Watch Out! 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, or a challenging macroeconomic environment. Importantly, analysts also share their reasons and insights behind these downgrades.

Common factors leading to downgrades include declining sales and earnings, regulatory headwinds, or high valuations compared to peers. 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:

Advanced Micro Devices (AMD) – Ahead of AMD’s Q2 results, DZ Bank analyst Ingo Wermann double-downgraded AMD stock from a “Buy” to a “Sell” rating, yet raised the price target from $118 to $150, implying 16.4% downside potential from current levels. While he has not provided specific reasons for the downgrade, his bearish stance could be due to factors such as competitive landscape and execution risk as well as AMD’s position in the artificial intelligence (AI) market.

Lam Research Corp. (LRCX) – Lam Research supplies innovative wafer fabrication equipment (WFE) and services. Summit Insights analyst Kinngai Chan downgraded LRCX stock to a “Hold” rating from “Buy,” despite the company exceeding expectations in its Q2FY25 results. Chan expects Lam Research to experience moderating WFE spend in 2026.

United Parcel Service (UPS) – UPS is one of the world’s largest package delivery and logistics companies. UPS reported mixed Q2 results, with sales beating estimates but earnings falling short. Moreover, the company suspended its full-year guidance due to continued tariff uncertainty. Following the news, Vertical Research analyst Jeff Kauffman downgraded UPS to a “Hold” from a “Buy” rating, while maintaining a price target of $103 (18.2% upside).  

American Tower Corporation (AMT) – American Tower is a real-estate investment trust (REIT) focused on wireless and broadcast communications infrastructure. HSBC analyst Ali Naqvi downgraded AMT stock to a “Hold” from a “Buy” rating, and also cut the price target from $245 to $235 (12.6% upside). Despite reporting strong Q2 results, Naqvi doesn’t see much scope for share price appreciation, since the shares have already gained over 20% this year, especially considering AMT slightly lowered its U.S. growth forecast.

Rio Tinto (RIO) – Rio Tinto engages in the mining and exploration of iron ore, aluminum, copper, and other minerals. Deutsche Bank analyst Liam Fitzpatrick downgraded RIO stock to a “Hold” from a “Buy” rating, citing iron ore risks after Rio reported its first half results. Although Rio remains the analyst’s “preferred iron ore major” and is “delivering consistently,” Fitzpatrick sees downside risks to iron ore in the months ahead.

Booking Holdings (BKNG) – Booking Holdings is an online travel and hotel reservation portal. Following the company’s Q2 results, Wedbush analyst Scott Devitt downgraded BKNG to a “Hold” from a “Buy” rating. Devitt noted that Booking reported healthy Q2 results, but the guidance for Q3 was weaker than expected.

Union Pacific Corporation (UNP) – Union Pacific Corp. is one of America’s largest railroad companies. UNP announced its intent to acquire its smaller rival, Norfolk Southern (NSC), for $85 billion to create a mega rail company. Following the news, Citi analyst Ariel Rosa downgraded UNP stock to a “Hold” from a “Buy” rating, and also slashed the price target to $250 (11% upside) from $270. Rosa is excited about the idea of a transcontinental railroad, but expects strong opposition. The analyst thinks both stocks may stay flat as investors wait on regulatory approval and possible conditions.

CyberArk Software (CYBR) – CyberArk is a software security and identity management solutions provider. Larger rival Palo Alto Networks (PANW) agreed to acquire CyberArk for $20 billion, aiming to launch the “next chapter of cybersecurity” and tackle the AI threat. Following the news, several analysts downgraded CYBR stock from a “Buy” rating to a “Hold.” William Blair analyst Jonathan Ho noted that with the deal, the combined company is well positioned to address the growing identity threat surface with a unified platform. BTIG analyst Gray Powell stated that since CyberArk trades at only a 3% discount to its current $453 per share takeout price, a Hold rating is more appropriate. Meanwhile, Stifel Nicolaus analyst Adam Borg kept his price target unchanged at $444, implying 2% upside potential.

Caesars Entertainment (CZR) – Caesars Entertainment is a premium casino-entertainment and hospitality company. CFRA analyst Zachary Warring downgraded CZR stock to a “Sell” rating from a “Hold” and also slashed the price target from $50 to $21, implying 24.7% upside potential. Warring was disappointed by Caesars’ weak Regionals/Vegas business performance during the second quarter.

Vyne Therapeutics (VYNE) – VYNE Therapeutics is a clinical-stage biopharmaceutical company focused on developing novel treatments for chronic inflammatory and immune-mediated conditions. The company announced that its Phase 2b trial for Repibresib gel failed to meet its primary endpoint and did not meet a key secondary endpoint, leading to the discontinuation of the ongoing extension phase of the trial. Following this news, several analysts downgraded VYNE stock from a “Buy” rating to a “Hold.” H.C. Wainwright analyst Joseph Pantginis noted that the Phase 2b result was “a surprise to us” and “puts the company in a precarious position.” BTIG analyst Julian Harrison and LifeSci Capital analyst Rami Katkhuda also downgraded VYNE stock for similar reasons.

NeoGenomics (NEO) – NeoGenomics is a specialized clinical laboratory company that focuses on cancer diagnostic testing services to support precision oncology. NeoGenomics missed Q2 expectations and also cut its fiscal 2025 revenue guidance. Following this news, William Blair analyst Andrew Brackmann downgraded NEO stock to a “Hold” rating and stated that the significant reduction in FY25 guidance is a step toward rebuilding investor credibility, but he believes restoring confidence will take time and that shares are expected to struggle for a while. Similarly, BTIG analyst Mark Massaro downgraded NEO to a Hold rating and stated that investors are questioning management’s credibility, which he believes is a fair concern.

Norfolk Southern (NSC) – Union Pacific Corp. announced its intent to acquire Norfolk Southern for $85 billion to create a mega rail company. Following this news, J.P. Morgan analyst Brian Ossenbeck downgraded NSC stock from a “Buy” rating to a “Hold” but lifted the price target to $288 (from $282), implying 3.3% upside potential from current levels.

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