purchased Krave for $300+ million last year. Krave is a strategic buy for the company and is a producer of jerky.
Hershey is likely to rebound as the company performs well in multiple sectors despite struggling from poor growth.
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- 4 Stocks Downgraded, From Advanced Energy (AEIS) to Boeing (BA) - April 23, 2016