Latest news with #stockdowngrade
Yahoo
3 days ago
- Business
- Yahoo
TD Cowen Downgrades Fortive Corporation (FTV) Stock
Fortive Corporation (NYSE:FTV) is one of the TD Cowen downgraded the company's stock to 'Hold' from 'Buy' with a price objective of $50, down from the prior target of $85, as reported by The Fly. Following the spinoff of Ralliant, the thesis on the new Fortive becomes less clear, noted the firm's analyst. The firm mentioned the concerns related to the company's growth trajectory, highlighting that Fortive Corporation (NYSE:FTV)'s strongest business unit has been decelerating post a period of strong performance, with other segments struggling to cater to the expectations and lagging behind competitors. A technician checking a calibration tool in a laboratory environment. As per Fortive Corporation (NYSE:FTV)'s top management, the new Fortive emerges with a robust financial track record with strong FCF generation, ~50% recurring revenue, significant competitive advantages, and a strategic orientation towards attractive markets with healthy secular tailwinds. The renewed emphasis towards accelerating profitable growth via Fortive Business System, together with a new shareholder returns-focused capital allocation strategy, provides the company confidence in delivering strong returns. While we acknowledge the potential of FTV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
4 days ago
- Business
- Yahoo
KeyBanc Downgrades Simulations Plus (SLP) Stock to Sector Weight
Simulations Plus, Inc. (NASDAQ:SLP) is one of the KeyBanc downgraded the company's stock to 'Sector Weight' from 'Overweight' without a price target, as reported by The Fly. The downgrade from the firm highlighted ongoing challenges in the biopharma end market environment, which the firm opines impacts Simulations Plus, Inc. (NASDAQ:SLP) more severely because of the customer concentration and biotech exposure. Furthermore, the firm expects weaker customer demand to continue in the near-to-middle-term. A close-up view of a scientist's hand pressing keys on a laptop as another looks closely at a 3-D model on a large monitor. In Q3 2025, Simulations Plus, Inc. (NASDAQ:SLP)'s revenue increased by 10%, in line with its preliminary revenue. The company's software revenue performed well, increasing 6%, mainly because of its ADMET Predictor® software and due to modest growth in its GastroPlus® and MonolixSuiteTM software. Furthermore, the services revenue for Q3 2025 increased 17%, primarily because of strong performance in the Medical Communications services. During Q3 2025, Simulations Plus, Inc. (NASDAQ:SLP) implemented a strategic reorganization, pivoting from a business unit structure to a functionally driven operating model. This was the final phase of a multi-year transformation in order to streamline operations, unlock synergies, and concentrate resources towards the promising growth opportunities. For FY 2025, Simulations Plus, Inc. (NASDAQ:SLP) expects revenue of between $76 million – $80 million. Wasatch Global Investors, an asset management company, released its Q3 2024 investor letter. Here is what the fund said: 'Simulations Plus, Inc. (NASDAQ:SLP) was the strategy's largest detractor from performance during the quarter. The company develops and produces software that helps pharmaceutical companies achieve efficiencies in the drug discovery process by enabling them, through simulations, to either fine-tune or avoid clinical trials, which are expensive and have a high failure rate. Simulations Plus has a long track record of delivering consistent growth and margin expansion. However, the stock has been down due to concerns about the funding environment for biotechnology and pharmaceutical companies. We reduced our position in Simulations Plus over concerns linked to the company's recent acquisition strategy, which we will continue to monitor. However, we remain confident in the growth potential of the company's core business.' Simulations Plus, Inc. (NASDAQ:SLP) is in the software industry. It is engaged in developing and producing software for use in pharmaceutical research and for education, and offers consulting as well as contract research services to the broader pharmaceutical industry. While we acknowledge the potential of SLP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
TD Cowen Downgrades Fortive Corporation (FTV) Stock
Fortive Corporation (NYSE:FTV) is one of the TD Cowen downgraded the company's stock to 'Hold' from 'Buy' with a price objective of $50, down from the prior target of $85, as reported by The Fly. Following the spinoff of Ralliant, the thesis on the new Fortive becomes less clear, noted the firm's analyst. The firm mentioned the concerns related to the company's growth trajectory, highlighting that Fortive Corporation (NYSE:FTV)'s strongest business unit has been decelerating post a period of strong performance, with other segments struggling to cater to the expectations and lagging behind competitors. A technician checking a calibration tool in a laboratory environment. As per Fortive Corporation (NYSE:FTV)'s top management, the new Fortive emerges with a robust financial track record with strong FCF generation, ~50% recurring revenue, significant competitive advantages, and a strategic orientation towards attractive markets with healthy secular tailwinds. The renewed emphasis towards accelerating profitable growth via Fortive Business System, together with a new shareholder returns-focused capital allocation strategy, provides the company confidence in delivering strong returns. While we acknowledge the potential of FTV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
SoundHound AI (SOUN) Downgraded: What Investors Need to Know Now
SoundHound AI, Inc. (NASDAQ:SOUN) is one of the . On July 14, Piper Sandler analyst James Fish downgraded the stock from Overweight to 'Neutral' with a price target of $12. The firm said it sees a tough setup for the AI company, particularly for the second half of 2025. 'We are downgrading shares of SoundHound from OW to Neutral but reiterating our $12 price target.' The firm noted that even though there is long-term potential for SoundHound, some deals may be pushed into 2026 for the company. The company is currently facing a challenge in trying to achieve profitability while also investing in its Amelia product line. Achieving both these goals effectively, the firm highlighted, can be a challenge for the company. The firm is particularly concerned about how pressure on second-half estimates may negatively impact SoundHound's valuation multiple. Currently, it exceeds 20 times the calendar year 2026 estimates. Piper Sandler is constructive on the company's long-term opportunities regardless of the downgrade, but also acknowledges that execution in the second half of 2025 'could create a squeeze on shares.' SoundHound AI, Inc. (NASDAQ:SOUN) is a voice artificial intelligence company offering voice AI solutions to businesses. While we acknowledge the potential of SOUN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.
Yahoo
05-07-2025
- Business
- Yahoo
Adobe (ADBE) Faces ‘Significant AI Disruption,' Analyst Slashes Price Target to $280
Adobe Inc. (NASDAQ:ADBE) is one of the . On July 2, the stock was downgraded by Redburn Atlantic analyst Omar Sheikh from 'Neutral' to 'Sell' with a price target lowered from $420.00 to $280.00. The firm cited increasing risks to its competitive position as generative AI modifies the creative software industry. 'Adobe's moat is being eroded by tools including Sora, Veo, Imagen, Runway and Midjourney, which now dominate the ideation phase of the content creation process.' – Omar Sheikh, equity analyst at Rothschild & Co Redburn. Sheikh further noted that editing and workflow are also likely to face disruption, which may further disrupt Adobe's ability to sustain its pricing power. 'In this context, we think that to say Adobe faces significant AI disruption is not a controversial statement.' The firm expects Adobe's free cash flow (FCF) growth to slow to low single digits by 2030. It now values the stock at 12x 2026 EV/FCF, compared to the current 17x. 'We now model FCF growth slowing from 8% pa in 2026 to 3% pa by 2030.' Image By peshkov - Adobe Stock Analyst Omar Sheikh has also highlighted that Firefly is behind competitive alternatives in terms of output quality. The so-called 'performance gap' may further widen, pushing customers to superior tools from rivals like OpenAI and Google. Since the company faces a difficult transition period, Sheikh believes 'the multiple deserves to contract further.' While we acknowledge the potential of ADBE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks in the Spotlight and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
