Loads of analysts cut their price targets on these 10 stocks ahead of earnings
Analysts have lowered their expectations on several global stocks this week by cutting their price targets. The list of stocks includes auto stocks Tesla , Rivian and Aptiv , pharmaceutical firms Biogen and Novartis , energy companies EQT Corp and TotalEnergies , airline Deutsche Lufthansa and aerospace firm Boeing , and fast food giant McDonald’s . The price target changes come ahead of the next earnings season covering the first quarter of this year. CNBC Pro screened for global stocks in the MSCI World index that have received price target downgrades over the past seven days and are yet to report earnings. Tesla Wall Street analysts from 15 firms downgraded their 12-month price targets for Tesla over the past week. Shares of the electric vehicle maker dropped 8% this week, falling to their lowest since April of last year on fears of a global slowdown in electric vehicle sales. CEO Elon Musk said the company is eliminating more than 10% of its global workforce to cut costs. Barclays, for instance, cut its price target to $180 from $225 , citing the potential for a drop after the company’s earnings report, which is expected next week on Apr. 24. “Tesla’s deeply challenged near-term fundamentals are taking the backseat to a much larger issue, as Tesla is facing an investment thesis pivot,” Barclays wrote in a Wednesday note. “We expect the 1Q print to be a negative catalyst for Tesla stock for several reasons.” TSLA 1Y line Lufthansa The German airline revealed earlier this week that it expects to incur at least 350 million euros ($372 million) in losses over strike action in the first quarter. Earlier this year, both ground staff and cabin crew took industrial action. A pay raise agreed with the unions has resolved the disputes. However, profit estimates have been trimmed due to the flight cancellations and work stoppages. Analysts at Stifel Nicholas, for instance, lowered their price target to 11 euros per share from 13 euros but are still bullish on the stock. “We note that the root cause of the profit warning (i.e., the labour disputes) has now been solved. In fact, all major German labour groups (pilots, cabin, ground) have settled their wage disputes with 2-3 years duration, eliminating major strike risks for the foreseeable future (albeit some smaller labour disputes remain: AUA, Discovery, Cityline),” said Stifel analysts Johannes Braun and Marc Zeck in a note to clients on Apr. 17. LHA-DE 1Y line — CNBC’s Samantha Subin and Michael Bloom contributed reporting.
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