Jefferies downgrades Tesla to Hold after price cuts
Jefferies downgraded Tesla (NASDAQ:TSLA) to Hold from Buy and cut its price target to $185.00 from $230.00 after the EV maker warned on the last week’s earnings call that it is likely to continue cutting prices to boost demand for its products.
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Jefferies cut its estimates for 2023, now expecting Tesla to deliver 1.79 million units with an average selling price of $46,000.
While the firm remains cautious on Tesla’s near-term earnings, it believes the long-term story remains intact.
Two firms downgrade First Republic Bank, shares plummet 49% on deposit drop
First Republic Bank (NYSE:FRC) was downgraded to Sell (from Neutral) at Janney and Hold (from Buy) at Maxim Group following the company’s reported mixed Q1 results on Monday, highlighted by a sharp drop in deposits following the recent collapse of SVB and Signature Bank.
Furthermore, the bank said it expects to cut its workforce by 20%-25% in Q2.
As a result, shares plunged more than 49% yesterday.
DigitalOcean shares drop on Needham downgrade
DigitalOcean (NYSE:DOCN) shares plunged nearly 5% yesterday after Needham downgraded the stock to Hold from Buy, noting that the company is operating in an increasingly challenging macro environment.
The downgrade was followed by rival Ovh Groupe (EPA:OVH) lowering its fiscal 2023 revenue guidance to 13%-14% growth. Additionally, Needham emphasized Amazon.com (NASDAQ:AMZN) CEO Andy Jassy's remarks regarding cautious spending behavior.
DigitalOcean is set to report its Q1/23 earnings results on May 9.
Shares are currently trading more than 4% higher in pre-market.
2 more downgrades
Stephens downgraded Cal-Maine Foods (NASDAQ:CALM) to Equal Weight from Overweight given the weak year-to-date pricing backdrop in eggs.
Shares plunged more than 4% yesterday.
The company reported its Q3 results last month, with both EPS of $6.62 and revenue of $997.5M coming in above the consensus estimates.
BofA Securities downgraded Day One Biopharmaceuticals (NASDAQ:DAWN) to Underperform from Buy and cut its price target to $9.00 from $34.00. Shares dropped more than 14% yesterday.
