Investment Analysts’ Downgrades for June 7th (AJG, BAH, BCH, BFFBF, BSAC, DAC, DASTY, DIS, EAF, FANG)

Investment Analysts’ downgrades for Tuesday, June 7th:

Arthur J. Gallagher & Co. (NYSE:AJG) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. Zacks Investment Research currently has $171.00 target price on the stock. According to Zacks, “Shares of Arthur J. Gallagher have outperformed its industry in a year. The company is likely to continue benefiting from solid organic growth, which have been driving revenues. Sturdy performance across its Brokerage and Risk Management segments also bode well. The company expects organic revenues in Risk Management and Brokerage segment to be better than 2021 level. Its focus on tapping opportunities across the globe bodes well for growth. Its inorganic growth story seems impressive with strategic buyouts. Its solid performance is driving cash flow and helping it to deploy capital in shareholder-friendly moves. However, escalating expenses weigh on the company’s margin expansion. Also, high debt level induces higher interest expenses and low times interest earned concerns. Lower return on equity poses financial risk for the company.”

Booz Allen Hamilton (NYSE:BAH) was downgraded by analysts at Barclays PLC from an overweight rating to an equal weight rating. Barclays PLC currently has $95.00 price target on the stock.

Banco de Chile (NYSE:BCH) was downgraded by analysts at Itau BBA Securities from an outperform rating to a market perform rating. Itau BBA Securities currently has $22.00 target price on the stock.

Banco de Chile (NYSE:BCH) was downgraded by analysts at Itaú Unibanco Holding S.A. from an outperform rating to a market perform rating. Itaú Unibanco Holding S.A. currently has $22.00 target price on the stock.

Biffa (OTCMKTS:BFFBF) was downgraded by analysts at Peel Hunt to a buy rating.

Banco Santander-Chile (NYSE:BSAC) was downgraded by analysts at Itau BBA Securities from an outperform rating to a market perform rating. The firm currently has $22.00 price target on the stock.

Banco Santander-Chile (NYSE:BSAC) was downgraded by analysts at Itaú Unibanco Holding S.A. from an outperform rating to a market perform rating. Itaú Unibanco Holding S.A. currently has $22.00 price target on the stock.

Danaos (NYSE:DAC) was downgraded by analysts at StockNews.com from a buy rating to a hold rating.

Dassault Systèmes (OTCMKTS:DASTY) was downgraded by analysts at Jefferies Financial Group Inc. from a hold rating to an underperform rating.

Walt Disney (NYSE:DIS) was downgraded by analysts at Zacks Investment Research from a hold rating to a strong sell rating. They currently have $92.00 price target on the stock. According to Zacks, “Disney shares have underperformed the industry year to date. Disney+’s profitability is expected to be negatively impacted by higher investments in content, which will drive up programming and production costs at Media and Entertainment Distribution. Closure of its Asian theme park due to COVID-19 doesn’t bode well for the Parks, Experiences and Products top-line growth. Disney expects this to reduce operating income by up to $350 million in the fiscal third quarter. Disney’s leveraged balance sheet is a concern. Nevertheless, the company benefits from the growing popularity of Disney+, owing to a strong content portfolio and a cheaper bundle offering. Availability in the Nordics, Latin America and other Asian territories is helping it in expanding user base. Revival in Parks business also hold promise in the long haul.”

GrafTech International (NYSE:EAF) was downgraded by analysts at Citigroup Inc. from a buy rating to a neutral rating. They currently have $10.00 price target on the stock, down from their previous price target of $13.00.

Diamondback Energy (NASDAQ:FANG) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. They currently have $165.00 target price on the stock. According to Zacks, “Diamondback Energy shares have outperformed the Zacks Oil & Gas U.S. Exploration & Production industry over the past year (+94.2% versus +92.7%). It focuses on growth through a combination of acquisitions and active drilling in the lucrative Permian Basin. Over the years, Diamondback's buyouts of Energen, Ajax and QEP, totalling more than $12 billion, have strengthened its Permian position and growth prospects along with offering the firm with synergy benefits. The company’s substantial ownership interest in infrastructure spin-off Rattler Midstream provides it with a steady and growing revenue stream. However, Diamondback’s high leverage restricts its financial flexibility, while the volatility associated with oil price is a constant threat. Consequently, investors are advised to wait for a better entry point.”

