Equities Research Analysts’ downgrades for Wednesday, August 30th:
Accenture PLC (NYSE:ACN) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Accenture is one of world’s leading providers of management consultancy, technology and outsourcing services. We are positive about Accenture’s latest product additions in the analytics application space, given the increasing demand for digital solutions. Moreover, Accenture’s strategy of growing through acquisitions encouraging. The acquisitions have enabled Accenture to enter new markets, diversify and broaden its product portfolio, and maintain its leading position. Notably, shares of the company outperformed the industry over the past year. Nonetheless, Accenture’s recent announcement of creating 15K new jobs by 2020 and investment plan of $1.4 billion for employee training and opening of 10 innovation centers across the U.S. cities may dent its bottom-line results in our opinion. Furthermore, increasing competition from peers and an uncertain macroeconomic environment may deter its growth to some extent.”
American Midstream Partners, (NYSE:AMID) was downgraded by analysts at BidaskClub from a sell rating to a strong sell rating.
Atento (NYSE:ATTO) was downgraded by analysts at BidaskClub from a strong-buy rating to a buy rating.
Big Lots (NYSE:BIG) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Big Lots’ second-quarter fiscal 2017 marked the seventh straight quarter of positive earnings surprise. Moreover, the top line also surpassed the Zacks Consensus Estimate after missing the same in the trailing four quarters on account of robust performance of furniture and soft home. Following the results, management raised fiscal 2017 earnings guidance but remained somewhat cautious about its sales and comparable store sales performance. Management’s conservative sales guidance has hurt investor sentiment as a result of which the stock has underperformed the industry in the past month. Sales growth for the full year is predicted to be in the range of 2-2.5%, compared with earlier guided range of 2-3%. Meanwhile, its furniture financing programs have been consistently gaining traction. However, the challenging retail landscape, aggressive promotional strategies and waning store traffic might weigh on the performance.”
Black Knight Financial Services (NYSE:BKFS) was downgraded by analysts at BidaskClub from a buy rating to a hold rating.
Cummins (NYSE:CMI) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Cummins earnings missed the Zacks Consensus Estimate, whereas revenues beat the same in second-quarter 2017. The company expects to witness a growing trend in its truck and construction products’ demand, along with growth in global mining customers, which will have a positive impact on its sales figure. Cummins has also provided an improved outlook for fiscal 2017. The company is also poised to benefit from its business expansions in China and acquisitions and partnerships in North America. Moreover, its shares have outperformed against the industry, year to date. However, challenging market conditions, currency fluctuations in comparison to the U.S. dollar and high warranty costs are few concerns for the company. Moreover, its dependence for parts on a single supplier might also lead to manufacturing problems.”
CubeSmart (NYSE:CUBE) was downgraded by analysts at Raymond James Financial, Inc. from an outperform rating to a hold rating.
EPAM Systems (NYSE:EPAM) was downgraded by analysts at BidaskClub from a hold rating to a sell rating.
Forest City Enterprises (NASDAQ:FCE-A) was downgraded by analysts at BidaskClub from a hold rating to a sell rating.
Foot Locker (NYSE:FL) was downgraded by analysts at Zacks Investment Research from a hold rating to a strong sell rating. According to Zacks, “Foot Locker, which has underperformed the industry in the past one month, has been witnessing a downtrend in estimates. This is due to dismal performance for the second straight quarter in fiscal 2017 and a bleak outlook. The company’s results in the second quarter were impacted by soft performance of “some recent top styles” and lack of innovative fresh products in the market. Challenging retail landscape and changing consumer spending pattern are making operating environment tough. Management now expects comparable sales to decline in the range of 3–4% in remaining part of 2017 with earnings per share projected to decrease in the band of 20–30% during the second half. Margins are also expected to remain pressured going forward. Nevertheless, we believe that building robust capabilities in direct-to-customer unit, rationalizing store fleet and improving supply chain infrastructure may provide cushion to the stock.”
Honeywell International (NYSE:HON) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Honeywell’s diversified business portfolio has the potential to earn consistent above-average returns and mitigate operating risks through a balanced organic and inorganic model. A diligent focus on working capital management, free cash flow generation and a conservative balance sheet remain key positives. With a flexible yet disciplined focus on cost and productivity, Honeywell remains focused on increasing its presence in high-growth regions. The company also outperformed the industry year to date. However, adverse foreign currency translations, high R&D expenses to fend off competition and volatility in commodity prices are likely to peg back its growth momentum to some extent. In addition, Honeywell is yet to witness signs of stabilization in some of its major end markets and expects a tepid demand pattern for its business jets and mobile scanners in 2017.”
IDACORP (NYSE:IDA) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Shares of IDACORP have returned more than the industry in the last 12 months. IDACORP's second quarter 2017 earnings missed the Zacks Consensus Estimate primarily due to soft irrigation sales. IDACORP continues to gain from improving economic conditions in service territories, which, in turn, is increasing the demand for utility services. The utility has plans to invest nearly $1.5 billion over 2017-2021 for transmission and plant expansion projects, which will allow the company to provide efficient services to expanding customer base. However, the company operates under stringent regulatory environment and operation of its hydro-electric power generation units require licenses and the permitting process could involve a number of stringent conditions which may lead to significant capital expenditures. Currently, the valuation of the company appears to be stretched on a P/E multiple basis.”
MFA Financial (NYSE:MFA) was downgraded by analysts at BidaskClub from a strong-buy rating to a buy rating.
Otonomy (NASDAQ:OTIC) was downgraded by analysts at J P Morgan Chase & Co from an overweight rating to a neutral rating.
Bankrate (NYSE:RATE) was downgraded by analysts at BidaskClub from a strong-buy rating to a buy rating.
Tower International (NYSE:TOWR) was downgraded by analysts at BidaskClub from a hold rating to a sell rating.
Trivago N.V. ADS (NASDAQ:TRVG) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “trivago N.V. is a technology company. It provides internet-related services and products in the fields of hotels, lodging and metasearch. trivago N.V. is based in Duesseldorf, Germany. “
Tetraphase Pharmaceuticals (NASDAQ:TTPH) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Tetraphase Pharmaceuticals, Inc. is a life science company engaged in developing and commercializing tetracycline based drugs to treat drug-resistant infectious diseases, inflammation, and cancer. Its principal products include eravacycline, an intravenous and oral antibiotic for the treatment of multi-drug resistant Gram-negative infections. The Company’s product under development includes eravacycline oral formulation, TP-834 and TP-271. Tetraphase Pharmaceuticals, Inc. is based in Watertown, Massachusetts. “
UFP Technologies (NASDAQ:UFPT) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “UFP TECH., INC. designs and manufactures a range of high-performance cushion packaging and specialty foam and plastic prods. for the industrial and consumer markets. UFP also designs precision moulded fibre packaging prods. made from recycled paper. “
Vista Gold Corp. (NYSEMKT:VGZ) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Vista Gold Corp. is a mining company which produces gold from its Crofoot/Lewis mine in Nevada and explores for precious metals in the United Stattes, Canada, Mexico, Bolivia, Vanezuela and Ecuador. “
Vipshop Holdings Limited (NYSE:VIPS) was downgraded by analysts at BidaskClub from a sell rating to a strong sell rating.
YY (NASDAQ:YY) was downgraded by analysts at BidaskClub from a strong-buy rating to a buy rating.
Zhaopin Limited (NYSE:ZPIN) was downgraded by analysts at BidaskClub from a hold rating to a sell rating.
