Five Stocks Getting Downgraded: Illinois Tool Works Drops to Sell

MarketDash Editorial Team

9 hours ago

Wall Street analysts are turning cautious on several notable companies. Goldman Sachs downgraded Illinois Tool Works to Sell with a $230 price target, while Baird cut Zimmer Biomet to Neutral and slashed its target to $100. GitLab, StubHub, and Atmos Energy also faced rating cuts as analysts reassess their outlooks.

Tuesday brought a wave of analyst downgrades across multiple sectors, with Wall Street reassessing its outlook on companies ranging from industrial manufacturers to software developers. Here's what you need to know about the five stocks facing more skeptical views from the Street.

Illinois Tool Works Hits Sell Territory

Goldman Sachs analyst Joe Ritchie made the most dramatic move, downgrading Illinois Tool Works Inc (ITW) from Neutral all the way to Sell while cutting the price target from $258 to $230. That's particularly notable given the stock closed Monday at $258.66, suggesting Ritchie sees downside ahead. It's not every day a major Wall Street firm slaps a Sell rating on a blue-chip industrial name.

Medical Device Maker Faces Reality Check

Baird analyst Jeff Johnson took a more measured but still significant step with Zimmer Biomet Holdings Inc (ZBH), moving from Outperform to Neutral and slashing the price target from $117 to $100. The stock closed Monday at $92.43, meaning even the reduced target implies some upside, but the enthusiasm has clearly cooled on the orthopedic device manufacturer.

Tech and Ticketing Get Trimmed

Over in the software world, Keybanc analyst Jason Celino downgraded Gitlab Inc (GTLB) from Overweight to Sector Weight. GitLab shares closed at $38.59 on Monday. The move to Sector Weight essentially means the analyst sees the stock performing in line with peers rather than outperforming.

Meanwhile, Citizens analyst Andrew Boone downgraded StubHub Holdings Inc (STUB) from Market Outperform to Market Perform. StubHub shares closed at $14.06 on Monday, as the ticket resale platform faces a more neutral outlook from the analyst community.

Utility Sector Sees Adjustment

Rounding out Tuesday's downgrades, Morgan Stanley analyst Stephen Byrd moved Atmos Energy Corp (ATO) from Overweight to Equal-Weight while cutting the price target from $182 to $172. Atmos Energy shares closed at $170.75 on Monday, trading just below even the reduced target as the natural gas utility faces a recalibrated view.

These downgrades reflect analysts responding to changing market conditions, valuation concerns, or shifting fundamental outlooks. Whether they prove prescient or premature will depend on how these companies perform in the quarters ahead.