5 big analyst picks & cuts: ASML, Applied Materials slashed

By Davit Kirakosyan

Here is your Pro Recap of the biggest analyst picks and cuts you may have missed since Friday: downgrades at ASML and Applied Materials, upgrades at Abcam and West Pharmaceutical, and a buy initiation at LendingClub.

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ASML downgraded to Neutral

ASML (NASDAQ:ASML) shares fell more than 2% on Friday after New Street Research downgraded the company to Neutral from Buy.

Earlier last week, JPMorgan reiterated its Overweight rating on the stock, noting it believes that AI will continue to be an important driver of the company's growth in the future.

Year-to-date, shares are up more than 32%. The company is set to report its Q2/23 earnings next month. Street estimates stand at €4.94 for EPS and €7.23 billion for revenues.

Applied Materials downgraded again

New Street Research downgraded Applied Materials (NASDAQ:AMAT) to Neutral from Buy on Friday.

Earlier last week, Needham downgraded the company to Hold from Buy, stating that semicaps are overbought on AI hype.

Last month, the company reported its Q2 earnings, with EPS and revenues beating the consensus estimates.

LendingClub gets Buy rating at Jefferies

Jefferies initiated coverage on LendingClub (NYSE:LC) with a Buy rating and a price target of $13.50, noting that the company is an early mover in the Fintech space with a deep operating history, bank charter, and a tech-enabled lending platform.

The firm anticipates Lending Club’s ROE to bottom in mid-2023 and provides several catalysts that are expected to boost both ROE and the company's valuation. Additionally, the firm highlighted the competitive advantages associated with the bank charter and a diversified growth strategy going forward.

A pair of upgrades

BofA Securities upgraded Abcam (NASDAQ:ABCM) to Buy from Neutral with a price target of $25.00.

Shares jumped more than 17% on Friday after the company said it had received several takeover inquiries. This was followed by Jonathan Milner’s letter to shareholders calling for the removal of several board members. Milner, the founder of the company, is one of the largest investors in Abcam, with ownership of 6.3%.

BofA Securities upgraded West Pharmaceutical (NYSE:WST) to Buy from Neutral and raised its price target to $405.00 from $390.00.

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