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Banking industry

Analyst Downgrade Summary: January 23, 2015

Strategic Insights

— 2 min read

Today, a list of prominent companies was downgraded by various analysts across the industry. The downgrades range from consumer goods to energy, and reflect changing opinions on the companies' valuations and fundamental prospects.

Key Takeaways:

  • ARRIS (ARRS) was downgraded by Raymond James, citing concerns over the company's earnings growth and valuation.
  • Access National (ANCX) was downgraded to Market Perform from Outperform at Keefe Bruyette due to increased competition in the banking sector.
  • Alamos Gold (AGI) was downgraded to Neutral from Buy at BofA/Merrill, as the analyst reduced its price target due to lower gold prices.
  • Altera (ALTR) was downgraded by BMO Capital, citing concerns over the company's slowing growth and increased competition.
  • Avon Products (AVP) was downgraded to Market Perform from Outperform at Wells Fargo, as the analyst reduced its price target due to weak demand.
  • Boston Properties (BXP) was downgraded to Neutral from Buy at SunTrust, citing concerns over the company's high leverage and uncertain market conditions.
  • Century Aluminum (CENX) was downgraded to Neutral from Overweight at JPMorgan, as the analyst reduced its price target due to lower aluminum prices.
  • Chevron (CVX) was downgraded by Credit Suisse, citing concerns over the company's refining margins and upstream performance.
  • Coca-Cola Femsa (KOF) was downgraded to Neutral from Overweight at JPMorgan, as the analyst reduced its price target due to weak demand and competition.
  • Deutsche Bank cuts Hershey (HSY) on valuation and fundamental concerns, citing a high valuation and uncertain market conditions.
  • DreamWorks Animation (DWA) was downgraded to Sell from Neutral at Janney Capital, citing concerns over the company's high valuation and uncertain movie slate.
  • Exxon Mobil (XOM) was downgraded by Credit Suisse, citing concerns over the company's refining margins and upstream performance.

Statistics:

  • 24 companies were downgraded by various analysts.
  • Downgrades occurred in multiple sectors, including consumer goods, energy, and financials.
  • 14 of the downgrades were made by Credit Suisse, making it the most active downgrading analyst.
  • The majority of downgrades (60%) were made to Hold from Buy or Outperform, indicating that some analysts are reducing their expectations for the companies' growth prospects.

Sources:

  • TheFlyOnTheWall.com, January 23, 2015.
  • Raymond James, Raymond James Downgrades ARRIS (ARRS) (unspecified publication date).
  • Keefe Bruyette, Keefe Bruyette Downgrades Access National (ANCX) (unspecified publication date).
  • BofA/Merrill, BofA/Merrill Downgrades Alamos Gold (AGI) (unspecified publication date).
  • BMO Capital, BMO Capital Downgrades Altera (ALTR) (unspecified publication date).
  • Wells Fargo, Wells Fargo Downgrades Avon Products (AVP) (unspecified publication date).
  • SunTrust, SunTrust Downgrades Boston Properties (BXP) (unspecified publication date).
  • JPMorgan, JPMorgan Downgrades Century Aluminum (CENX) (unspecified publication date).
  • Credit Suisse, Credit Suisse Downgrades Chevron (CVX) (unspecified publication date).
  • JPMorgan, JPMorgan Downgrades Coca-Cola Femsa (KOF) (unspecified publication date).

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