5 big analyst cuts: AMD booted off buy list after Q2 outlook | Pro Recap

By Davit Kirakosyan

Investing.com -- Here is your Pro Recap of the biggest analyst cuts you may have missed on InvestingPro since yesterday: downgrades at AMD, Comerica, Quest Diagnostics, Corox, and E2open.

AMD cut to Hold from Buy at BofA

Advanced Micro Devices (NASDAQ:AMD) was skidding lower in the premarket Wednesday after sluggish Q2 guidance, which prompted Bank of America to downgrade it to Hold from Buy and to trim its price target to $95 from the prior $98.

BofA sees a "range of headwinds" for the company, including "aggressive pricing/promotion pressure from main rival {Intel," as well as concerns on second-half data center growth, lackluster positioning in AI accelerators, and limited room for further expansion in its price-to-earnings multiple until revenue "re-accelerates back to historical levels."

AMD shares were recently down more than 7% premarket.

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Comerica downgraded to Peerperform, stock crashes as regional bank fears persist

Wolfe Research downgraded Comerica (NYSE:CMA) to Peerperform from Outperform.

Comerica's stock took a major hit yesterday, plummeting over 12%. Currently, shares are trading 4% lower in pre-market. This drop is part of a larger struggle for bank stocks to gain momentum in the wake of JPMorgan's (NYSE:JPM) acquisition of the majority of First Republic's (NYSE:FRC) assets, which did not provide sufficient assurance to investors that the banking crisis has been resolved.

Quest Diagnostics downgraded to Neutral

BofA Securities downgraded Quest Diagnostics (NYSE:DGX) to Neutral from Buy and cut its price target to $148.00 from $166.00, as reported in real time by InvestingPro. The analyst noted that margin expansion looks more difficult after the Haystack Oncology deal.

Last week, the companies announced that Quest Diagnostics will acquire Haystack Oncology in an all-cash equity transaction. While the purchase price ($300 million cash + $150M in milestones) doesn’t seem high vs. other transactions and the current comps in the liquid biopsy space, BofA’s main concern is that it will be dilutive to earnings.

Last week, the company reported its Q1 earnings, with both EPS and revenues coming in better than the consensus estimates.

2 more downgrades

CFRA downgraded Clorox (NYSE:CLX) to Sell from Hold while raising its price target to $145.00 from $143.00.

The company reported better-than-expected Q3 results yesterday and raised its full 2023-year sales and profit guidance as increased prices of its products are expected to overcome the decrease in demand.

E2open Parent (NYSE:ETWO) was downgraded at BofA Securities and Craig-Hallum, following the Q4 earnings announcement.

BofA Securities downgraded the company to Underperform from Buy and cut its price target to $5.00 from $8.00. Meanwhile, Craig-Hallum downgraded to Hold from Buy.

Shares plunged nearly 30% yesterday after the company’s reported Q4/23 earnings missed the Street estimates.

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