Research Analysts’ downgrades for Wednesday, February 1st:
American Airlines Group (NASDAQ:AAL) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Shares of American Airlines underperformed the broader market in the last three months. The company reported better-than-expected revenues but in-line earnings in the fourth quarter of 2016. Total revenue per available seat miles (TRASM) improved 1.3% in the reported quarter. This was the first quarter in which the metric grew on a year-over-year basis, since the fourth quarter of 2014. Further improvement in the metric is expected in the first quarter. Increasing labor costs are, however, expected to continue hurting the bottom line. Consolidated CASM (excluding fuel and special items) is projected to increase 9% in the first quarter of 2017. Nonetheless, we are impressed by the company's efforts to reward shareholders. The efforts to modernize its fleets are also encouraging.”
AudioCodes (NASDAQ:AUDC) was downgraded by analysts at Northland Securities from an outperform rating to a market perform rating.
Ball Corporation (NYSE:BLL) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Ball Corporation has underperformed the Zacks categorized sub industry over the past one year. The company's results coninue to bear the impact of continued weakness at the end-market level for carbonated soft drinks, beer and food. Ball Corporation also continues to face headwinds in its China business due to competitive pricing environment. Also, start-up costs for growth projects will remain headwinds for the company’s performance. Even though Ball Corporation’s Rexam acquisition will aid it to simplify and streamline its business, it will require meaningful integration efforts across a variety of geographies and business units, consequently carrying some integration risk.”
Hyster-Yale Materials Handling (NYSE:HY) was downgraded by analysts at Seaport Global Securities to a sell rating.
Praxair (NYSE:PX) was downgraded by analysts at Seaport Global Securities to a neutral rating.
Under Armour (NYSE:UA) was downgraded by analysts at B. Riley from a buy rating to a neutral rating. They currently have $22.00 target price on the stock, down from their previous target price of $41.00.
Under Armour (NYSE:UAA) was downgraded by analysts at Canaccord Genuity from a buy rating to a hold rating. They currently have $20.00 target price on the stock, down from their previous target price of $44.00.
Unisys Corporation (NYSE:UIS) was downgraded by analysts at Zacks Investment Research from a hold rating to a strong sell rating. According to Zacks, “Unisys reported mixed fourth-quarter 2016 results with significant decline in GAAP revenues and earnings although adjusted earnings beat the Zacks Consensus Estimate. The company has to continually invest in new technologies which act as value drivers to provide a hedge against stiff competition. These incremental investments increase operating expenses, thus squeezing margins and negatively impacting profitability. Pension liabilities have increased lately and are likely to be a drag on its earnings in the future. In addition, Unisys is exposed to foreign currency exchange rate risks, particularly in euro due to the Brexit referendum. However, Unisys is currently aligning its services and solution portfolio by shifting its offerings to cloud-based and software-as-a-service delivery model. The company remarkably outperformed the Zacks categorized Information Technology Service industry in the last 90 days with continued focus on organic growth.”
United States Cellular Corporation (NYSE:USM) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “U.S. Cellular continues to face numerous headwinds. Competitive and consolidated wireless market, high costs associated with network integration and construction of cell sites, aggressive pricing by larger rivals and fall in service revenues are some of the major dampeners. Inspite of such troubles, shares of U.S. Cellular have outperformed the Zacks-categorized ‘Wireless National' industry’s growth over the past three months. We are, also, impressed with U.S. Cellular’s strategic moves such as introduction of a new billing system, continuous rollout of 4G LTE, enhancement of LTE handsets, completion of various spectrum transactions and monetization of non-strategic assets. Moreover, the Shared Connect plans which offer more data, larger allotments and unlimited offerings also bode well.”
VEREIT (NYSE:VER) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “VEREIT, Inc. is a real estate operating company. The Company owns and manages a diversified portfolio of retail, restaurant, office and industrial real estate assets. VEREIT, Inc., formerly known as American Realty Capital Properties Inc., is based in Phoenix, United States. “
Wolseley plc (NASDAQ:WOSYY) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Wolseley is the world’s largest trade distributor of plumbing and heating products and a leading supplier of building materials. Wolseley operates in five geographic regions: the United States, Canada, the Nordic region, the United Kingdom and Central Europe and France. They supply customers in the new; repair, maintenance and improvement and civil infrastructure sectors. “
Xylem (NYSE:XYL) was downgraded by analysts at Gabelli from a buy rating to a hold rating.