Analysts’ Downgrades for February, 14th (AMKR, ANET, ARAY, ATVI, DCI, FTNT, IMGN, INGN, SON, SYBT)

Analysts’ downgrades for Wednesday, February 14th:

Amkor Technology (NASDAQ:AMKR) was downgraded by analysts at Zacks Investment Research from a hold rating to a strong sell rating. According to Zacks, “Amkor is well positioned in growth markets like industrial and auto and communication. The company delivered strong fourth-quarter earnings aided by robust growth in all end markets, primarily auto and mobile communication end markets. The acquisition of Nanium S.A is expected to strengthen the company's foothold in the fast-growing market of wafer-level packaging. Its high revenues and strong cash flow generation is a big positive. However, we remain concerned about weakness in the smartphone market. Also, in past 12 months, the stock has underperformed the industry it belongs to.”

Arista Networks (NYSE:ANET) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Arista is a dominant name in the data center networking market. Shares of the company have outperformed the industry over the past one year. The company’s robust product portfolio remains a key catalyst. Arista is benefiting from strong demand for 100-gigabit routing and switching products, particularly from cloud titans. Management stated that FlexRoute license (almost 150 customers) has helped the company enter additional layers of the spine for routing and data-center interconnect, where Cisco and Juniper were dominant names. Moreover, ample cash balance provides Arista the flexibility required to pursue any growth strategy, whether by way of acquisitions or otherwise. However, Arista faces stiff competition in the cloud networking solutions, particularly in the 10 Gigabit Ethernet and above. Moreover, ongoing lawsuits with Cisco are the primary headwind.”

Accuray (NASDAQ:ARAY) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Over the past year, Accuray has underperformed the broader industry. However, the company reported impressive second quarter of fiscal 2018 results. Also, the company reiterated its guidance for fiscal 2018. Accuray rides on the market’s solid response to the Radixact platform. Growing adoption of non-surgical treatment options, successful execution of restructuring plans and accretive acquisitions are other positives. Accuray’s significant international presence helps broaden its customer base. On the flip side, long sales and implementation cycles of the CyberKnife and TomoTherapy systems is a headwind. Fluctuations in currency exchange rates will continue to adversely impact Accuray’s backlog. Furthermore, unfavorable product mix, declining service revenues, sluggish macro-economic conditions and pricing headwinds are major concerns.”

Activision Blizzard (NASDAQ:ATVI) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Activision reported encouraging fourth-quarter 2017 results. The company's popularity is primarily driven by its well-known franchises, which will continue to fuel top-line growth. Increasing digital revenues, King Digital buyout and portfolio strength are the key drivers. The company’s attempts to become a broad-based media company are prudent in our view. Apart from launching a movie studio and consumer products division, the company is also strengthening its presence in the lucrative e-sports market. Shares have outperformed the industry in the past year. However, hit driven and competitive nature of the video game industry begets caution.”

Donaldson (NYSE:DCI) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Donaldson has an impressive earnings surprise history, having beaten estimates thrice in the trailing four quarters. Donaldson’s Engine Products segment has been exhibiting great momentum, benefiting from stabilization in market conditions. The company’s strategy of winning first-fit programs, aftermarket growth, constant geographic expansion and fostering innovative technology are likely to act as growth catalysts going forward. Over the past three months, the company shares have outperformed the industry average. However, Donaldson’s sales continue to be hurt by prolonged weakness in the gas turbine market. The sales continue to be hurt by prolonged weakness in the gas turbine market. Poor performance from Aerospace and Defense is making matters worse. This apart, currency risks, intensifying competition and commodity price fluctuations add to concerns.”

Fortinet (NASDAQ:FTNT) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Fortinet reported better-than-expected fourth-quarter 2017 results. The year over year comparisons were also favorable on both the counts. Notably, Fortinet has outperformed the industry in the last one year. Going ahead, we believe that the company’s strategy of focusing on selling subscription-based services will enable it to generate more stable revenues and help in expanding margins. Furthermore, acquisitions are a major positive for Fortinet as these help it to strengthen its product portfolio and capabilities, thereby boosting its top-line performance. Nonetheless, we are slightly concerned over the company’s declining revenue growth rate. Notably, over the last six quarters, the company’s revenue growth rates have been around 20%, which are significantly lower than its previous rates of over 30%. Also, a tepid first quarter revenue outlook makes us slightly cautious about its near-term performance.”

