Equities Research Analysts’ Downgrades for May, 16th (ADSK, CHH, ESS, EW, LVS, PLD, RYN, TSGI, VZ, WEN)

Equities Research Analysts’ downgrades for Thursday, May 16th:

Autodesk (NASDAQ:ADSK) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Autodesk shares have outperformed the industry on a year-to-date basis. The company continues to benefit from growth in both subscriptions and recurring revenues. Also, increasing adoption of BIM 360 solution is a key catalyst. Moreover, Autodesk is well positioned to capitalize on the rapid adoption of computer-aided designing and manufacturing in both its domestic and overseas markets. Meanwhile, estimates have been stable lately ahead of the company's Q1 earnings. The company has positive record of earnings surprises in recent quarters. However, Autodesk’s profitability is expected to hurt from higher spending. The company’s ongoing business model transition remains an overhang. Moreover, significant product concentration is a headwind.”

Choice Hotels International (NYSE:CHH) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Choice Hotels’ shares have outperformed the industry over the past year. The company’s enthralling growth trajectory is likely to continue after it reported better-than-expected earnings in the first quarter of 2019. Earnings not only surpassed the Zacks Consensus Estimate but also grew 25% year over year, driven by its core franchising operations. Revenues, too, increased from the year-ago quarter on higher revenue per available room (RevPAR) growth. Following the results, the company provided bullish earnings guidance for 2019. By the continuous enhancement of mid-scale brand and the acquisition of WoodSpring brand, as well as the transformation and advancement of the Comfort and Cambria brand, Choice Hotels is poised for growth. However, high cost of operations and intense competition remain concerns.”

Essex Property Trust (NYSE:ESS) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Shares of Essex Property have outperformed its industry in the past six months. Also, the trend in estimate revisions of 2019 funds from operations (FFO) per share indicates a favorable outlook for the company. Courtesy of a solid balance sheet, Essex Property is likely to leverage on favorable demographic trends, household formation, healthy economy and job market growth. Substantial exposure to the West Coast market, which is home to several innovation and technology companies, offers ample scope to boost the top line over the long term. Particularly, the operating fundamentals in the West Coast market have been healthy. The Northern California and Seattle regions are witnessing solid demand, backed by the technology sector. However, apartment deliveries are expected to remain elevated in a number of its markets in the near term, which will fuel competition and curb the company’s capability to raise rents and turn on rental concessions.”

Edwards Lifesciences (NYSE:EW) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Edwards Lifesciences has reported better-than-expected first-quarter 2019 figures. The company has been seeing strong transcatheter valve sales in the domestic and overseas markets. It has registered strong sales within its Critical Care division, boosted by a surge in HemoSphere sales. Currently, Edwards Lifesciences awaits the full-market launch of the HemoSphere platform with FloTrac System and Acumen Hypotension Predictive Index. The company is also upbeat about the acquisition of CASMED, expected to strengthen its position in smart monitoring technologies within the critical care platform. Further, we are pleased with Edwards Lifesciences’ recent receipt of the CE Mark for PASCAL. Overall, in the past three months, Edwards Lifesciences outperformed its industry. Meanwhile, persistent supply constraints dented Cardioband system sales. This apart, tough competition in the cardiac devices market and reimbursement issues raise concerns.”

Las Vegas Sands (NYSE:LVS) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Shares of Las Vegas Sands have outperformed the industry so far this year. Increased revenues at casino, rooms and mall drove the company’s top line in first-quarter 2019. It generated solid revenues from Macao operations as well. In the next couple of years, the company is likely to spend $2 billion in Macao. To strengthen the resort portfolio, Las Vegas Sands is focusing on expanding the Four Seasons Tower Suites Macao, St. Regis Tower Suites Macao and the Londoner Macao. Planned investment in new capital projects in Macao and higher revenues from The Parisian Macao are also likely to drive growth. Las Vegas Sands’ consistent focus on a convention-based Integrated Resort business model is an added positive. Nevertheless, high debt and competition are worrisome. Estimates for the current year have witnessed upward revisions in the past 30 days.”

