Pro Recap: Analyst Cuts at Carrier, Foot Locker, Jack Henry, and Welltower
Carrier Global Cut to Underperform
Shares of Carrier Global fell over 1% on Thursday after Wolfe Research downgraded the company to Underperform from Peerperform. Wolfe Research cited a more challenging outlook for EU heat pump demand and increased financing costs as reasons for the downgrade. The analysts also adjusted their growth estimate for Viessmann, a segment of Viessmann Group that Carrier Global acquired in April. They noted a decline in German subsidy applications and unfavorable cost ratios in Europe. Carrier shares were trading at $55.37.
Foot Locker Slashed to Sell
CFRA downgraded Foot Locker from Hold to Sell, expressing caution as the stock trades at a higher price-to-earnings ratio than its historical average. The analysts highlighted challenges from declining in-mall sales, brands shifting to direct-to-consumer models, and potential financial pressure on low- to middle-income consumers in the US. CFRA advised avoiding the stock until Foot Locker reduces its inventory and improves operational performance. Despite the downgrade, shares were rising to $20.89.
Two More Downgrades
Goldman Sachs downgraded Jack Henry & Associates to Sell from Neutral, while JPMorgan downgraded Welltower to Neutral from Overweight. Jack Henry & Associates shares fell 1.7% to $144.63, while Welltower shares were down 1.1% to $84.84.
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