4 big analyst cuts: Playa Hotels plunges on sharp BofA downgrade

Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: Downgrades at Playa Hotels & Resorts, Antero Resources, World Fuel Services, and Host Hotels.

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Playa Hotels & Resorts double downgraded at BofA

Playa Hotels & Resorts (NASDAQ:PLYA) shares plunged nearly 7% yesterday after BofA Securities downgraded the company to Underperform from Buy with a price target of $8.00 (from $10.00), signaling potential challenges ahead for the company amidst current market uncertainties.

The firm noted worries about declining demand patterns in the Caribbean, an area that had seen a boost from the pandemic. The surge of delayed demand for travel is now stabilizing, which could impact the growth of the company.

The firm also pointed out the risks of potential over-earning and a change in tourism markets. According to BofA, the increased competition due to the reopening of cities, international markets, and cruise lines, along with the company’s higher operating leverage compared to asset light peers, could impact its ability to respond effectively to market changes.

Antero Resources slashed at JPMorgan

JPMorgan downgraded Antero Resources (NYSE:AR) to Neutral from Overweight and cut its price target to $30.00 from $36.00, noting the company remains nearly unhedged in 2023+ on natural gas and liquids.

While noting it remains a longer term fan of the stock, given the company’s clean balance sheet and leverage to better gas fundamentals in the 2024/2025 time frame, JPMorgan slashed its rating as the current strip pricing makes the company's valuation less appealing.

2 more downgrades

World Fuel Services (NYSE:WKC) shares plummeted more than 10% yesterday after BofA Securities downgraded the company to Underperform from Buy with a price target of $22.00.

The rating change was due to macro headwinds from declining crude pricing and thus a more muted fuel-forwarding volume outlook.

Morgan Stanley downgraded Host Hotels & Resorts (NASDAQ:HST) to Underweight from Equalweight and cut its price target to $15.50 from $19.00. Shares fell more than 2% pre-market today.

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