Loop Capital downgraded Wayfair (W) to Sell from Hold with a price target of $90, down from $95 as part of a broader sector research note discussion “big-ticket DTC companies”. Given the outlook for rising interest rates, the end of COVID stimulus, and related demand pull-forward, the firm believes the organic sales trend is slowing for DTC companies as consumers normalize store visits. The firm adds that inflation in digital advertising has also worsened the company’s macro environment.
JP Morgan downgraded Procter & Gamble (PG) to Neutral from Overweight with a price target of $165, down from $181. The firm notes the stock’s current widened valuation premium to the group already reflects its “superiority. Investors expect to see Procter & Gamble “beat and raise,” but this is now harder under the current cost and currency headwinds, says the firm. As such, the firm believes it is prudent to take a pause and wait until consensus incorporates a more realistic outlook.
Morgan Stanley downgraded Kimco Realty (KIM) to Equal Weight from Overweight with a price target of $26.50, up from $26. The firm cites valuation for the downgrade with the shares up 34% year-over-year. The firm notes Weingarten Realty (WRI) acquisition and Albertson’s monetization are now better reflected in the stock price.