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S&P 500 Stocks with Over 10% Target Price Downgrade in the 1st Week of May

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TSLA

Tesla

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S&P 500 Stocks with Over 10% Target Price Downgrade in the 1st Week of May

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): $ 56Target Price (Feb 28, 2025): $ 70Change: -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): $ 1,034Target Price (Feb 28, 2025): $ 1,157Change: -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): $ 104Target Price (Feb 28, 2025): $ 116Change: -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): $ 91Target Price (Feb 28, 2025): $ 119Change: -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): $ 54Target Price (Feb 28, 2025): $ 61Change: -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): $ 82Target Price (Feb 28, 2025): $ 93Change: -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): $ 93Target Price (Feb 28, 2025): $ 107Change: -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): $ 283Target Price (Feb 28, 2025): $ 316Change: -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.

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TSLA

Tesla

+7

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Kraft Heinz reviews options for its Maxwell House coffee business, including possible sale, as looks to reshape its food empire(Feb 25, 2019)

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KHC

Kraft Heinz

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Kraft Heinz reviews options for its Maxwell House coffee business, including possible sale, as looks to reshape its food empire(Feb 25, 2019)

Kraft Heinz, the struggling food conglomerate, has hired investment bank Credit Suisse to explore strategic options for its Maxwell House coffee business, according to sources familiar with the matter. The review could potentially lead to a sale of the iconic coffee brand, which analysts suggest might fetch approximately $3 billion, though the final valuation would ultimately depend on market interest.The Maxwell House business currently generates roughly $400 million in earnings before interest, taxes, depreciation, and amortization (EBITDA). However, the coffee industry has undergone significant transformation in recent years, with consumer preferences shifting dramatically toward premium café experiences and specialty products. Once a leading national brand that primarily competed with Folgers, Maxwell House has struggled to maintain relevance in this evolving marketplace.Kraft Heinz has attempted to modernize its coffee offerings with products like "iced coffee antioxidant max drinks" and customizable caffeine blends. The company even acquired fair trade brand Ethical Bean Coffee last year in an effort to appeal to more conscious consumers. Nevertheless, mainstream drip coffee brands continue to face substantial headwinds as companies like Starbucks and JAB Holding (owner of Keurig Dr Pepper, Krispy Kreme, and Peet's Coffee & Tea) dominate the growing segments of the market.The potential divestiture comes at a critical juncture for Kraft Heinz. The company recently delivered disappointing fourth-quarter financial results that fell significantly below market expectations. In response, management announced a 36 percent reduction in its dividend and took a substantial $15 billion write-down on two of its flagship brands, Kraft and Oscar Mayer—an acknowledgment that these brands no longer command the consumer appeal they once did.During the earnings announcement, CEO Bernardo Hees informed investors to expect additional divestitures as the company works to strengthen its balance sheet. Specifically, Kraft Heinz aims to reduce its leverage ratio from approximately four times EBITDA to three times EBITDA. This initiative has already led to the sale of the company's Canadian dairy business and its Indian beverage business Complan.The company has explicitly stated its intention to divest brands "with no clear path to competitive advantage." This strategic reassessment reflects the challenges facing the business model implemented by 3G Capital, the private equity firm that, along with Berkshire Hathaway, orchestrated the merger of Kraft and Heinz in 2015. Critics suggest that 3G Capital's aggressive cost-cutting approach, which extracted $1.7 billion in savings from the merger, may have undermined the health and competitive positioning of many brands in the portfolio.Market reaction to Kraft Heinz's recent announcements has been decidedly negative. Following the release of its disappointing financial results, the company's share price plummeted nearly 30 percent in a single day, erasing approximately $16 billion in market value. Industry analysts have expressed concern about the company's future growth prospects given the changing consumer landscape and the limitations of its cost-cutting strategy.

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Kraft Heinz

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Starbucks Profit Down Sharply on Restructuring Costs(Nov 10, 2008)

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SBUX

Starbucks

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Starbucks Profit Down Sharply on Restructuring Costs(Nov 10, 2008)

Starbucks, the global coffee chain, was built by a generation of coffee drinkers who regularly rewarded themselves with a small daily luxury.But in a sharp economic downturn, fewer people are in the mood to indulge. On Monday, the chain reported net income dropped 97 percent, capping a turbulent year in which the company tried to get ahead of the economic slowdown by closing stores and laying off employees.It may be painful for Starbucks investors to remember, but the company, based in Seattle, was once associated with predictable growth and cultural relevance. During the last two decades, Starbucks, and the other premium coffee chains that emulate it, seemed to peddle a product that was central to an affluent urban and suburban way of life.But many people are now abandoning the product, if not the lifestyle that goes with it. Over the three months that ended Sept. 28, 4 percent fewer people visited Starbucks stores, and on average, the ones that did spent 3 percent less on items like mocha cappuccinos and chocolate croissants than customers in the same period a year ago.One of Starbucks’ new rivals, McDonald’s, which started offering specialty coffee drinks this year, also reported earnings on Monday. The juxtaposition was stark. Global same-store sales at McDonald’s rose 8.2 percent in October alone, suggesting that at least some consumers are obsessing over their pennies and turning to less expensive options.“This happens in every recession,” said Erik Hurst, a professor of economics at the University of Chicago. “When times are uncertain and there’s a chance that you might be the one losing your job, you would much rather keep some discretionary funds around in the form of savings than spend them on luxuries” like expensive coffee drinks.Starbucks reported flat revenue and a 98 percent decline in profit over the fourth quarter of 2007, which were dragged down in part by charges related to its turnaround plan that includes the termination of 1,000 employees.Starbucks reported a modest profit of $5.4 million, or a penny a share, compared with $158.5 million or 21 cents a share, in the period a year ago. Revenue rose 3 percent, to $2.5 billion, up slightly from $2.4 billion a year ago. The company’s operating expenses rose because of higher payroll, higher rents and inventory write-downs, while operating profit margins shrank to 0.6 percent, from 10.2 percent in the year-ago period. It blamed weak traffic in its American stores, the source of 88 percent of its revenue.Mr. Schultz said that the worst might already be behind Starbucks. He said that the decline in sales remained constant over the first few weeks, while other retailers of premium products continued to see sales plummet.Starbucks offered a range of predictions for 2009 that included three different possibilities for what it might earn in the year ahead, related to the deterioration of consumer spending.For its entire 2008 fiscal year, Starbucks announced that net income fell to $315.5 million for the year, from $672.6 million during 2007 on revenue of $10.38 billion.Starbucks is now slowing the proliferation of its stores, which made it ubiquitous in American cities, but also a source of comedy to many. The company plans to end the 2009 fiscal year with 225 fewer company-owned stores than at the beginning of the year.Internationally, Starbucks is planning to open about 700 new stores in the fiscal year ahead, but two-thirds of those will be licensed cafes that are run by other companies, like supermarkets and bookstores.

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Starbucks