Latest news with #analystdowngrade
Globe and Mail
a day ago
- Automotive
- Globe and Mail
Tesla Stock: Why These 2 Downgrades Are Actually a Buy Signal
[content-module:CompanyOverview|NASDAQ:TSLA] When a stock climbs 14% in just two trading sessions despite getting hit with not one but two analyst downgrades, the market is sending a clear message. Tesla Inc (NASDAQ: TSLA) has done exactly that this week, shrugging off downgrades from both Baird and Argus Research as if they were minor speed bumps on a highway. For growth-focused investors, this apparent disconnect between Wall Street caution and actual market action represents something we love to see and write about: a buying opportunity. The Downgrades That Missed the Mark Monday brought a double dose of analyst pessimism when Baird cut Tesla from Buy to Hold, followed by Argus Research, who made the same move. Both firms cited the same primary concern: the very recent and very public spat between Elon Musk and President Trump, which they believe introduces significant uncertainty to Tesla's prospects. Baird's team also expressed particular skepticism about management's optimistic robotaxi timeline and suggested that positive expectations around the upcoming affordable vehicle launch, which we highlighted last week, might already be baked into the current share price. Meanwhile, Argus focused heavily on how the Musk-Trump dispute could weaken demand, especially as EV tax credits face potential expiration. They warned that Tesla's stock now appears driven more by non-fundamental events than actual business performance. Market Defiance Tells the Real Story But here's what makes Tesla so compelling as a stock to own: Tesla shares have actually gained 14% this week already, suggesting investors are treating the analyst caution as temporary noise rather than a very red warning sign. The stock's ability to climb despite fresh negative coverage indicates that the market sees through the political theater the underlying business momentum and long-term potential. After all, Tesla had posted what analysts called a fundamentally poor quarter in April, yet shares had already begun recovering before the Trump-Musk tensions erupted. That recovery trajectory appears to be reasserting itself regardless of Wall Street's newfound caution. The Bullish Chorus Remains Intact [content-module:Forecast|NASDAQ:TSLA] While Baird and Argus stepped to the sidelines, the broader analyst community tells a different story and is worth noting. The team at Piper Sandler actually reiterated their Overweight rating on Tuesday, echoing the updates from Morgan Stanley and Wedbush this month, already in maintaining bullish stances. Wedbush has been particularly aggressive, slapping a $500 price target on the stock and standing firm despite the recent volatility. This split in analyst opinion actually strengthens the contrarian case. When selective downgrades occur against a backdrop of maintained Buy ratings from other respected firms, it often signals that the negative factors are temporary rather than structural. Case in point: the fact that these downgrades focus primarily on political uncertainty rather than fundamental business deterioration supports this view. Perfect Storm for Patient Capital Tesla's current situation creates an almost textbook setup for contrarian investors. The stock has already absorbed a 25% hit from political noise, endured two high-profile downgrades, and still managed to surge 14% in just two sessions. This combination suggests that temporary headwinds are actually creating opportunity rather than risk. Consider this: if Tesla can gain 14% while dealing with two rare analyst downgrades and political uncertainty, imagine the potential upside once these temporary factors fade. The upcoming affordable vehicle launch and robotaxi development remain on track regardless of Washington drama, and Tesla's core EV market position continues to strengthen globally. For investors who believe in Tesla's long-term transformation story, the current moment offers something increasingly scarce: the chance to buy into a high-growth stock at a potential discount. The Window Is Already Narrowing All that being said, the market's quick dismissal of Monday's downgrades suggests this buying opportunity may be short-lived. Political tensions have a way of resolving themselves, especially when business interests are at stake. Meanwhile, Tesla's product roadmap and market expansion continue regardless of Twitter feuds or analyst hand-wringing. For investors willing to look past the headline noise, these rare downgrades may prove to be perfectly timed entry points rather than warning signals. Where Should You Invest $1,000 Right Now? 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Yahoo
24-05-2025
- Business
- Yahoo
Some Analysts Just Cut Their Sigma Lithium Corporation (NASDAQ:SGML) Estimates
