Latest news with #downgrade
Yahoo
2 days ago
- Business
- Yahoo
GE Vernova hit with downgrades on its valuation after sharp rally
-- Mizuho and Guggenheim both downgraded shares of GE Vernova to Neutral given its stretched valuation following a roughly 90% rise this year. Though Mizuho raised its price target to $670 from $410, saying strong bookings in gas turbines and grid upgrades continue to drive earnings. But analysts at Mizuho believes much of the improvement is now reflected in the stock. The brokerage sees 2028 EBITDA reaching $10 billion, ahead of peers, but notes the stock trades at 16.7 times that estimate, slightly above industrial and AI-related peers. Guggenheim also downgraded the stock, saying even its above-consensus earnings forecasts no longer justify a Buy rating given the current price. While the firm still sees value over a longer time frame, it cited limited near-term upside and removed its $600 price target. 'Valuation is still admittedly attractive if investors are willing to focus on 2029 and beyond, but considering the wait required to get to that outcome, we no longer find GEV attractive from a risk/return standpoint,' analysts said Guggenheim said GE Vernova reported better-than-expected results for the second quarter and raised full-year guidance. Sales of aeroderivative turbines, used in data centers, accelerated during the quarter, while backlog growth suggests potential for production expansion beyond 2028. However, Mizuho said a formal announcement on capacity expansion is unlikely before late 2026. Related articles GE Vernova hit with downgrades on its valuation after sharp rally Analyst bullish on Texas Instruments on earnings lift as capex winds down Cisco upside now largely priced in, Evercore ISI downgrades stock Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
4 days ago
- Business
- Bloomberg
Finland's Credit Rating Cut at Fitch as Debt Pile Keeps Growing
Finland suffered its first downgrade in almost a decade after Fitch Ratings cut the Nordic country's credit rating over its failure to rein in ballooning debt. Fitch late on Friday lowered Finland's long-term rating by one level to AA from AA+, the lowest credit grade among the top three rating companies, almost a year after it issued a negative outlook on the debt. Finland's rating at Fitch is now the third-highest, eight levels above junk.
Yahoo
5 days ago
- Business
- Yahoo
Procter & Gamble, Carvana, Boston Beer: Trending Tickers
Procter & Gamble (PG) was downgraded to Neutral from Overweight by JPMorgan ahead of the company's quarterly earnings report next week. Carvana (CVNA) was upgraded to Outperform by Oppenheimer, citing a "humming" business model. Boston Beer (SAM) stock rises after reporting second quarter earnings that beat expectations. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Now time for some of today's top trending tickers. We're going to start off here with Proctor and Gamble. Was hit with a downgrade of JP Morgan. That move comes ahead of the company's fourth quarter earnings report. That's on tap next week. Uh Lou, so team of JP Morgan basically what they're saying is big picture, we expect another challenging quarter from most of the names, the 16 names they say they cover in that household and personal care industry. They do downgrade uh Proctor and Gamble to neutral. Says that we're taking a pause. We expect another lackluster quarter and normalization of category growth. They say Lou, this one, they say it, listen, best in class, they talk about robust and discipline innovation process. They say that's second to none, but what they seem to have some concerns around lower income consumers. Yeah, I mean best in class in a boring industry is hard to get excited about, right? I mean, but this is a defensive play. I mean, if you look at it right now, look at the performance over the last three, six months, year to date, one year. Year to date in the red down about 5%. Yeah, yeah. I mean, it's it's been solid over time, 3 to 4%, but when you can go get 3 to 4% plus in treasuries, why why allocate here with equity risks? So, I think it makes sense. I mean, a lot of times analysts are after the fact, after after the earnings report. I think it makes sense ahead of time saying, hey, consumers got it, going to be strained. We know that's happening, especially on the lower income brackets. It's more cautious, yeah. Yeah, it gets more cautious and it's safe to kind of step to the sidelines here. There's other opportunities. All right, let's talk about another one here, Carvana. Riding higher as Oppenheimer upgrades that one to outperform, knowing the company's business model is now humming. And that's how they put it. They upgrade this one to outperform. So, equivalent of a buy. Business model, they tell their clients, it's humming, generating meaningful cash, scaling, capitalizing, they talk about on well upon uh improving underlying demand trends. They do acknowledge, yes, this one's had a move. Lou, we're up about 60% this year, but investors still under appreciate they argue near and longer term growth and profit potential. Yeah, I have to be careful here. My reflexes is to say, why are you so late to this party? But to Brent's point at Palantir, he's a little late to that party too, but there's all the tailwinds necessary to keep going. People were late to Nvidia and look how far Nvidia has gone. So I think Carvana here, it makes a lot of sense to me from this standpoint. Tariffs are directly impacting autos, new auto sales. Carvana is more of the frictionless auto purchasing platform. I think it makes sense. It's consumers are going to go, hey, I don't want to pay higher prices for a new auto. I could do something that's easy and not have to deal with that whole used car sales process, which we all abhor. Uh so it could lead to it. So it could be a strong gainer here on the tariff uh headwind. All right, third one I want your your take on Lou, that would be Boston Beer. Now, they topped earnings estimates for the second quarter. Company also revising lower its expected financial hit to earnings. So, they report