ImmunoGen (NASDAQ:IMGN) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “ImmunoGen reported wider-than-expected loss in the fourth quarter of 2017. However, revenues increased massively Year-over-year. The company has made a significant progress with regard to its lead ovarian cancer candidate, mirvetuximab soravtansine. Successful development and subsequent approval of the candidate will be a huge boost to the company as the ovarian cancer market has immense potential. The company has collaborations with big healthcare companies which not only validate its technology but also provides it with funds in the form of milestone and royalty payments. However, ImmunoGen is heavily dependent on its lead candidate, mirvetuximab soravtansine. Hence, any kind of development or a regulatory setback could hamper the stock. The ovarian cancer space being competitive is also a matter of concern for the company. The company’s shares have outperformed the broader industry in a year’s time.”

Inogen (NASDAQ:INGN) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Over the last year, Inogen has outperformed the broader industry in terms of price. The company expects direct-to-consumer sales to be its fastest growing channel, followed by domestic business-to-business sales in the coming quarters, with solid focus in Europe. The company is also upbeat about its full-year 2017 revenue guidance. Solid domestic and international business-to-business sales has been boosting Inogen. The company took a series of strategic initiatives to strengthen its product offerings and market position. On the flip side, declining rental revenues raise concern. Moreover, since the company generates a significant portion of its revenues from the international market, volatile foreign exchange rate will continue to raise concern. Low POC adoption, intensifying competition, reimbursement cuts and foreign exchange headwinds are other major concerns. Reimbursement cuts and foreign exchange headwinds are other major concerns.”

Sonoco Products (NYSE:SON) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Sonoco maintains a cautious outlook regarding fourth-quarter 2017 due to higher resin prices and impact of hurricanes. For 2017, Sonoco's earnings per share guidance range is at $2.75-$2.81, the mid-point of which reflects year-over-year growth of 2.2%. Sonoco estimates that its adjusted earnings per share for 2018 will be in the range of $3.00-$3.10. The company remains committed to executing its ‘Grow and Optimize’ strategy, which is focused on targeted growth of Consumer Packaging and Protective Solutions businesses along with optimizing Industrial-focused businesses. Additionally, it remains focused on accelerating organic growth by introducing new commercial products, improving manufacturing productivity and gaining market share. Sonoco has underperformed the industry over the past year.”

Stock Yards Bancorp (NASDAQ:SYBT) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Stock Yards Bancorp Inc. is a bank holding company. Its main subsidiary is Stock Yards Bank & Trust Company. The company provides banking, trust, investment management, private banking, and brokerage services. It operates in and around Louisville, Indianapolis, and Cincinnati. Stock Yards Bancorp Inc. is headquartered in Louisville, Kentucky. “

Territorial Bancorp (NASDAQ:TBNK) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Territorial Bancorp, Inc. intends to operate as the bank holding company for Territorial Savings Bank, a federally chartered, FDIC-insured savings bank, which provides financial services to individuals, families, and businesses. Territorial Savings Bank accepts deposits; originates home equity loans and lines of credit, construction, commercial and other non-residential real estate loans, consumer loans, multi-family mortgage loans, and other loans; offers various deposit accounts, including passbook and statement savings accounts, certificates of deposit, money market accounts, commercial and regular checking accounts, and Super NOW accounts; engages in insurance agency activities; and provides various non-deposit investments, such as annuities and mutual funds through a third-party broker-dealer. Territorial Bancorp, Inc. is based in Honolulu, Hawaii with banking offices located throughout the State of Hawaii. “

TriCo Bancshares (NASDAQ:TCBK) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “TriCo Bancshares is a bank holding company for Tri Counties Bank. The Bank conducts a commercial banking business including accepting demand, savings and time deposits and making commercial, real estate, and consumer loans. “

Tallgrass Energy GP (NYSE:TEGP) was downgraded by analysts at Zacks Investment Research from a hold rating to a strong sell rating. According to Zacks, “Tallgrass Energy GP, LP is a limited partnership company. The company is engaged in the transportation, storage and processing of natural gas, the transportation of crude oil and the provision of water business services primarily to the oil and gas exploration and production industry through its subsidiary. Tallgrass Energy GP, LP is based in LEAWOOD, United States. “

Telenor ASA (OTCMKTS:TELNY) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Telenor ASA is a leading telecommunications company in Norway, which is among the most advanced telecommunications markets in the world. It is a provider of mobile communications services worldwide. The Company has four segments: mobile communication, fixed line communication, TV-based activities (Broadcast), and others. The Telenor Group is dynamic and flexible in its business approach, always exploring new markets and new technologies to make long-term investments. This is part of the reason why Telenor has grown from a national telephone service company in Norway to one of the world’s largest mobile provider. The Telenor Group is now a driving force in the industry, engaging in pioneering research and technology development and other areas that are important to develop the core business of Telenor further. “

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