Downgrades Today
Diary #12
Today’s meaningful downgrades courtesy of TheFly:
BofA downgraded PayPal ($PYPL) to Underperform from Neutral with a $53 price target. The firm sees a “weak” Q3 setup and argues that “every transformation lever is a 2027+ story.”
StoneX downgraded Spotify ($SPOT) to Hold from Buy and removed the firm’s previous price target. While the firm remains “strongly convinced” of Spotify’s long-term network effects and subsequent product and services scale advantages, it is downgrading the shares on what it views as difficult “financial optics” in the next twelve months.
JPMorgan downgraded Albertsons ($ACI) to Neutral from Overweight with an unchanged price target of $14 following the fiscal Q2 report. While the shares trade at a sizable discount to other U.S. food retailers, this could be warranted given Albertsons’ ongoing operational challenges and its acknowledgement this week that its self-help initiatives have not been as effective as it planned, the firm tells investors in a research note. Goldman Sachs also downgraded Albertsons to Neutral from Buy with a price target of $13, down from $16.
KeyBanc downgraded Cirrus Logic ($CRUS) to Sector Weight from Overweight without a price target. Apple (APPL) supplier cuts indicate iPhone units are likely to decline in 2027 and 80% of Cirrus Logic’s revenues are tied to Apple, the firm tells investors in a research note.
Goldman Sachs downgraded Par Pacific ($PARR) to Neutral from Buy with a price target of $94, up from $90. The firm sees downside risk to 2027 consensus estimates from elevated freight rates.
Position: None
