5 analyst cuts of the day: Block slashed after Hindenburg accusations | Pro Recap

By Davit Kirakosyan

Investing.com -- Here is your daily Pro Recap of the biggest analyst cuts you may have missed on InvestingPro since yesterday. Start your free 7-day trial to get this news first.

Block downgraded to Neutral, shares plunge on Hindenburg Research accusations

Atlantic Equities downgraded Block (NYSE:SQ) to Neutral from Overweight and cut its price target of $70.00 from $95.00.

The company announced yesterday that it intends to work with the SEC and explore legal action against Hindenburg Research for the factually inaccurate and misleading report they shared about Cash App business.

Hindenburg is known for these types of attacks, which are designed solely to allow short sellers to profit from a declined stock price

Atlantic Equities said it is less concerned about the high fees and user metrics, but a significant proportion of profits could be impacted longer term by improving risk controls to reduce illegal activity. "In addition, Block's initial response lacked the specific rebuttals against Hindenburg's arguments that we would have hoped for," added the firm.

Shares plunged more than 14% yesterday and are currently trading 3% lower pre-market today.

Coinbase slashed again after dour SEC news

TD Cowen hopped on the bandwagon and downgraded Coinbase (NASDAQ:COIN) to Underperform from Market Perform after yesterday's SEC Wells Notice, citing "incremental risk to operations from the SEC Wells Notice and crypto banking crackdown."

The firm added, "COIN appears headed for litigation against the SEC."

Yesterday saw several analysts voicing concerns as well, and Oppenheimer downgraded the cryptocurrency exchange after the SEC notice, which typically indicates that the SEC may ultimately take legal action against the company for regulatory violations.

Shares plunged more than 14% yesterday and were ticking some 2% higher in recent trading.

3 more cuts

Barclays downgraded SL Green Realty (NYSE:SLG) to Underweight from Overweight and cut its price target to $22.00 from $47.00. Shares fell more than 8% yesterday.

Exane BNP Paribas initiated coverage on BILL (NYSE:BILL) with an Underperform rating.

TD Cowen downgraded American Well (NYSE:AMWL) to Market Perform from Outperform and cut its price target to $2.50 from $5.00.

"While we continue to believe AMWL is well-positioned for the future of virtual care, 2023 is not the inflection year post-Converge migration we anticipated, as 2023 guidance pushes growth out another year," said the firm.

Shares dropped more than 3% yesterday.