Envista cut to Sell at Goldman Sachs, CRISPR to Underperform: 4 big analyst cuts

Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed today: downgrades at Envista, CRISPR Therapeutics, Super Micro Computer, and Vornado Realty Trust.

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Envista slashed to Sell at Goldman Sachs

Envista (NYSE:NVST) shares dropped more than 2% pre-market today after Goldman Sachs downgraded the company to Sell from Neutral with a price target of $22.00.

According to the analysts, the downgrade is driven by concerns about Envista's product positioning in implants and equipment, a perceived lack of innovation in its pipeline, and competitive pressures. They believe these factors may hinder Envista's ability to quickly re-accelerate growth towards its mid-single digit to high-single digit target and achieve margin expansion.

The analysts noted that the dental industry is entering 2024 amidst uncertain market conditions, marked by a decline in patient traffic, elective demand, and capital expenditures in dental practices in the second half of 2023. “Beyond current macro conditions, we see headwinds to longer run growth from limited product innovation, ASP pressure in equipment, and challenging competitive dynamics in implants and clear aligners,” commented Goldman Sachs.

CRISPR Therapeutics cut at TD Cowen

TD Cowen downgraded Crispr Therapeutics (NASDAQ:CRSP) to Underperform from Market Perform with a price target of $30.00, as reported in real-time on InvestingPro.

While acknowledging last week’s FDA approval of Casgevy as a significant scientific achievement for gene editing, the analysts expressed skepticism about its broad application. They suggest that the current high valuation of CRISPR Therapeutics is largely due to a recent aggressive short squeeze rather than fundamental market factors.

Two more downgrades

Susquehanna downgraded Super Micro Computer (NASDAQ:SMCI) to Negative from Neutral with a price target of $160.00. Shares fell more than 2% pre-market today.

The downgrade is primarily due to increased gross margin pressure arising from heightened competition and rising costs for Memory/Storage. Additionally, the diversification in server architecture, especially for AI applications, necessitates higher inventories to accommodate a wider range of stock-keeping units (SKUs) for each configuration.

Our estimate change and downgrade is based on industry fundamentals. We applaud SuperMicro's strategy of enabling mass customization of next gen server architecture, including AI Servers. However, consistent with our industry view and recent checks from throughout the supply chain, there are several factors that have led to estimate reduction.

Vornado Realty Trust (NYSE:VNO) shares fell more than 1% pre-market today after Evercore ISI downgraded the company to Underperform from In Line with a price target of $28.00 (from $23.00).

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