3 Stocks Dinged With Downgrades

Both AKAM and GMED fell to 12-month lows earlier today

Managing Editor
Jan 2, 2019 at 2:12 PM
facebook X logo linkedin


On the first trading day of 2019, stocks pared their sharp losses and turned higher at midday. Lumber manufacturer Louisiana-Pacific Corporation (NYSE:LPX), cloud concern Akamai Technologies, Inc. (NASDAQ:AKAM), and medical device maker Globus Medical Inc. (NASDAQ:GMED) are all lower on negative analyst attention. Below, we'll take a look at the news on shares of LPX, AKAM, and GMED.

Analyst: Macro Concerns for Louisiana-Pacific Stock

LPX shares were last seen down 5% at $21.10, after receiving a downgrade from BofA-Merrill Lynch to "neutral" from "buy," as well as a price-target cut to $24 from $29. The analyst in coverage urged caution due to U.S.-China trade tensions, as well as the typical sector slowdown around this time of year.

LPX stock earlier traded as low as $20.71, dangerously close to its Dec. 21 12-month low of $20.39. A drop today would snap a four-day winning streak, with the shares' 50-day moving average once more serving as stiff resistance, as it did back in late November/early December. 

As for broader sentiment on the lumber stock, three of five analysts still maintain "strong buy" ratings, and its consensus 12-month price target of $30.11 is a 42.5% premium to its current perch. Additional downgrades or price-target cuts could send LPX even lower.

Cowen Downgrade Sends AKAM to New Lows

Cowen downgraded Akamai Technologies stock to "market perform" from "outperform," while cutting its price target to $73 from $86, citing concerns over the company's revenue growth. At last check, AKAM was down 2.8% to trade at $59.36, and earlier fell to a new 12-month low of $57.53. The cloud stock is fresh off its worst month since May 2017, and has shed nearly 10% year-over-year.

Like Louisiana-Pacific, the analyst community remains mostly bullish. Of the 13 brokerages covering AKAM, eight rate it a "strong buy," with zero "sells" on the books. The stock's consensus 12-month price target, meanwhile, sits up at $83.33, just above its June 21 18-year high of $83.08. 

Morgan Stanley Note Exacerbates GMED Skid

Globus Medical stock is down 7.4% at $40.07, and earlier hit a 12-month low of $39.87. Fueling the drop is a downgrade to "equal weight" from "overweight" at Morgan Stanley, which also trimmed its price target to $49 from $64. GMED nabbed a record high of $57.83 as recently as Nov. 8, but since then has shed 30%, guided lower by its descending 10-day moving average.

For Globus Medical, analysts are much more evenly split. Nearly half rate GMED a "buy" or better. However, its consensus 12-month price target of $59.45 is a 48% premium to its current perch.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI