Equities Research Analysts’ Downgrades for May 2nd (ASB, CBU, CCA, CGEAF, CL, DKS, HENKY, JLL, KEY, NI)

Equities Research Analysts’ downgrades for Monday, May 2nd:

Associated Banc (NYSE:ASB) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. The firm currently has $21.00 target price on the stock. According to Zacks, “Associated Banc-Corp’s shares have outperformed the industry over the past year. The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters. Its first-quarter 2022 results were aided by higher net interest income (NII). The company's strategic plan will expand its lending capabilities, support core business growth and help transform digital competencies. Robust loan growth, efforts to focus on fee income and inorganic expansion efforts will support financials. Its solid balance sheet and efforts to improve operating efficiency are commendable. However, despite the rate hike expectations, relatively lower rates might weigh on margins in the near term. Elevated costs will likely hurt profits. The company’s loan exposure to sectors that are hit hardest by the COVID-19 mayhem is another woe.”

Community Bank System (NYSE:CBU) was downgraded by analysts at Piper Sandler from a neutral rating to an underweight rating. The firm currently has $66.00 target price on the stock, down from their previous target price of $74.00.

Cogeco Communications (TSE:CCA) was downgraded by analysts at TD Securities to a hold rating. The firm currently has C$120.00 target price on the stock.

Cogeco Communications (OTCMKTS:CGEAF) was downgraded by analysts at TD Securities from a buy rating to a hold rating.

Colgate-Palmolive (NYSE:CL) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. The firm currently has $82.00 price target on the stock. According to Zacks, “Shares of Colgate have lagged the industry in the past three months, thanks to the impacts of higher raw material and logistics costs worldwide. It reported earnings per share decline in first-quarter 2022, despite sales growth. Each of the company’s segments incurred significantly higher raw and packaging material costs in the first quarter. Also, it incurred higher logistics costs owing to volume and capacity constraints in the shipping and logistics industry, higher e-commerce demand, and the impact of the Ukraine war. This impacted the company’s gross and operating margins. Moreover, the company’s EPS guidance for 2022 failed to impress. However, the company reported top line growth backed by increased pricing across all regions. The company’s sales also benefited from investments in innovation and digital capabilities.”

DICK’S Sporting Goods (NYSE:DKS) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. Zacks Investment Research currently has $108.00 target price on the stock. According to Zacks, “Shares of DICK’S Sporting have outpaced the industry in a year. The stock’s bullish run on the bourses can be attributable to the robust surprise trend, which continued in fourth-quarter fiscal 2021. Both the top and bottom lines surpassed the Zacks Consensus Estimate and also improved year over year. This marked the seventh straight quarter of earnings and sales beat. The results gained from customer demand and improved product assortment, leading to strong sales and improved merchandise margin. The bottom line gained from the gross margin rate expansion and lower SG&A costs. Its store expansion initiatives and solid online show bode well. However, it has been witnessing higher freight costs and supply-chain issues. As a result, management issued a dismal fiscal 2022 view. Inflation and surging oil prices also remain concerning.”

Henkel AG & Co. KGaA (OTCMKTS:HENKY) was downgraded by analysts at Deutsche Bank Aktiengesellschaft from a buy rating to a hold rating.

Jones Lang LaSalle (NYSE:JLL) was downgraded by analysts at Zacks Investment Research from a strong-buy rating to a hold rating. The firm currently has $230.00 price target on the stock. According to Zacks, “Shares of Jones Lang LaSalle, popularly known as JLL, have outperformed the industry in the past year. Strength in the Leasing and Capital markets as well as valuation increases in its strategic technological investments are expected to keep supporting the company's financials. Its wide range of products and services and a spate of strategic investment activities to capitalize on market consolidations augur well for long-term growth. Its superior operating platform and market share expansion are likely to help achieve strong growth and generate decent cash flows. However, stiff competition from major regional and local industry players is a major concern. Also, the rising geopolitical tension makes us apprehensive. The recent earnings estimate revision trend for 2022 indicates an unfavorable outlook for the company, with estimates moving south.”

KeyCorp (NYSE:KEY) was downgraded by analysts at Piper Sandler from a neutral rating to an underweight rating. Piper Sandler currently has $20.50 price target on the stock, down from their previous price target of $23.00.

