Stock Analysts’ downgrades for Thursday, September 7th:
Ambarella (NASDAQ:AMBA) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Video compression and image processing semiconductors developer, Ambarella reported better-than-expected Q2 results. We remain encouraged by the company’s efforts toward expanding its reach in other markets, such as IP security, automotive, non-GoPro wearable and drones/flying cameras and simultaneously lower dependency on GoPro. However, the company’s disappointing guidance for the forthcoming quarter as well as downbeat revenue outlook for fiscal 2018 makes us increasingly cautious about its near-term prospect. The soft guidance provided by the company may be due to the number of challenges it has been facing. The company faces three main challenges, the risk of losing its largest customer, GoPro; weakness in the drone market and increasing threat from QUALCOMM, which is acquiring NXP Semiconductors to build its presence in the same space. Notably, the stock has underperformed the industry in the last one year.”
Deutsche Bank AG (NYSE:DB) was downgraded by analysts at Zacks Investment Research from a buy rating to a strong sell rating. According to Zacks, “Shares of Deutsche Bank on NYSE have underperformed the industry over the past year. The bank’s profitability remains threatened by a stressed operating environment and sluggish growth of the European economy. Also, margins continue to remain under pressure owing to low interest rates. Though the capital raising initiative will enable the banking giant to meet regulatory requirements, investment targets across core businesses, enhance its competitiveness and ease revenue growth challenges, Deutsche Bank’s expenses are likely to increase due to pending legal hassles.”
Dixons Carphone (OTC:DSITF) was downgraded by analysts at Royal Bank Of Canada from a top pick rating to an outperform rating.
Holcim (OTCMKTS:HCMLY) was downgraded by analysts at Barclays PLC from an overweight rating to an equal weight rating.
Hewlett Packard Enterprise (NYSE:HPE) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Hewlett Packard Enterprise offers technology solutions to business and public sector enterprises. Estimates have been moving down after the company reported third-quarter fiscal 2017 results. Although the top and bottom lines came ahead of the respective Zacks Consensus Estimate, the disappointing guidance for the next quarter undermines its near-term prospects. The company hinted that competitive pricing, heightened commodities pricing pressure and some dilution from M&A will dent its bottom-line performance. Furthermore, in our opinion, the company’s contrarian strategy may be in the right direction, but the turnaround is still far behind as we haven’t seen any materialistic improvement in its recently reported financial results. We also consider that the company is still struggling to determine its true business focus. The stock has underperformed the industry to which it belongs to in a year’s time.”
China Life Insurance Company Limited (NYSE:LFC) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Year to date, China Life’s shares have outperformed the industry. The company’s robust market position and organic growth initiatives are encouraging. Its operational efficiency is also reflected by its product upgrades and premium growth over the last many quarters. Its solid investment management also continues to impress. The company has the most extensive distribution and service network among all insurance companies operating in China. The stock has seen the Zacks Consensus Estimate for 2017 and 2018 earnings being revised upward over the last 30 days. However, it suffers from rising expenses that have been pushing the bottom line down over last few quarters. Its severe exposure to market risk also bothers.”
lululemon athletica inc. (NASDAQ:LULU) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Lululemon has surpassed the industry in the past three months, mainly driven by its focus on strategy for 2020, as part of which it aims to generate revenues of $4 billion. To achieve this, the company is committed toward product innovation, building store fleet in North America, expanding digital business and global expansion. All these factors helped Lululemon to post robust numbers in second-quarter fiscal 2017, even amid a tough retail landscape. Both sales and earnings topped estimates and grew year over year. While the bottom line marked its 2nd consecutive beat, the top line recorded its 7th straight quarter of positive surprise. Also, sturdy e-Commerce growth fueled comps. Apart from this, the company is on track with ivivva’s remodeling. The solid results and favorable third quarter trends encouraged management to raise its fiscal 2017 view. However, stiff competition and volatile consumer spending patterns may pose concerns.”
