Analysts’ Downgrades for December, 5th (BIG, DMTGF, DNR, HFC, JACK, NFX, RGC, SMTC, STO, TSLA)
Big Lots (NYSE:BIG) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Big Lots’ shares have outperformed the industry in the past six months owing to better-than-expected earnings for the eighth straight quarter and encouraging earnings outlook. Meanwhile, both furniture financing programs and soft home have been consistently gaining traction. Following third-quarter fiscal 2017 results, management raised fiscal 2017 earnings guidance but remained somewhat cautious about sales and comparable store sales performance. Sales growth for the full year is predicted to increase by 2%, compared with earlier guided range of 2-2.5%. Moreover, challenging retail landscape, aggressive promotional strategies and waning store traffic might weigh on the performance. Softness in electronics, toys and accessories also remains a concern. Gross margins, which have declined in the second and third quarter is expected to fall further in the final quarter of 2017.”
DAILY MAIL&GEN TST (OTCMKTS:DMTGF) was downgraded by analysts at Citigroup Inc. from a buy rating to a neutral rating.
HollyFrontier (NYSE:HFC) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “HollyFrontier is one of the largest independent oil refiners in the U.S. with the capability to process a wide mix of crude. While its access to some of the fastest growing domestic markets bode well for the downstream operator, the Petro-Canada Lubricants acquisition has helped HollyFrontier expand into a high-margin, less competitive business. A strong financial position and attractive yields are other positives in the HFC story. However, HollyFrontier has been bogged down by lingering issues pertaining to the refining margins, plus cost escalation associated with maintenance downtime and unplanned refinery shutdowns. As it is, we remain wary of the continued pressure on HollyFrontier's top line. Last but not the least, the U.S. refiners are feeling the pinch of higher RFS costs to comply with new cleaner gasoline production rules. Given these factors, we see HFC as a stock that ordinary investors should hold.”
Jack in the Box (NASDAQ:JACK) was downgraded by analysts at Zacks Investment Research from a hold rating to a strong sell rating. According to Zacks, “Jack in the Box’s shares have underperformed its industry year to date. The company’s fourth-quarter fiscal 2017 earnings of 73 cents lagged the Zacks Consensus Estimate by 18% and fell 24.3% year over year (y/y) due to lower revenues and restaurant operating margins. Revenues of $338.7 million also missed the consensus mark and declined 15% y/y. Notably, comps at the Qdoba brand have been suffering due to poor restaurant level execution. A choppy sales environment in the U.S. restaurant space has been further hurting comps at both the brands, and might continue doing so. Even so, Jack in the Box’s premium and value offerings, along with increased focus on menu innovation, franchising and delivery should somewhat aid in spurring growth. Efforts to reinvigorate the Qdoba brand along with management’s plan of even considering alternatives to the brand also bode well. Still, high costs might continue to hurt margins.”
Newfield Exploration (NYSE:NFX) was downgraded by analysts at Wolfe Research from an outperform rating to a market perform rating.
Regal Entertainment Group (NYSE:RGC) was downgraded by analysts at Wedbush from an outperform rating to a neutral rating.
Semtech (NASDAQ:SMTC) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Semtech is currently riding on differentiated growth drivers and diversification strategy. Key growth drivers for Semtech are product differentiation, operational flexibility and a specific focus on fast-growing segments and regions. The company’s fiscal third quarter 2018 earnings improved both sequentially and year over year. However, concerns about the company’s exposure to seasonality, a competitive market and foreign exchange risk persist. On a year-to-date basis, the stock has underperformed the industry it belongs to.”
Statoil ASA (NYSE:STO) was downgraded by analysts at Bank of America Corp from a neutral rating to an underperform rating.
Tesla (NASDAQ:TSLA) was downgraded by analysts at Cann from a hold rating to a sell rating.
Winnebago Industries (NYSE:WGO) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Winnebago has been focusing to increase its production of Class A gas and Class C motorhomes by building new facilities, which will lead to a rise in product demand, in future. The company’ shares repurchase programs and frequent dividend payments will boost its shareholders’ value. Moreover, in the last three months, its shares have outperformed in the industry it belongs to. However, the company’s debt of $309 million for the acquisition of Grand Design is hampering its liquidity. Further, Winnebago’s challenging Motorized segment and its repurchase agreement to purchase vehicles at a reduced price in case of any default by the dealer are few other problems the company is facing.”
Yum China (NYSE:YUMC) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “Yum China Holdings, Inc. is a licensee of Yum! Brands primarily in mainland China. The company have rights to KFC, China’s quick-service restaurant concept, Pizza Hut, casual dining restaurant brand and Taco Bell. Yum China Holdings, Inc. is based in Shanghai, China. “
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