Prologis (NYSE:PLD) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Shares of Prologis have outperformed its industry, over the past three months. Notably, the industrial real estate category continues to witness soaring demand for space amid healthy economy, job-market gains, high-consumer spending and e-commerce boom. Companies are making immense efforts to improve supply-chain efficiencies, propelling demand for logistics infrastructure and efficient distribution networks. Given Prologis’ balance-sheet strength and prudent financial management, it remains well poised to capitalize on this favorable trend. However, a whole lot of new buildings are slated to be completed and made available in the market in the near term, leading to higher supply and lesser scope for rent and occupancy growth. Additionally, any protectionist trade policies will have an adverse impact on economic growth, as well as the company’s business over the long term.”

Rayonier (NYSE:RYN) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Shares of Rayonier have outperformed its industry, over the past three months. Further, the trend in estimate revisions of 2019 earnings indicate upbeat outlook for the company. Rayonier’s portfolio of timberlands in some of the most productive timber-growing regions of the U.S. South, Pacific Northwest and New Zealand offer the company ample scope for growth. It has upgraded its portfolio through strategic acquisitions and is expected to gain from the recovery in the nation’s housing sector. Further, recent development in biogenetics and cloning bode well for the company. Also, substantial cash flow growth and solid capital structure will likely enable Rayonier to maintain its dividends. However, an international footprint makes it earnings susceptible to foreign exchange fluctuations. Also, heightening competition and regulatory requirements remain key concerns.”

Stars Group (TSE:TSGI) was downgraded by analysts at Desjardins from a buy rating to a hold rating. Desjardins currently has C$35.00 price target on the stock, down from their previous price target of C$37.50.

Verizon Communications (NYSE:VZ) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Verizon started 2019 on a promising note with solid performance in the first quarter, primarily backed by the wireless business. The company recorded modest top-line growth and remains well poised to benefit from the impending 5G boom. Focus on online content delivery, mobile video and online advertising are likely to stoke further growth. Management also raised its earlier guidance on underlying strength of its business model. The stock has outperformed the industry in the past year on average. However, Verizon continues to struggle in a competitive and saturated U.S. wireless market, where spectrum crunch has become a major issue. The wireline division is struggling with persistent losses in access lines owing to competitive pressure from VoIP service providers and aggressive triple-play offerings by cable firms. Verizon is also spending heavily on promotion and lucrative discounts to woo customers, which is further contracting margins.”

Wendys (NASDAQ:WEN) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Shares of Wendy’s have outperformed the industry in a year’s time. The company is expected to remain on its growth trajectory, after posting better-than-expected earnings in the first quarter of 2019. Earnings not only surpassed the Zacks Consensus Estimate but also increased 27.2% year over year, primarily favored by the positive effect of lower tax rate. Increase in adjusted EBITDA also boosted the reported quarter’s earnings. Revenues in the quarter grew on increased sales at company-operated restaurants. Menu innovation, increased investments in technology and reimaging of restaurants are expected to boost traffic and drive sales in the months ahead. Moreover, the company’s international business is poised to be a long-term growth driver. However, higher labor and commodity costs, along with capital spending, may dent margins.”

Boingo Wireless (NASDAQ:WIFI) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Boingo Wireless, Inc. is a Wi-Fi software and services provider. Boingo users can access the mobile Internet via Boingo Network locations that include the airports, hotel chains, caf├ęs and coffee shops, restaurants, convention centers and metropolitan hot zones. The company provides its solutions to individual users and partners consisting of telecom operators, network operators, cable companies, technology companies, enterprise software and services companies, and communications companies. Boingo Wireless, Inc. is headquartered in Los Angeles, California. “

Receive News & Ratings for Autodesk Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Autodesk Inc and related companies with MarketBeat.com's FREE daily email newsletter.



Leave a Reply