Southern National Bancorp of Virginia (NASDAQ:SONA) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Headquartered in Charlottesville Virginia, Sonabank is a new regional bank founded by an experienced banking team with close to hundred years of banking experience. They offer a full line of products and services for personal and business banking. Sonabank specializes in small to medium sized business banking. They have extensive experience in Small Business Administration loans as well as other types of financing suited for businesses. “
Ssab Svenskt (OTCMKTS:SSAAY) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “SSAB Svenskt Stal AB engages in the provision of steel and construction solutions. The company’s operating segment consists of SSAB Special Steels, SSAB Europe, SSAB Americas, Tibnor and Ruukki Construction. SSAB Special Steels segment provides marketing and sales of SSAB’s quenched and tempered steels. SSAB EMEA segment pertains to Europe, the Middle East and Africa. SSAB Americas segment refers to North and Latin America. SSAB APAC segment consists of Asia, Australia and New Zealand. Tibnor segment is the distribution of steel and metals. Ruukki Construction is engaged in the sales and production of energy-efficient building and construction solutions. It’s also operates in the Automotive, Construction Machinery, Material Handling and Heavy Transport segment. SSAB Svenskt Stal AB is headquartered in Stockholm, Sweden. “
Sterling Bancorp (NYSE:STL) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Sterling Bancorp is the holding company for Sterling National Bank, a financial services firm. Sterling National Bank provides various banking and financial products and services primarily in New York, New Jersey, and Connecticut. It provides depository and cash management services and a broad portfolio of financing solutions-including working capital lines, accounts receivable and inventory financing, factoring, trade financing, payroll funding and processing, equipment financing, commercial and residential mortgages and mortgage warehouse lines of credit. Sterling Bancorp, formerly known as Provident New York Bancorp, is headquartered in New York. “
STHREE (NASDAQ:STREF) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “SThree Plc is engaged in staffing businesses. It provides permanent and contract specialist staff to its client base. The company’s brand comprises Computer Futures, Progressive Recruitment, Huxley, Real Staffing Group, Newington International, JP Gray, Hyden and Orgtel. It operates primarily in Australia and Europe. SThree Plc is headquartered in London, United Kingdom. “
Mast Therapeutics (NASDAQ:SVRA) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Savara Inc. is a clinical-stage pharmaceutical company. It focused on the development and commercialization of novel therapies for the treatment of patients with rare respiratory diseases. Savara Inc., formerly known as Mast Therapeutics, Inc., is based in Austin, United States. “
Swedish Orphan Bio Spon (NASDAQ:SWTUY) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Swedish Orphan Biovitrum AB is a biopharmaceutical company which develops and makes drugs for patients with rare diseases. Its product portfolio primarily includes Kineret within the inflammation therapeutic area, Orfadin, Ammonaps and Ammonul within the genetics and metabolic therapeutic which are in clinical trial stage. Swedish Orphan Biovitrum AB is headquartered in Stockholm, Sweden. “
Del Taco Restaurants (NASDAQ:TACO) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Del Taco is the second largest Mexican-American QSR chain by units in the United States, serving more than three million guests each week. At Del Taco, menu items are made to order with fresh ingredients, including Cheddar cheese grated from 40-pound blocks, handmade pico de gallo salsa, lard-free beans slow-cooked from scratch, and marinated chicken grilled in the restaurant. The menu includes classic Mexican dishes such as tacos, burritos, quesadillas and nachos as well as American favorites including hamburgers, crinkle-cut fries and shakes. The company was founded on June 30, 2015 and is headquartered in Lake Forest, CA. “
Titan Machinery (NASDAQ:TITN) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Titan Machinery represents a diversified mix of agricultural, construction, and consumer products dealerships located in the upper Midwest. Their Shared Resource Headquarters is located in the heart of the Red River Valley in Fargo, ND. Titan Machinery is a dealer for Case IH, Case Construction, New Holland, and New Holland Construction. Titan Machinery also represents shortline equipment to meet specialized customer demand and niche product needs. “
