Downgrade Alert! Analysts Have Recently Downgraded These Stocks

As an investor, it is prudent to keep track of stocks that have been downgraded by Wall Street, as these signal an unfavorable change in the company’s outlook. Analysts usually downgrade a company’s ratings when they perceive deteriorating fundamentals, a weaker competitive position, higher valuations compared to peers, or a challenging macroeconomic environment. Importantly, analysts also share their reasons and insights behind these downgrades.

A stock’s price often reacts to analyst rating changes or adjustments in price targets. Investors can use these rating changes to gauge the risks involved and adjust their portfolio holdings accordingly. However, not every downgrade calls for an immediate sell. Instead, investors should conduct a closer review of these stocks and reassess their investment strategy.

Here’s a List of Downgraded Stocks:

Occidental Petroleum (OXY) – Morgan Stanley analyst Devin McDermott downgraded the oil major Occidental Petroleum (OXY) stock from a “Buy” rating to a Hold, and maintained the price target at $52, implying 17.6% upside potential. McDermott is becoming more cautious in the oil exploration and production sector after its stocks did better than oil in the past two weeks. The analyst says that oil demand looks weak through the end of the year. McDermott pointed out that Occidental has more debt compared to its competitors, and thus, falling oil prices will slow improvements in its financial health.

Navitas Semiconductor (NVTS) – CJS Securities analyst Jonathan Tanwanteng downgraded NVTS stock from a “Buy” rating to a Hold, without assigning a price target. The semiconductor company recently reported second-quarter results that were in line with expectations. However, its guidance for the third quarter fell short of consensus estimates amid ongoing tariff uncertainty. The company is now shifting its focus toward higher-power applications in mobile, data centers, and energy infrastructure.

EQT Corp. (EQT) – Roth MKM analyst Leo Mariani downgraded the energy company from a “Buy” rating to a Hold and also cut the price target from $75 to $57, implying 12.9% upside. The analyst downgraded several gas stocks, noting that “Henry Hub natural gas prices may remain challenged well into 2026 due to oversupply conditions.” He does not expect a meaningful recovery in gas prices until supply growth is contained and, thus, remains cautious on the industry.

Nano Nuclear Energy (NNE) – Ladenburg Thalmann & Co. analyst Michael Legg double-downgraded NNE stock from a “Buy” rating to a Sell, following the company’s Q3 business update. He also significantly slashed the price target from $51 to $9, implying 71.9% downside potential. Legg expected Nano Nuclear to narrow its focus and prioritize key projects such as the Kronos reactor. However, the company continues to pursue a broad, diversified strategy, while missed deadlines have undermined its credibility. Legg adds that side ventures in fuel, transportation, and consulting are distractions for a company of Nano Nuclear’s size and resources.

Ovintiv (OVV) – Morgan Stanley analyst Devin McDermott downgraded the petroleum company stock from a “Buy” rating to a Hold, as part of an industry-wide analysis. He also lowered the price target from $52 to $48, implying 22.6% upside potential. McDermott is becoming more cautious in the oil exploration and production sector after its stocks did better than oil in the past two weeks. The analyst says that oil demand looks weak through the end of the year. The analyst noted that Ovintiv shares have outperformed peers by 11% year-to-date.

Northern Oil & Gas (NOG) – Morgan Stanley analyst Devin McDermott downgraded NOG stock from a “Hold” rating to a Sell, while also lowering the price target from $29 to $27, implying 13.4% upside. McDermott is becoming more cautious in the oil exploration and production sector after its stocks did better than oil in the past two weeks. The analyst says that oil demand looks weak through the end of the year. McDermott noted that Northern Oil & Gas lowered growth expectations in Q2 and further downside is possible if oil moves lower.

Antero Resources Corp. (AR) – Roth MKM analyst Leo Mariani downgraded the energy company from a “Buy” rating to a Hold, while also cutting the price target from $44 to $32, implying 6% upside potential. The analyst downgraded several gas stocks, noting that “Henry Hub natural gas prices may remain challenged well into 2026 due to oversupply conditions.” He does not expect a meaningful recovery in gas prices until supply growth is contained and, thus, remains cautious on the industry. Mariani sees weak supply/demand fundamentals for gas-exposed companies.

Comstock Mining (LODE) – Ladenburg Thalmann & Co. analyst Michael Legg downgraded LODE stock from a “Buy” rating to a Hold. He also significantly slashed the price target from $12 to $4, implying 70.2% upside potential.

Range Resources (RRC) – Roth MKM analyst Leo Mariani downgraded the natural gas company from a “Buy” rating to a Hold, and also cut the price target from $44 to $35, implying 5.7% upside. The analyst downgraded several gas stocks, noting that “Henry Hub natural gas prices may remain challenged well into 2026 due to oversupply conditions.” He does not expect a meaningful recovery in gas prices until supply growth is contained and, thus, remains cautious on the industry. Mariani sees weak supply/demand fundamentals for gas-exposed companies.

Peabody Energy Corp. (BTU) – Freedom Capital analyst Vitaly Kononov downgraded the coal mining company from a “Buy” rating to a Hold, but raised the price target from $16.5 to $18.3, implying 7% upside potential. Kononov noted that lower coal prices will limit Peabody’s earnings in the near future. However, the company’s efforts to control costs, updated guidance, and strong operations create a positive outlook for the second half of 2025, and earnings rebound in 2026.

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