NiSource (NYSE:NI) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. Zacks Investment Research currently has $31.00 target price on the stock. According to Zacks, “NiSource expects to invest $40 billion in the long-term infrastructure modernization program. The planned spending will further enhance the reliability of natural gas and electric operations, and aid the company to provide reliable services to customers. NiSource continues to increase clean power assets. Nearly 75% of its investment is recovered within 18 months through rate hikes, which provides the company with funds to carry on infrastructure upgrades. NiSource also gains from efficient cost management over the long term. The stock has outperformed the industry in the past six months. Yet, the utility is exposed to variable demand for gas associated with volatility in weather patterns. Despite efforts made to maintain its assets, the old machineries may turn defunct and cause unplanned outages, thus, impacting its revenues and margins.”

News (NASDAQ:NWSA) was downgraded by analysts at Zacks Investment Research from a strong-buy rating to a hold rating. The firm currently has $21.00 price target on the stock. According to Zacks, “Shares of News Corporation have outpaced the industry in the past year. The company continued with its impressive performance in second-quarter fiscal 2022, wherein both the top and the bottom lines not only grew year over year but also beat the Zacks Consensus Estimate. The company witnessed strength primarily across Digital Real Estate Services, Dow Jones and Book Publishing segments. A surge in profitability was noticed in the News Media segment due to a revival in the advertising market. Meanwhile, Foxtel’s total streaming subscribers grew substantially. Management also remained optimistic about its acquisitions of the OPIS and Base Chemicals businesses that are likely to enhance Dow Jones’ information services business. However, it expects REA growth rates to slow in the second half as it cycled strong prior period listing volumes.”

Oshkosh (NYSE:OSK) was downgraded by analysts at Zacks Investment Research from a hold rating to a strong sell rating. The firm currently has $79.00 price target on the stock. According to Zacks, “Oshkosh’s 2022 earnings are under pressure amid supply chain disruptions—aggravated by Russia-Ukraine war and rising COVID-19 cases in China—and commodity inflation. Parts availability constraints, manufacturing inefficiencies, tough labor market and elevated costs due to the current supply chain environment will play spoilsport in 2022. For full year, the company forecasts unfavorable price/cost dynamics to be a $180-$200 million headwind (with primary impacts in the first half of 2022), up from prior projection of $140-$150 million. In the light of these headwinds, Oshkosh has trimmed its 2022 earnings guidance. It now expects EPS in the range of $5-$6, down from the previous range of $5.75-$6.75. High operating costs and capex are also likely to dent FCF levels. Thus, the stock is viewed as a risky bet.”

Rheinmetall (OTCMKTS:RNMBY) was downgraded by analysts at Oddo Bhf from an outperform rating to a neutral rating. They currently have €237.00 ($254.84) target price on the stock.

Shenandoah Telecommunications (NASDAQ:SHEN) was downgraded by analysts at B. Riley from a buy rating to a neutral rating. They currently have $21.00 target price on the stock, down from their previous target price of $29.00. They noted that the move was a valuation call. The analysts noted that the move was a valuation call.

TAL Education Group (NYSE:TAL) was downgraded by analysts at CICC Research from an outperform rating to a market perform rating.

Territorial Bancorp (NASDAQ:TBNK) was downgraded by analysts at Piper Sandler from a neutral rating to an underweight rating.

Univar Solutions (NYSE:UNVR) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. Zacks Investment Research currently has $31.00 target price on the stock. According to Zacks, “Earnings estimates for Univar for the first quarter have been stable over the past month. The company should gain from market expansion and strategic acquisitions, especially Nexeo Solutions. The Nexeo acquisition has further strengthened the company’s capabilities and accelerated its ability to create significant value for customers and shareholders. It remains on track to deliver its targeted net synergies from the Nexeo integration. Univar also remains focused on strengthening its businesses through expense management and productivity actions. Cost and productivity actions should lend support to its margins in 2022. It also has a solid liquidity position which should allow it to meet its short-term debt obligations. However, Univar is affected by higher costs and chemical price deflation. It is also exposed to supply-chain issues.”

Weyerhaeuser (NYSE:WY) was downgraded by analysts at BMO Capital Markets from an outperform rating to a market perform rating. BMO Capital Markets currently has $42.00 price target on the stock.

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