4 big analyst cuts: For Marriott, 'shorter-term upside is limited,' says Bernstein

Here is your Pro Recap of the biggest analyst cuts you may have missed since Friday: downgrades at Marriott, Forward Air, Public Service Enterprise, and Mosaic.

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Marriott cut to Market Perform

Marriott International (NASDAQ:MAR) shares were falling more than 2% pre-market today after Bernstein downgraded the company to Market Perform from Outperform with a price target of $218.00 (from $204.00), as reported in real time on InvestingPro.

The firm moved to the sidelines following a strong run in the stock, up 42% YTD.

"The valuation gap has closed with Hilton (our core thesis) and although we still like the mid-longer term outlook for Marriott as it enters mid-scale and continues to generate material cash — the shorter term upside is limited by valuation and the slowdown of US Luxury."

Forward Air plunges on analyst concerns over the acquisition of Omni Logistics

Forward Air (NASDAQ:FWRD) was downgraded by three Wall Street firms on Friday given the concerns that the company's announced $3.2 billion acquisition of Omni Logistics might usher in novel risks to its business.

Stifel downgraded the company to Hold from Buy and cut its price target to $103.00 from $127.00.

"Management anticipates significant cash earnings accretion by year 2, but we see sizable execution risk and potential revenue dis-synergies as Forward ingests one of its largest customers. With this deal, Forward Air is once again a show me story, and we're moving to the sidelines for now."

Wolfe Research downgraded the company to Underperform from Peerperform with a price target of $80.00, expecting significant EPS dilution in 2024.

Meanwhile, Raymond James downgraded the company to Market Perform from Strong Buy.

Shares plunged more than 25% on Friday.

Two more downgrades

UBS downgraded Public Service Enterprise (NYSE:PEG) to Neutral from Buy and cut its price target to $66.00 from $70.00, noting that “the risk/reward looks more balanced at the current valuation in front of an important rate case filing in NJ in Q4”.

The Mosaic (NYSE:MOS) shares fell more than 2% pre-market today after Barclays downgraded the company to Underweight from Equalweight with a price target of $40.00.

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