Flowserve (NYSE:FLS) was downgraded by analysts at Zacks Investment Research from a hold rating to a strong sell rating. Zacks Investment Research currently has $27.00 target price on the stock. According to Zacks, “Flowserve’s first-quarter 2022 earnings and revenues missed the Zacks Consensus Estimate by 66.7% and 4.5%, respectively. In the past three months, the company’s shares have underperformed the industry. It has been experiencing supply-chain challenges, logistics problems and labor issues. High debt levels can be detrimental as well. The company’s realignment expenses and international exposure might be concerning. For 2022, tax rate is expected to be 20-22%, indicating an increase from 16.6% in 2021. Also, risks related to international operations might create headwinds. However, the company is poised to benefit from higher bookings, a strong backlog level and its realignment program in the quarters ahead. Its policy of rewarding shareholders handsomely will likely work in its favor. The company’s cost-saving measures are likely to be beneficial.”

First Mid Bancshares (NASDAQ:FMBH) was downgraded by analysts at StockNews.com from a buy rating to a hold rating.

Hess (NYSE:HES) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. The firm currently has $134.00 price target on the stock. According to Zacks, “Hess is a leading global integrated energy company. It has made multiple world-class oil discoveries at the Stabroek block, off the coast of Guyana. Hess recently announced three discoveries in the Stabroek block, thereby increasing the block’s gross discovered recoverable resource estimate from 10 billion Boe to 11 billion Boe. The company anticipates multi-billions of exploration potential to be still left in Guyana. In the Bakken Play, Hess plans to operate a three-rig program, which will enable it to generate significant free cash flows. However, the company’s massive exposure to debt can affect its financial flexibility. Rising costs and expenses will affect the bottom line. Also, Hess has been persistently generating lower dividend yields than the market over the past few years. As such, the stock warrants a cautious stance.”

Jerónimo Martins, SGPS (OTCMKTS:JRONY) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Jeronimo Martins SGPS SA is engaged in the distribution and production of food items and fast moving consumer goods through its retail and wholesale operations in Portugal and Poland. The Company carries its operations through its distribution, manufacturing and service segments. It operates mini-hyper and hypermarkets, supermarkets and cash and carry outlets, food service platforms and also manufactures margarines, soups, savory products, ice tea and cooking oils. The Company also represents and caterers products ranging from cosmetics to chocolates, ice-creams and confectionaries. It is also engaged in the development of a chain of coffee kiosks and restaurants. Jeronimo Martins SGPS SA is headquartered in Lisbon, Portugal. “

Leidos (NYSE:LDOS) was downgraded by analysts at Barclays PLC from an overweight rating to an equal weight rating. The firm currently has $105.00 target price on the stock.

Lincoln National (NYSE:LNC) was downgraded by analysts at Zacks Investment Research from a hold rating to a strong sell rating. The firm currently has $48.00 price target on the stock. According to Zacks, “Lincoln National’s declining cash balance is a woe. The stock carries a high leverage ratio. The company must service its debt continuously, or else its creditworthiness could be dented. Investors should remain cautious regarding its cash flow generating abilities. Also, new variants of COVID might cause a spike in claims, which can affect the company’s margins. Shares of Lincoln National have underperformed the industry in a year. The stock has seen the Zacks Consensus Estimate for 2022 earnings being revised south by 3.2% in the past 30 days. However, numerous product introductions and enhancements of the existing products will drive revenues at Lincoln National. Changes made to emphasize the sale of products without long-term guarantees are expected to improve the profitability of its Life Insurance segment.”

