4 big analyst cuts: Bath & Body Works stock stumbles on downgrade | Pro Recap

By Davit Kirakosyan

Investing.com -- Here is your daily Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Bath & Body Works, Charles Schwab, F5, and MYT Netherlands.

Bath & Body Works downgraded at Piper Sandler, shares fall

Piper Sandler downgraded Bath & Body Works (NYSE:BBWI) to Neutral from Overweight and cut its price target to $37.00 from $48.00, noting that expectations for the company have been elevated since the company issued what seemed to be rather conservative guidance on its Q4 call.

Shares are down more than 3% premarket today.

The firm now sees plenty of reason for results to fall in line with management's outlook, largely on the basis of persisting margin pressures. Despite the company's relatively low valuation, Piper Sandler is concerned that the current estimates are overly optimistic, and it anticipates limited potential for share prices to increase from their current levels.

The company is set to report its Q1/24 on May 17. Street estimates stand at $0.27 for EPS and $1.4 billion for revenues.

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Charles Schwab downgraded at Redburn

Redburn downgraded Charles Schwab (NYSE:SCHW) to Sell from Neutral. Shares are down around 1% premarket today.

On Monday, the company reported its Q1 results, with EPS of $0.93 coming in better than the Street estimate of $0.90. Revenue was $5.12B, compared to the Street estimate of $5.14B.

F5 Networks downgraded following Q2 earnings report

Barclays downgraded F5 Networks (NASDAQ:FFIV) to Equalweight from Overweight and cut its price target to $140.00 from $166.00.

Shares fell more than 7% yesterday and are currently trading 7% lower premarket. Yesterday, the company reported its Q2 results, with both EPS and revenues beating the consensus estimates, however, Q3 guidance came in below expectations.

Furthermore, the company said it will reduce its workforce by 9% and cut bonuses for senior executives to bring down costs.

MYT Netherlands downgraded following preliminary Q3 announcement

JPMorgan downgraded MYT Netherlands (NYSE:MYTE) to Neutral from Overweight and cut its price target to $7.00 from $9.00.

Meanwhile, Societe Generale downgraded the company to Hold from Buy and cut its price target to $7.00 from $13.00.

Shares plunged nearly 15% yesterday after the company announced its preliminary Q3 results and revised its 2023 outlook.