Today’s Most Important Downgrades by Investing

By Davit Kirakosyan

Shares of Microsoft experienced a decline of over 4% today following a downgrade by UBS, which changed its rating from Buy to Neutral and reduced its price target from $300 to $250. This adjustment was influenced by disappointing findings from field checks on cloud services, including Azure. Analysts expressed concerns that growth in Office subscriptions is likely to slow in 2023, suggesting that Microsoft’s valuation now appears fair rather than attractive.

ZoomInfo Technologies Inc. saw its shares drop more than 5% today after BofA Securities downgraded the stock from Buy to Neutral and adjusted the price target to $34 from $35. This decision is based on expectations of ongoing demand challenges that could impact the company’s revenue growth into 2023. Despite this, analysts highlighted the company’s robust customer engagement platform and potential for long-term market share gains.

Wells Fargo downgraded Target to Equal Weight from Overweight, lowering its price target from $170 to $142 due to uncertainties surrounding 2023. The analysts cited multiple reasons for this downgrade, including the likelihood of prolonged weakness in same-store sales for general merchandise, negative traffic trends in the fourth quarter, unclear prospects for margin recovery, and concerns regarding scalability similar to pre-COVID levels.

Honeywell International experienced a decline of nearly 2% after UBS downgraded the firm from Buy to Sell, reducing its price target from $220 to $193. This decision stems from a belief that the company is fully valued, in addition to anticipating a slowdown in orders and subsequent backlog reductions.

For those seeking timely market updates, consider subscribing to real-time financial news services.