MamaMancini’s (OTCMKTS:MMMB) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “MamaMancini’s Holding’s, Inc. is involved in manufacturing & distributing of food products primarily in the United States. It offers beef meatballs with sauce, turkey meatballs with sauce, chicken meatballs with sauce, pork meatballs with sauce and other similar Italian products. The company sells its products to supermarket and mass market retailers. MamaMancini’s Holding’s, Inc. is based in East Rutherford, New Jersey. “

Marathon Oil (NYSE:MRO) was downgraded by analysts at Zacks Investment Research from a strong-buy rating to a hold rating. The firm currently has $38.00 price target on the stock. According to Zacks, “Marathon Oil shares have outperformed the Zacks Oil & Gas U.S. Exploration & Production industry over the past year (+131.1% versus +73.4%) and still have plenty of upside potential. Marathon’s robust operational metrics suggest strong long-term cash flows that should support further price appreciation. The wells drilled by Marathon have extremely low breakeven costs and need oil prices of just $35 a barrel to be profitable. Despite pivoting towards a flat production profile this year, we expect revenue to rise around 39% due to the favorable industry trends. Our EPS projection indicates a 151.3% improvement this year. Further, Marathon’s major debt maturities mostly fall after 2025, eliminating any possible risks on this front in the near term. Therefore, we maintain our Outperform recommendation on the upstream energy firm.”

MSA Safety (NYSE:MSA) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “MSA Safety Inc. is engaged in the development, manufacture and supply of safety products that protect people and facility infrastructures. The company’s core product lines include self-contained breathing apparatus, fixed gas and flame detection systems, handheld gas detection instruments, industrial and fire service head protection products and fall protection devices. It serves a broad range of industries, including the oil, gas and petrochemical industry, the fire service, construction, mining and general industry. MSA Safety Inc., formerly known as Mine Safety Appliances Company, is headquartered in Cranberry Township, Pennsylvania. “

Nordic American Tankers (NYSE:NAT) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Nordic American Tankers operates one of the largest fleets of Suezmax tankers in the world. The fleet consists of 24 Suezmax tankers, including 2 newbuilds. “

NRG Energy (NYSE:NRG) was downgraded by analysts at Bank of America Co. from a neutral rating to an underperform rating. Bank of America Co. currently has $42.00 target price on the stock, down from their previous target price of $43.00.

Nihon Unisys (OTC:NTULF) was downgraded by analysts at The Goldman Sachs Group, Inc. from a conviction-buy rating to a buy rating.

NexPoint Residential Trust (NYSE:NXRT) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “NexPoint Residential Trust, Inc. is engaged in acquiring, owning, operating and selectively developing multifamily properties. It operates primarily in the Southeastern United States and Texas. NexPoint Residential Trust, Inc. is based in Dallas, United States. “

Office Properties Income Trust (NASDAQ:OPI) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Office Properties Income Trust is a real estate investment trust. It owns buildings primarily leased to single tenants as well as government entities. Office Properties Income Trust, formerly known as Government Properties Income Trust, is based in Newton, United States. “

Occidental Petroleum (NYSE:OXY) was downgraded by analysts at Zacks Investment Research from a strong-buy rating to a hold rating. They currently have $73.00 price target on the stock. According to Zacks, “Occidental Petroleum continues to increase hydro-carbn production from its high-quality asset holdings and lower its outstanding debts through proceeds from non-core assets sale. The acquisition of Anadarko, investment in infrastructure and its Permian Basin exposure continue to boost performance. The company has achieved its $10-billion divestiture goal through non-core assets sale. OXY’s cost-management initiatives will boost margins. OXY rewards shareholders through share buybacks and dividend payment. Shares of Occidental have outperformed the industry in the past six months. However, the company faces the risk of cost overruns and interruptions due to delays in drilling and approvals. Its high debt level and compliance of stringent rules of the government can increase costs. Also, the competitive nature of the industry remains a headwind.”

PagSeguro Digital (NYSE:PAGS) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “PagSeguro Digital Ltd. provides financial technology solutions and services for micro-merchants and small and medium-sized businesses primarily in Brazil and internationally. The Company offers multiple digital payment solutions, in-person payments via point of sales devices and prepaid cards services. PagSeguro Digital Ltd. is headquartered in Sao Paulo, Brazil. “

Praxis Precision Medicines (NASDAQ:PRAX) was downgraded by analysts at Bank of America Co. from a buy rating to a neutral rating. Bank of America Co. currently has $4.00 target price on the stock.