One thing we could say about the analysts on Sigma Lithium Corporation (NASDAQ:SGML) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Following the downgrade, the most recent consensus for Sigma Lithium from its four analysts is for revenues of CA$244m in 2025 which, if met, would be a decent 11% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing CA$266m of revenue in 2025. It looks like the analysts have become a bit less bullish on Sigma Lithium, given the slight decrease in revenue estimates after the latest consensus updates. View our latest analysis for Sigma Lithium Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Sigma Lithium's revenue growth is expected to slow, with the forecast 16% annualised growth rate until the end of 2025 being well below the historical 79% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.6% annually. Even after the forecast slowdown in growth, it seems obvious that Sigma Lithium is also expected to grow faster than the wider industry. The clear low-light was that analysts slashing their revenue forecasts for Sigma Lithium this year. The analysts also expect revenues to grow faster than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Sigma Lithium after today. Hungry for more information? We have estimates for Sigma Lithium from its four analysts out until 2027, and you can see them free on our platform here. Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
23-05-2025
- Business
- Yahoo
Target's Troubles Leave Analysts Most Negative Since 2018
(Bloomberg) -- Wall Street's enthusiasm for Target Corp. is at its lowest in more than six years, as disappointing earnings from the big-box retailer spur a series of analyst downgrades. NY Private School Pleads for Donors to Stay Open After Declaring Bankruptcy Can Frank Gehry's 'Grand LA' Make Downtown Feel Like a Neighborhood? Chicago's O'Hare Airport Seeks Up to $4.3 Billion of Muni Debt NYC's War on Trash Gets a Glam Squad NJ Transit Makes Deal With Engineers, Ending Three-Day Strike Analysts at Bank of America, Melius Research LLC and Telsey Advisory Group all stepped back from their buy-equivalent calls since the company's earnings report on Wednesday, flagging issues including the difficult macroeconomic backdrop, an uncertain outlook and exposure to President Donald Trump's tariff policies. That's dragged Target's consensus rating — a Bloomberg proxy for the ratio of buy, hold and sell recommendations — down to 3.5, the lowest it has been since November 2018 and below peers such as Walmart Inc., TJX Cos Inc. and Costco Wholesale Corp. 'Despite valuation near 10-year lows, we see increased uncertainty as top-line weakness continues,' Bank of America's Robert Ohmes and Kendall Toscano wrote in a note published on Wednesday, downgrading the retailer to neutral. Target's shares closed up 2.2% on Thursday after an earnings-related drop in the previous session. The stock has fallen about 30% this year through Thursday's close, shaving nearly $18.8 billion from its market capitalization. By contrast, the S&P 500 Consumer Staples sub-index gained over 5.3% in the same period. The company cut its annual sales forecast on Wednesday after a sharp pullback in consumer spending along with a hit from tariffs and boycotts linked to the decision to halt diversity initiatives. Pressure is now growing on Brian Cornell, the retailer's chief executive officer, with questions being raised about his ability to recapture growth after two years of choppy results. Telsey Advisory Group analyst Joseph Feldman said his confidence in Target's investment story had been 'shaken' by the company's weak first-quarter performance as well as the lowered and widened annual guidance. Feldman downgraded the stock to market perform. Meanwhile, a 'confluence of factors,' led Melius' Jacob Aiken-Phillips to downgrade the company to hold, including Target's elevated exposure to tariffs compared to the broader retail landscape. Aiken-Phillips also flagged the growing consumer backlash to its Belonging at the Bullseye strategy. 'Even before tariffs re-entered the spotlight, Target was seeing softness in discretionary categories,' Aiken-Phillips wrote in a note published on Thursday. 'Now, a growing backlash over the company's DEI policies is adding another layer of risk.' Another issue, Telsey's Feldman says, is that competitors including Inc., Costco and Walmart are seemingly gaining market share in some of Target's core categories — particularly among upper-income consumers — through offering 'wider assortments, sharper prices, and enhanced convenience.' However, in the longer term, Bank of America's Ohmes and Toscano note that growth in the company's high-margin businesses — including marketplace — may support greater margin stability. Target now has 12 buy-equivalent recommendations, 26 holds and two sells. --With assistance from Janet Freund. (Updates with closing shares and additional details.) Why Apple Still Hasn't Cracked AI Inside the First Stargate AI Data Center How Coach Handbags Became a Gen Z Status Symbol Anthropic Is Trying to Win the AI Race Without Losing Its Soul Microsoft's CEO on How AI Will Remake Every Company, Including His ©2025 Bloomberg L.P. Sign in to access your portfolio
