Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at SoFi Technologies, Mersana, Zions, and RPC, and initiation at MSCI.
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SoFi Technologies downgraded at three firms
SoFi Technologies (NASDAQ:SOFI) shares plunged more than 5% pre-market today after several Wall Street firms downgraded the company.
Piper Sandler adjusted its rating to Neutral from Overweight with a price target of $8.00 (from $6.50). According to the firm, some stock outperformance YTD would have been warranted, particularly if interest rates declined driving better margins and more attractive lending opportunities. However, rates actually moved higher in the past two months, which will be an incremental headwind in the near term, and Piper is increasingly concerned rates could remain higher for longer due to persistent inflation.
Meanwhile, BofA Securities downgraded the company to Neutral from Buy with a price target of $10.00 (from $9.50).
Yesterday, Oppenheimer also downgraded the company, moving its rating to Perform from Outperform.
Mersana downgraded following a partial clinical hold on UP-NEXT and UPGRADE-A
JPMorgan downgraded Mersana Therapeutics (NASDAQ:MRSN) to Neutral from Overweight and cut its price target to $5.00 from $11.00.
Shares plunged nearly 60% yesterday following a partial clinical hold on UP-NEXT and UPGRADE-A clinical trials.
JPMorgan said it was wrong to upgrade the company in March, adding that even with the assumption that UPLIFT readout by early August will be positive from an efficacy standpoint, the previous bullish thesis is not warranted given concerns on its eventual approvability in the U.S. and commercial attractiveness.
MSCI initiated with Underperform rating
BofA Securities initiated coverage on MSCI (NYSE:MSCI) with an Underperform rating and a price target of $470.00, as InvestingPro reported in real time.
The company is set to report its Q2/23 earnings next month. Street estimates stand at $3.11 for EPS and $602.87 million for revenues.
2 more downgrades
Janney downgraded Zions Bancorporation (NASDAQ:ZION) to Neutral from Buy. Earlier this week, the company said that NII is decreasing and Q2/23 net interest margin is trending toward 2.85%.
Citi downgraded RPC (NYSE:RES) to Sell from Neutral and cut its price target to $7.00 from $8.25. Shares fell more than 1% in pre-market today.
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