Pioneer Natural Resources (NYSE:PXD) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. Zacks Investment Research currently has $295.00 price target on the stock. According to Zacks, “Pioneer Natural’s divestment of its Delaware Basin assets has established itself as the only large-cap exploration and production pure play in the Midland Basin. For 2022, the company projects total production at 623-648 MBoe/d, marking an increase from 617.3 MBoe/d reported last year. Coupled with higher oil prices, increased production will boost its bottom line. For the second quarter, the company announced a dividend payment of $7.38 per share of common stock, suggesting a 95.2% hike. Also, its debt to capitalization has been persistently lower than the industry over the past few years. However, PXD has been bearing the brunt of increasing costs for the past few quarters. Also, the upstream energy player realized hedging losses of $135 million in the first quarter amid rising oil prices. As such, the stock warrants a cautious stance.”

Ribbon Communications (NASDAQ:RBBN) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Ribbon Communications Inc. develops communication software. It provides session border controllers, diameter signals, policy and routing servers, media and signaling gateways, cloud and mobility solutions. Ribbon Communications Inc., formerly known as Sonus Networks Inc., is headquartered in Westford, Massachusetts. “

Skillsoft (NASDAQ:SKIL) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Skillsoft Corp. delivers digital learning, training and talent solutions. The company democratizes learning through an intelligent learning experience and a customized, learner-centric approach to skills development with resources for Leadership Development, Business Skills, Technology and Developer, Digital Transformation and Compliance. Skillsoft Corp., formerly known as Churchill Capital Corp II, is based in NEW YORK. “

SELLAS Life Sciences Group (NASDAQ:SLS) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “SELLAS Life Sciences Group is a development-stage biopharmaceutical company. It focused on novel cancer immunotherapeutics for cancer indications. The company’s product candidate, galinpepimut-S, is licensed from Memorial Sloan Kettering Cancer Center and targets the Wilms Tumor 1 protein, which is present in an array of tumor types. SELLAS Life Sciences Group Inc., formerly known as Galena Biopharma Inc., is based in NEW YORK, United States. “

SOPHiA GENETICS (NASDAQ:SOPH) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “SOPHiA GENETICS SA is a healthcare technology company dedicated to establishing the practice of data-driven medicine as the standard of care and for life sciences research. It is the creator of the SOPHiA DDM(TM) Platform, a cloud-based SaaS platform capable of analyzing data and generating insights from complex multimodal data sets and different diagnostic modalities. SOPHiA GENETICS SA is based in BOSTON. “

South32 (OTCMKTS:SOUHY) was downgraded by analysts at Zacks Investment Research from a hold rating to a strong sell rating. According to Zacks, “South32 Limited is a resources company. The Company primarily produces alumina, aluminium, coal, manganese, nickel, silver, lead and zinc. South32 Limited is based in Perth, Australia. “

S&P Global (NYSE:SPGI) was downgraded by analysts at Zacks Investment Research from a hold rating to a strong sell rating. Zacks Investment Research currently has $285.00 price target on the stock. According to Zacks, “S&P Global remains vulnerable to proceedings, investigations and inquiries with respect to the ratings provided, leading to legal charges, damages or fines. Growth initiatives, higher compensations and incentives raise the company's expenses. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.Partly due to these headwinds, the stock has declined in the past year. However, S&P Global remains well poised to gain from growing demand for business information services. Buyouts help innovate, increase differentiated content and develop new products. Effective management execution has helped it generate solid cash flow which is utilized for growth initiatives. Dividend payments and share buybacks boost investors confidence and positively impact earnings per share.”

Suntec Real Estate Investment Trust (OTCMKTS:SURVF) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Suntec Real Estate Investment Trust invests primarily in retail and office purposes. Suntec Real Estate Investment Trust is based in Singapore. “

Synalloy (NASDAQ:SYNL) was downgraded by analysts at StockNews.com from a strong-buy rating to a buy rating.

