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Over the past four weeks (from Apr 4 to May 2, 2025), analyst reports indicate that a number of S&P 500 companies have had their target prices downgraded by more than 10%.

This reflects a combination of changes in company fundamentals, macroeconomic variables, and shifts in industry competition. From a sell-side perspective, such target price downgrades can signal short-term downside pressure on stock prices, meaning investors should consider appropriate risk management or sell strategies.

Below is a summary of stocks whose target prices have been revised down by more than 10% compared to four weeks ago. For each company, the target prices as of Feb 28 and Mar 28, 2025 are provided along with the percentage decline.

1. Delta Air Lines (DAL-US)

• Target Price (Mar 28, 2025): $ 56

• Target Price (Feb 28, 2025): $ 70

• Change: -20.0%

• Key Issue: Rising fuel costs and ongoing labor negotiations are creating earnings pressure and investor uncertainty.

2. BlackRock (BLK-US)

• Target Price (Mar 28, 2025): $ 1,034

• Target Price (Feb 28, 2025): $ 1,157

• Change: -10.6%

• Key Issue: Weakening asset inflows and increased margin pressure from fee compression are dampening near-term growth expectations.

3. Teradyne (TER-US)

• Target Price (Mar 28, 2025): $ 104

• Target Price (Feb 28, 2025): $ 116

• Change: -10.3%

• Key Issue: Slowing demand and heightened competition in the semiconductor and automated test equipment markets are weighing on the company’s growth outlook.

4. United Airlines Holdings (UAL-US)

• Target Price (Mar 28, 2025): $ 91

• Target Price (Feb 28, 2025): $ 119

• Change: -23.5%

• Key Issue: Higher operating costs and potential overcapacity concerns are raising doubts about margin sustainability in the near term.

5. General Motors (GM-US)

• Target Price (Mar 28, 2025): $ 54

• Target Price (Feb 28, 2025): $ 61

• Change: -11.5%

• Key Issue: Slower-than-expected EV adoption and pricing pressure across key vehicle segments are impacting profit forecasts.

6. PayPal Holdings (PYPL-US)

• Target Price (Mar 28, 2025): $ 82

• Target Price (Feb 28, 2025): $ 93

• Change: -11.8%

• Key Issue: Increasing competition from fintech startups and sluggish user growth are limiting monetization opportunities.

7. Starbucks (SBUX-US)

• Target Price (Mar 28, 2025): $ 93

• Target Price (Feb 28, 2025): $ 107

• Change: -13.1%

• Key Issue: Slower same-store sales growth and rising labor costs are putting pressure on operating margins.

8. Tesla (TSLA-US)

• Target Price (Mar 28, 2025): $ 283

• Target Price (Feb 28, 2025): $ 316

• Change: -10.4%

• Key Issue: Intensifying global EV competition and uncertainties around future delivery volumes are weighing on valuation.

While the reasons and extent of target price downgrades vary by company, overall, these revisions reflect common macroeconomic risks, such as economic recession fears, supply chain uncertainties, rising costs, intensifying competition.

Additionally, some companies are affected by structural industry changes, such as fluctuations in EV battery demand and semiconductor industry trends.

From a sell-side perspective, stocks experiencing significant target price cuts could face short-term downside pressure. Investors should consider risk management strategies, including portfolio rebalancing, short positions, market-driven adjustments – Stay alert to upcoming earnings reports, interest rate changes, and key economic indicators, as these can significantly impact volatility.

By aligning investment decisions with broader market trends, investors can navigate these shifts with greater flexibility and strategic foresight.

[Compliance Note]

• All posts by Sellsmart are for informational purposes only. Final investment decisions should be made with careful judgment and at the investor’s own risk.

• The content of this post may be inaccurate, and any profits or losses resulting from trades are solely the responsibility of the investor.

• Core16 may hold positions in the stocks mentioned in this post and may buy or sell them at any time.