Netflix downgraded ahead of earnings on 'full' 24 expectations: 4 big analyst cuts

Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Netflix, Fortinet , Tractor Supply Company , and JD.com.

InvestingPro subscribers got this news first. Never miss another market-moving headline.

Netflix stock falls after Wolfe Research downgrade

Netflix (NASDAQ:NFLX) shares fell more than 2% pre-market today after Wolfe Research downgraded the company to Peerperform from Outperform, as reported in real-time on InvestingPro.

“2024 ARPU expectations look full, while today's paid-sharing net adds lead to tomorrow's gross add shortfalls,” the analysts commented.

While Netflix has been expanding its share of the global premium video revenue, the analysts flag 2024-2025 growth forecasts as too optimistic.

“If future growth falls short, we doubt that NFLX's 50% P/E and 70% EV/EBITDA premium to the S&P would hold up,” added Wolfe.

The company is set to report its Q3/23 earnings on Oct 18.

Fortinet shares fall after Barclays downgrade

Fortinet (NASDAQ:FTNT) shares fell more than 3% pre-market today after Barclays downgraded the company to Equalweight from Overweight and cut its price target to $63.00 from $71.00.

This decision follows the analysts’ checks that sound incrementally negative for Q3, decreased emphasis on firewall refresh as a spending priority in their CIO survey, and potential valuation declines due to the cyclical slowdown in firewall and timeline to catch up to leading vendors in the SASE market.

“Longer term, we like FTNT's platform approach and think the stock has terminal value, but we see a balanced risk/reward which underpins our Equal Weight rating,” added the analysts.

Two more downgrades

Oppenheimer downgraded Tractor Supply Company (NASDAQ:TSCO) to Perform from Outperform and cut its price target to $210.00 from $280.00.

While Tractor Supply offers promising long-term new unit growth and margin expansion within mid-cap specialty retail, the analysts noted nearer-term concerns. “We are increasingly concerned that TSCO shares do not yet discount adequately for a potentially pro-longed, post-pandemic sales expansion lull, likely to occur as COVID-related tailwinds gradually abate,” commented Oppenheimer.

JD (NASDAQ:JD).com received downgrades from two Wall Street firms today. Morgan Stanley cut its rating from Overweight to Equalweight with a price target of $33.00 (from $55.00). Meanwhile, Macquarie downgraded the company from Outperform to Neutral with a price target of $32.00 (from $52.00).

"Shares of JD have come off sharply from peak, and YTD underperformance indicates market concerns over its lackluster growth outlook,” commented Macquarie.

Amid whipsaw markets and a slew of critical headlines, seize on the right timing to protect your profits: Always be the first to know with InvestingPro.

Start your free 7-day trial now.