4 big analyst cuts: Catalent downgraded after warning on outlook cut | Pro Recap

By Davit Kirakosyan

Investing.com -- Here is your Pro Recap of the biggest analyst cuts you may have missed today.

Catalent downgraded, shares plunge on earnings delay & warnings on outlook cut

BofA Securities downgraded Catalent (NYSE:CTLT) to Underperform from Neutral and cut its price target to $28.00 from $49.00.

InvestingPro users always know first. Start your free 7-day trial to get on board.

Shares dropped more than 25% on Monday after the company delayed its Q3 earnings announcement (expects on May 15, previously scheduled on May 9) and said it expects to cut its full-year outlook.

The company said it expects that productivity issues and higher-than-expected costs experienced at three of its facilities would hurt Q3 results and the 2023 outlook.

Green Dot downgraded to Hold following Q1 beat

Needham downgraded Green Dot (NYSE:GDOT) to Hold from Buy following the company’s reported Q1 results on Thursday. Shares plunged nearly 7% on Monday.

While the results came in better than expected, Needham believes this was largely the result of favorable seasonality in the tax processing business and better BaaS trends as some exiting partners are taking longer to de-convert from the company than originally planned.

Management reiterated its 2023 outlook on the top and bottom line despite the sizable Q1 beat, which implies weaker expectations for the upcoming quarters.

2 more downgrades

Wolfe Research downgraded Qualys (NASDAQ:QLYS) to Underperform from Peerperform with a price target of $100.00 following last week’s Q1 beat.

While management expects growth to accelerate in Q2, Wolfe’s model suggests that the incremental billings dollars added would need to see a meaningful change in trajectory in order to hit the guidance. The firm believes Qualys will be a single-digit revenue grower in 2024, compared to current street expectations of low double digits.

LivePerson (NASDAQ:LPSN) shares fell more than 6% on Monday after Loop Capital downgraded the company to Sell from Hold and cut its price target to $3.00 from $4.00.