Southwest Airlines slashed at TD Cowen following Q3 miss: 4 big analyst cuts

Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Southwest Airlines, PTC Therapeutics, Hasbro, and Datadog.

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Southwest Airlines slashed following Q3 miss

Southwest Airlines (NYSE:LUV) shares fell more than 2% pre-market today after TD Cowen downgraded the company to Market Perform from Outperform and cut its price target to $20.00 from $26.00 following the company’s reported Q3 miss.

EPS for the quarter came in at $0.38, compared to the consensus estimate of $0.39. Revenue was $6.5 billion, versus the consensus of $6.56B.

TD Cowen commented:

"Management is focused on improving results and to that end will reduce capacity growth. They have a relatively easy 4Q23 y/y comp, but investor pushback includes balance sheet destruction, overcapacity, high costs & lower yields."

PTC Therapeutics cut to Sell on Q3 and pipeline update

Citi downgraded PTC Therapeutics (NASDAQ:PTCT) to Sell from Neutral and cut its price target to $17.00 from $29.00, as reported in real-time on InvestingPro.

The rating change follows PTC (NASDAQ:PTC)'s Q3/23 earnings and pipeline update, which resulted in a share price drop of more than 21% pre-market today.

“Although the new royalty agreement with Royalty Pharma improves PTC’s near-term financial position, the upfront cash comes at the expense of future Evrysdi royalties, which we previously viewed as one of the company’s key growth drivers,” mentioned Citi.

Furthermore, the bank emphasized that PTC also reported additional regulatory challenges, such as extra trial requests and delays affecting several of their programs. Coupled with potential issues around Translarna in the EU, and increasing uncertainties in almost all key pipeline programs, Citi adjusted its rating and price target accordingly.

Two more downgrades

Hasbro (NASDAQ:HAS) shares fell more than 1% pre-market today after BofA Securities downgraded the company to Neutral from Buy and cut its price target to $53.00 from $90.00.

The company reported worse-than-expected Q3 results and provided a soft outlook, leading to more than an 11% stock price drop yesterday.

Wells Fargo downgraded Datadog (NASDAQ:DDOG) to Equal Weight from Overweight and cut its price target to $95.00 from $120.00.

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