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Wall Street Turns Sour on Constellation Brands and Four Other Stocks

MarketDash Editorial Team
5 hours ago
Five major companies face analyst downgrades as Wall Street reassesses their prospects. Constellation Brands, Keurig Dr Pepper, and Fortinet are among those losing analyst support, with price targets slashed across the board.

It wasn't a great Wednesday for several high-profile companies as Wall Street analysts pulled back their enthusiasm. Five stocks faced downgrades from major investment banks, with price targets getting chopped and bullish ratings disappearing.

Beverage Giants Lose Their Fizz

Jefferies analyst Kaumil Gajrawala had a particularly busy morning, downgrading two major beverage players. Constellation Brands Inc (STZ) dropped from Buy to Hold with the price target falling from $170 to $154. That's still above where shares closed Tuesday at $142.59, but the analyst clearly sees limited upside from here.

Gajrawala also moved Keurig Dr Pepper Inc (KDP) from Buy to Hold, slashing the target from $39 to $32. The stock closed at $28.59 on Tuesday, meaning even the reduced target implies some upside, but not enough to justify a bullish stance apparently.

Tech and Life Sciences Take Hits

The downgrades weren't limited to the beverage sector. Morgan Stanley analyst Toni Kaplan took Clarivate (CLVT) down a notch from Equal-Weight to Underweight, cutting the price target dramatically from $5 to just $3. With shares at $3.57 on Tuesday, Kaplan sees downside risk ahead for the data analytics company.

Over in cybersecurity, JP Morgan analyst Brian Essex downgraded Fortinet Inc (FTNT) from Neutral to Underweight. The price target dropped from $85 to $75, below Tuesday's closing price of $82.47. That's a clear signal Essex expects the security software maker to decline from current levels.

Rounding out the downgrades, Jefferies analyst Tycho Peterson moved Avantor Inc (AVTR) from Hold to Underperform with a price target cut from $12 to $9. Avantor shares ended Tuesday at $11.20, putting them closer to the new target than anyone following the stock probably wants to see.

What It Means

When multiple analysts at premier Wall Street firms downgrade stocks on the same day, it's worth paying attention. These aren't knee-jerk reactions but considered reassessments of company fundamentals, industry dynamics, or valuation concerns. Whether it's weakening consumer demand hitting beverage companies or competitive pressures in tech, these downgrades suggest analysts see headwinds that weren't fully appreciated before.

For investors holding these names, the downgrades don't necessarily mean it's time to panic sell, but they do warrant a fresh look at your thesis for owning them.

Back to News

Wall Street Turns Sour on Constellation Brands and Four Other Stocks

MarketDash Editorial Team
5 hours ago
Five major companies face analyst downgrades as Wall Street reassesses their prospects. Constellation Brands, Keurig Dr Pepper, and Fortinet are among those losing analyst support, with price targets slashed across the board.

It wasn't a great Wednesday for several high-profile companies as Wall Street analysts pulled back their enthusiasm. Five stocks faced downgrades from major investment banks, with price targets getting chopped and bullish ratings disappearing.

Beverage Giants Lose Their Fizz

Jefferies analyst Kaumil Gajrawala had a particularly busy morning, downgrading two major beverage players. Constellation Brands Inc (STZ) dropped from Buy to Hold with the price target falling from $170 to $154. That's still above where shares closed Tuesday at $142.59, but the analyst clearly sees limited upside from here.

Gajrawala also moved Keurig Dr Pepper Inc (KDP) from Buy to Hold, slashing the target from $39 to $32. The stock closed at $28.59 on Tuesday, meaning even the reduced target implies some upside, but not enough to justify a bullish stance apparently.

Tech and Life Sciences Take Hits

The downgrades weren't limited to the beverage sector. Morgan Stanley analyst Toni Kaplan took Clarivate (CLVT) down a notch from Equal-Weight to Underweight, cutting the price target dramatically from $5 to just $3. With shares at $3.57 on Tuesday, Kaplan sees downside risk ahead for the data analytics company.

Over in cybersecurity, JP Morgan analyst Brian Essex downgraded Fortinet Inc (FTNT) from Neutral to Underweight. The price target dropped from $85 to $75, below Tuesday's closing price of $82.47. That's a clear signal Essex expects the security software maker to decline from current levels.

Rounding out the downgrades, Jefferies analyst Tycho Peterson moved Avantor Inc (AVTR) from Hold to Underperform with a price target cut from $12 to $9. Avantor shares ended Tuesday at $11.20, putting them closer to the new target than anyone following the stock probably wants to see.

What It Means

When multiple analysts at premier Wall Street firms downgrade stocks on the same day, it's worth paying attention. These aren't knee-jerk reactions but considered reassessments of company fundamentals, industry dynamics, or valuation concerns. Whether it's weakening consumer demand hitting beverage companies or competitive pressures in tech, these downgrades suggest analysts see headwinds that weren't fully appreciated before.

For investors holding these names, the downgrades don't necessarily mean it's time to panic sell, but they do warrant a fresh look at your thesis for owning them.

    Wall Street Turns Sour on Constellation Brands and Four Other Stocks - MarketDash News