Morgan Stanley has downgraded Salesforce from Overweight to Equalweight, citing limited near-term catalysts and margin expansion concerns. The bank acknowledged the company’s potential to penetrate large enterprises but believes that the positive factors have already been priced in. The bank also noted that Generative AI could be a future catalyst for a higher rating, but this is unlikely to happen in the short term due to limited access to potential growth drivers. Salesforce is set to announce its Q2/24 earnings on August 23.
Estée Lauder’s shares dipped by more than 1.5% after Citi downgraded the company from Buy to Neutral and adjusted its price target. Citi expressed concerns about the recovery path for Estée Lauder’s Asian Travel Retail business over the next 6-12 months, citing negative incremental data points such as China macros and cybersecurity incident. Although Citi remains optimistic about the company’s long-term opportunities, they expect weaker results in the near future.
Tractor Supply faced a downgrade from Barclays, with the bank lowering its rating to Equalweight from Overweight and reducing its price target based on disappointing Q2 results. The downgrade reflects concerns about the company’s growth prospects and uncertainties regarding its future performance.
General Electric (GE) was downgraded by Oppenheimer from Outperform to Perform due to valuation concerns. The stock has seen a remarkable rally of over 35% since Oppenheimer first upgraded it in December. Despite GE’s better than expected Q2 results and raised full-year outlook, Oppenheimer believes that the stock’s current valuation does not warrant an Outperform rating.
Overall, the downgrades of Salesforce, Estée Lauder, Tractor Supply, and General Electric reflect concerns about various aspects of these companies’ operations and potential challenges they may face in the short and long term. It’s imperative for investors to consider these downgrades and assess the implications for their portfolios.
Please note that this news article has been generated by OpenAI and contains information and opinions provided by various sources. It is important to conduct further research and consult with a qualified financial advisor before making any investment decisions based on this article.
