5 analyst cuts: WWE stock downgraded on UFC merger | Pro Recap

By Davit Kirakosyan

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

World Wrestling Entertainment downgraded to hold on UFC merger news

Benchmark downgraded World Wrestling Entertainment (NYSE:WWE) to Hold from Buy after the company agreed to be merged with Endeavor (NYSE:EDR)-owned UFC, to form a new global live sports and entertainment company, which will be listed on the NYSE as TKO. Endeavor and WWE will own 51% and 49% of TKO, which is being valued at an estimated $21 billion.

The firm said it is cautious Endeavor's valuation of TKO could be aggressive, and the all-stock and the somewhat complex transaction was disappointing versus a cash deal consideration.

Shares surged more than 8% yesterday and are currently up 2% pre-market.

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Boeing downgraded ahead of Q1 earnings announcement

Northcoast Research downgraded Boeing (NYSE:BA) to Sell from Neutral with a price target of $180.00.

The company will report its Q1/23 earnings on April 26. Wall Street analysts expect EPS of ($0.71) and revenue of $17.7B.

3 more downgrades

Raymond James downgraded CubeSmart (NYSE:CUBE) to Outperform from Strong Buy with a price target of $55.00.

The firm maintains a constructive view on CubeSmart for three reasons: (1) anticipated easier comps in 2023 leading to improved performance relative to peers, (2) its attractive valuation in both absolute and relative terms, and (3) its smaller size, which makes any external growth more significant. However, as the company is a heavy overweight name among the group, Raymond James noted that there are risks if fundamentals fall short. The firm believes now is the time to temper enthusiasm after recent outperformance.

BofA Securities downgraded Stem (NYSE:STEM) to Underperform from Neutral and cut its price target to $5.00 from $9.00 due to a lack of confidence in estimates. Shares plunged more than 7% yesterday.

While the 2023 catalyst is suggested as an EBITDA inflection in the second half of the year, the firm sees the latest convert issuance weighting on Street confidence considering working capital considerations.

On Holding (NYSE:ONON) shares fell more than 4% pre-market today after Baird downgraded the company to Neutral from Outperform with a price target of $33.00.