Wells Fargo downgraded after Q4 earnings, Adobe slashed: 4 big analyst cuts

Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Adobe, Wells Fargo , Playtika, and Charles Schwab.

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Adobe cut at Exane BNP Paribas

Exane BNP Paribas downgraded Adobe Systems (NASDAQ:ADBE) to Underperform from Neutral with a price target of $499.00, as reported in real-time on InvestingPro.

The company reported its Q4 earnings last month, with EPS of $4.27 and revenues of $5.05 billion coming in above the consensus estimates.

Wells Fargo downgraded following Q4 earnings

Odeon Capital downgraded Wells Fargo (NYSE:WFC) to Hold from Buy with a price target of $48.80 (from $49.25) following the company’s reported Q4 results, where the bank posted earnings of $0.86 per share.

The analysts noted that this figure includes approximately $0.43 per share in net one-time charges, which implies operating earnings of $1.29 per share for the quarter. The analysts suggest that Wells Fargo may struggle to replicate this level of performance until around mid-2026. “Therefore, even though the bank’s strategy makes sense, it may be tough going for the stock,” commented Odeon Capital.

Two more downgrades

Playtika Holding (NASDAQ:PLTK) shares fell more than 3% pre-market today after BofA Securities downgraded the company to Underperform from Neutral and cut its price target to $8.00 from $11.00.

The bank's analysis focused on concerns about Playtika's long-term growth trajectory and the likelihood of a re-rating through 2024. The analysts expressed skepticism regarding the potential for an aggressive 2024 guidance to serve as an upside catalyst for the company.

One of the primary challenges identified is the maturity of Playtika's game portfolio, which, despite contributing to its strong margin profile, represents a headwind for future growth.

Revenues of PLTK’s top social casino games, which have operated for 10+ years, appear to be in slow, consistent declines, and a mix shift into newer and more casual titles could pressure margins due to their lower profitability compared to top social casino titles.

Keefe, Bruyette & Woods downgraded Charles Schwab (NYSE:SCHW) to Market Perform from Outperform and cut its price target to $70.00 from $75.00.

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