When Wall Street analysts lose conviction, it's worth paying attention. Wednesday brought a round of downgrades across several sectors, with five stocks seeing their ratings pulled back as analysts recalibrated expectations.
Leading the headlines was Portland General Electric Co (POR), which UBS analyst Gregg Orrill moved from Buy to Neutral. The new $51 price target sits slightly above where shares closed Tuesday at $48.70, suggesting Orrill sees limited upside from current levels.
HSBC analyst Laisha Zaack made an interesting call on QuantumScape Corp (QS), downgrading the solid-state battery developer from Hold to Reduce while simultaneously raising the price target from $5.30 to $10.50. That might sound contradictory until you consider that shares closed Tuesday at $12.39, well above even the raised target. Translation: the stock has run too far, too fast.
Over in the coatings business, RBC Capital analyst Arun Viswanathan downgraded Axalta Coating Systems Ltd (AXTA) from Outperform to Sector Perform, cutting the price target from $35 to $30. With shares closing at $28.30 on Tuesday, the stock is already trading below the new target, suggesting some potential upside if Viswanathan's numbers hold.
The beverage sector wasn't spared either. Wells Fargo analyst Chris Carey moved Molson Coors Beverage Co (TAP) from Overweight to Equal-Weight, trimming the price target from $53 to $50. Molson Coors shares closed Tuesday at $45.96, leaving some room to the new target but clearly missing the mark on Carey's previous expectations.
Finally, in the software space, Truist Securities analyst Joel Fishbein downgraded GitLab Inc (GTLB) from Buy to Hold and slashed the price target from $55 to $44. GitLab shares closed at $43.69 on Tuesday, trading just below the newly reduced target and significantly off the previous bullish outlook.
These downgrades reflect changing sentiment across different industries, from utilities and industrials to beverages and enterprise software. Whether these analysts are early or late to the party remains to be seen, but the message is clear: expectations are being reset lower.