TELUS International (Cda) (NYSE:TIXT) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “TELUS International designs, builds and delivers next-generation digital solutions for global and disruptive brands. The company provides integrated solutions and capabilities span digital strategy, innovation, consulting and design, digital transformation and IT lifecycle solutions, data annotation and intelligent automation, and omnichannel CX solutions which include content moderation, trust and safety solutions and other managed solutions. TELUS International is based in VANCOUVER, British Columbia. “

Trend Micro (OTCMKTS:TMICY) was downgraded by analysts at The Goldman Sachs Group, Inc. from a buy rating to a neutral rating.

TherapeuticsMD (NASDAQ:TXMD) was downgraded by analysts at HC Wainwright from a buy rating to a neutral rating.

Usinas Siderúrgicas de Minas Gerais (OTCMKTS:USNZY) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “The USIMINAS SYSTEMS is Latin America’s biggest flat steel complex and it ranks among the world’s largest twenty steel producers. Usiminas is the System’s leader company, a conglomerate made up of companies that operate in the steel industry and businesses in which steel plays a strategic role. With a solid organizational culture and deeply committed to the stockholders and the society, the company is in a constant search for operating excellence, long-term vision and corporate responsibility. Presently, Usiminas leads a pool of companies and it has a strong focus on transparency in its relations with the capital market. “

Minerva Surgical (NASDAQ:UTRS) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Minerva Surgical is a commercial-stage medical technology company focused on developing, manufacturing and commercializing minimally invasive solutions to meet the distinct uterine healthcare needs of women. Minerva Surgical is based in SANTA CLARA, Calif. “

Vacasa (NASDAQ:VCSA) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Vacasa provides vacation rental management platform principally in North America. Vacasa, formerly known as TPG Pace Solutions Corp., is based in PORTLAND, Ore. “

Valens Semiconductor (NYSE:VLN) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Valens Semiconductor Ltd. is a provider of connectivity solutions for the audio-video and automotive markets. Valens Semiconductor Ltd., formerly known as PTK Acquisition Corp., is based in HOD HASHARON, Israel. “

Ventyx Biosciences (NASDAQ:VTYX) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Ventyx Biosciences Inc. is a clinical-stage biopharmaceutical company. It focused on advancing new therapies for patients living with inflammatory diseases and autoimmune disorders. The company’s clinical stage pipeline includes VTX958, VTX002 and VTX2735. Ventyx Biosciences Inc. is headquartered in Encinitas, California. “

Williams Companies (NYSE:WMB) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. Zacks Investment Research currently has $40.00 price target on the stock. According to Zacks, “With U.S. natural gas demand projected to grow significantly in the long term, The Williams Companies seems to be well positioned to capitalize on the same owing to its impressive portfolio of large-scale value creating projects. The firm’s attractive exposure to the nation's natural gas supply growth also bodes well for the energy infrastructure provider. Williams’ thriving deepwater transportation business and its attractive dividend yield are other positives. However, the company's high leverage metrics restricts its financial flexibility. The closure of the Constitution Pipeline project is also a cause of concern. Further, exposure to volume-driven nonregulated business can limit the company’s earnings. Consequently, the energy infrastructure warrants a cautious stance from investors for the time being.”

Wal-Mart de México (OTCMKTS:WMMVY) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “WAL-MART de Mexico-ADR operates 587 commercial units, including self-service stores, department, and restaurants. “

WestRock (NYSE:WRK) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. They currently have $52.00 price target on the stock. According to Zacks, “WestRock’s earnings estimates for the third-quarter fiscal 2022 have been stable of late. The company expects adjusted earnings per share (EPS) to be between $1.36 and $1.54 in the third quarter of fiscal 2022. The mid-point of the guidance indicates a 24% sequential increase as pricing increases will help offset higher costs. WestRock's top-line performance will be supported by the ongoing solid demand for corrugated packaging, containerboard, food and beverage consumer packaging and industrial packaging. Pricing actions and productivity initiatives undertaken by the company are expected to offset higher costs and the ongoing supply chain challenges. Higher freight, wage and chemicals costs will continue to impact the company's margins in fiscal 2022. Labor shortages and supply chian challenges might impact WestRock's production.”

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