Today’s most important downgrades By Investing.com

By Davit Kirakosyan

Baird downgraded Caterpillar (NYSE:) to Neutral from Outperform and cut its price target to $230.00 from $290.00.

The firm argues that Caterpillar shares are “nearing a cyclical pivot point following strong recent outperformance,” hence it sees risk to valuation.

“History shows that CAT’s relative stock performance is driven by four fundamental factors: dealer stocking impact on sales growth, backlog progression, price/cost spread (which drives forward margin expectations), and dealer retail sales. We believe all four elements are likely to become headwinds for future stock performance,” said the firm.

Cowen downgraded Capri Holdings (NYSE:) to Market Perform from Outperform and cut its price target to $55.00 from $70.00 following the company’s reported and worse-than-expected guidance last week, which resulted in a share price drop of more than 23% on Wednesday.

“Watching Changes at Michael Kors. We have concerns as MK manages pressure in wholesale while simultaneously implementing a brand elevation strategy. We believe the brand needs to foster cultural relevance, drive differentiation through a customer data platform and manage outlet engagement,” said the firm.

Barclays downgraded ZIM Integrated Shipping Services Ltd (NYSE:) to Underweight from Equalweight and cut its price target to $15.00 from $26.50.

The firm expects the container shipping industry to enter a period of significant oversupply in 2023 and 2024, as it estimates capacity will grow by 10% p.a. while demand is tracking at -3% vs. 2019.

Shares plunged more than 6% today.

Williams Trading downgraded Dick’s Sporting Goods (NYSE:) to Hold from Buy with a price target of $132.00.

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