SolarEdge Technologies and Yum! Brands Receive Downgrades After Q3 Warning
SolarEdge Technologies receives 3 downgrades after Q3 warning
SolarEdge Technologies recently faced a series of downgrades following the release of its preliminary Q3 results. The stock dropped nearly 25% pre-market today as a result. The company’s Q3 revenue is now expected to be in the range of $720-$730 million, significantly below the previous projection of $880-$920M.
Goldman Sachs downgraded SolarEdge Technologies from Buy to Neutral with a $131 price target. The bank finds it challenging to support the stock due to two consecutive quarters of disappointing results and guidance. Deutsche Bank also shifted its rating from Buy to Hold with a $150 price target. They cited the current weakness in US residential demand and anticipated reduced demand trends in Q4 and Q1 before improvements in March. Furthermore, Roth/MKM downgraded the company from Buy to Neutral, pointing to challenges in the European and US residential markets.
Yum! Brands slashed to Neutral
Yum! Brands was downgraded to Neutral from Buy by Redburn-Atlantic. The analysts highlighted a change in the company’s capital structure since it spun off Yum! China in 2016, which has been a key driver of recent earnings growth. However, with the anticipation of a higher for longer environment, there is increased risk to the EPS growth outlook.
Two more downgrades
Seaport Global Securities downgraded Columbia Sportswear to Neutral from Buy due to concerns about the near-term outlook. Factors like a slow start to the fall/winter season and expectations of ongoing warm weather have led to this cautious stance. UBS also downgraded Blue Owl Capital to Neutral from Buy and lowered its price target.
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