earnings per share for the second quarter that that did beat. Um they did revise lower the expected impact EPS from tariffs. Uh the analysts are weighing in here. We got Jeffries for example, they have a hold on this name. They talk about better margin visibility. They talk about more benign tariff headwinds. The company is saying weaker volume environment Lou, but they also talk about raising gross margin guidance as we continue they say to see positive impacts from multi-year margin enhancement initiative. The stock is it's had a rough run. It's down about 30% this year. Yeah, I think this is a relief rally, right? The tariff impact is not going to be the 20 to 30 million. It's maybe 15. You're seeing some margin expansion. Um this one's nostalgic to me. I mean this was like the first micro brew that was out there before the world blew up with 47,000 options. Um they have the Truly brand. So I think they have good consumer demand, but I think also too, what concerns me is they're pointing to immigration issues and the decline in the Hispanic market. I think, you know, from a company that really has got to be led by marketing when you talk about this alcohol and beverage segment, you can overcome those one and two percent demographic shifts. I don't think you need to lean into that. Sounds of me a little bit of an excuse. Um but again, you said it's a it's been going rough this year performance wise. This is a step in the right direction if they can can follow through. Related Videos Homebuilding sector playbook: 4 top stock picks Why consumer stocks are falling out of favor on Wall Street 4 tips to save money on back-to-school shopping How life insurance builds generational Black wealth Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
CNI- Is this Canadian Railway a Value Trap
Shares of Canadian National Railway Co. (CNI) fell after the railway operator cut its profit growth forecast for the third year in a row. CN Rail now sees profit growing in the mid-to-high-single-digit range, down from 10-15%. The company is blaming tariff headwinds and a stronger Canadian dollar, writes Amber Kanwar, host of the In the Money with Amber Kanwar podcast. To get more articles and chart analysis from MoneyShow, subscribe to our .) It wasn't a good day to be a shareholder as many analysts said the stock is destined for purgatory after the results. Not only has volume growth been lackluster, but recent M&A chatter is likely to leave CN Rail on the outside looking in. (Editor's Note: Amber will be speaking at the 2025 MoneyShow Toronto, scheduled for Sept. 12-13. Click HERE to register.) Many analysts are having a hard time finding a catalyst. I've counted at least three downgrades basically because of that. 'We see few reasons for the stock to move meaningfully higher in the short-to-midterm,' wrote National Bank's Cameron Doerksen in his downgrade yesterday morning. 'With US railroad merger speculation growing, we expect investor interest in the sector to be more focused on the US peer group with funds potentially flowing out of CN as a result.' See also: TTE: A High-Yielding Energy Play We Can't Pass Up This is threatening to become the next Pfizer Inc. (PFE) in my portfolio (lured in by value). There are others hanging on like me. 'We maintain our Buy rating, because we find it hard to downgrade CN when it trades at such a wide discount vs. the peers and just ~5% above its 52-week low,' wrote TD's Cherilyn Radbourne. More From The Fed, Gold, and the US Dollar: Where Things Stand FDS: Fiscal Q3 Estimates Missed, But Longer-Term Growth on Track KARO: A Singapore Tech Name with a Top-Notch "Zen Rating" Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Why Circle Internet Stock Is Sinking Today
Key Points An analyst has downgraded Circle's stock, citing concerns about increased competition and an unsustainable valuation. The downgrade came with a major drop in the analyst's stock price and now reflects a steep downside from the stock's current price. 10 stocks we like better than Circle Internet Group › Shares of Circle Internet Group (NYSE: CRCL) are falling on Tuesday, down 8.3% as of 3:11 p.m. ET. The drop comes as the S&P 500 gained 0.1% and the Nasdaq Composite lost 0.3%. Circle, the company behind the second most popular stablecoin, USDC, received a sell rating downgrade from a Wall Street analyst. Circle is a sell according to Compass Point An analyst at the investment bank Compass Point downgraded Circle stock to a sell, citing two main issues: one, an increasingly competitive market that could threaten Circle as a leader in the space, and two, valuation concerns. The downgrade came with a significant price target cut -- from $205 to $130. The analyst also said that despite the passing of the Genius Act, a bill that provides a regulatory framework for stablecoins in traditional banking and finance, he does not see upside. He believes investors will "sell the news," saying: "Crypto investors typically sell the news after highly anticipated events. As such, we expect CRCL to retrace some of its recent rally." The downgrade helped take the wind out of Circle's sails as investors began to digest the stock's incredible rally. Circle's valuation is not sustainable Circle's stock has skyrocketed since its recent initial public offering and now trades at a valuation that I don't think makes sense. Although its USDC is the second most popular stablecoin, I think there is a considerable threat from banks themselves creating their own and bypassing the need for USDC. Its current market capitalization of more than $43 billion and net income last year of just $155 million doesn't line up for me, and I would avoid the stock. Should you invest $1,000 in Circle Internet Group right now? Before you buy stock in Circle Internet Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Circle Internet Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,477!* Now, it's worth noting Stock Advisor's total average return is 1,055% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Circle Internet Stock Is Sinking Today was originally published by The Motley Fool
