Watch Out! Analysts Downgraded these Stocks on August 4

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:

Coinbase Global (COIN) – Following the weaker-than-expected Q2 results of the cryptocurrency exchange platform, Compass Point analyst Ed Engel downgraded COIN stock from a “Hold” to a “Sell” rating. He also slashed the price target on the stock from $330 to $248, implying 22% downside potential from current levels. Engel sees declining retail interest in crypto treasury stocks and believes that increased stablecoin competition will weigh on both Coinbase and partner Circle Internet’s (CRCL) valuation in the second half of 2025.

Essex Property Trust (ESS) – Essex Property Trust is a residential-focused real estate investment trust (REIT). Last week, Essex reported better-than-expected Q2 earnings per share and FFO (funds from operations) but lowered its full-year fiscal 2025 FFO outlook. Following the news, Piper Sandler analyst Alexander Goldfarb downgraded ESS stock from a “Buy” rating to a “Hold” and cut the price target to $275 (from $355), implying 8% upside. Goldfarb cited weaker fundamentals for apartment REITs and the weak jobs report for July as reasons for the downgrade.

ON Semiconductor (ON) – ON Semiconductor supplies semiconductor products and solutions including power management, analog, discrete components, sensors, image sensors, and mixed-signal integrated circuits. Last week, ON reported mixed Q2 results, with sales exceeding expectations while earnings were in line with forecasts. Bank of America Securities analyst Vivek Arya downgraded ON stock from a “Buy” rating to a “Hold” and lowered the price target to $56 from $70, implying 16.7% upside. Arya cited several reasons for the downgrade, including a muted sales recovery, continued weakness in the U.S. and European auto markets, increasing reliance on China EVs, and limited to no gross margin recovery for several quarters.

Performant Healthcare (PHLT) – Performant Healthcare is a health-tech company that offers technology-enabled audit, eligibility, recovery, and data analytics services to healthcare players. On August 1, Performant Healthcare agreed to be acquired by Machinify for $670 million. Following the news, Craig-Hallum analyst George Sutton downgraded PHLT stock from a “Buy” rating to a “Hold” and raised the price target from $7 to $7.5, in line with the per-share acquisition amount.

Baxter International (BAX) – Baxter International is a multinational healthcare company that develops and markets medical products and therapies for treatment of chronic and acute medical conditions. Stifel Nicolaus analyst Rick Wise downgraded BAX stock from a “Buy” rating to a “Hold” and lowered the price target to $25 from $36, implying 11.4% upside. Wise attributed the downgrade to “disappointing” Q2 performance, full-year guidance reduction, and the 2026 outlook. He believes that Baxter will take longer-than-expected to reach a path of reliably-consistent mid-single-digit sales growth and meaningful margin expansion.

Chart Industries (GTLS) – Chart Industries is a global leader in the design, engineering, and manufacturing of highly engineered cryogenic and process equipment for handling gas and liquid molecules. BTIG analyst Gregory Lewis downgraded GTLS stock from a “Buy” rating to a “Hold” after the company agreed to be acquired by Baker Hughes (BKR) for $210 per share in cash. He maintained the price target at $210, implying 5.7% upside.

Shell PLC (SHEL) – HSBC analyst Kim Fustier downgraded the oil and gas major Shell from a “Buy” rating to a “Hold,” stating that trading “normalization” in liquified natural gas (LNG) and oil will weigh on Shell’s profits more than on its peers. Moreover, she believes that Shell’s net debt could rise by almost 50% to nearly $60 billion over the next few years, as distributions will be unfunded organically until the end of the decade. She also added that Shell’s valuation premium compared to TotalEnergies (TTE) is no longer justified.

EPR Properties (EPR) – EPR Properties is a specialized REIT that focuses on owning and leasing experiential properties, such as amusement parks, movie theaters, ski resorts, and water parks, among others. RBC Capital analyst Michael Carroll downgraded EPR stock from a “Buy” rating to a “Hold” and maintained the price target at $58 (5.6% upside). Carroll believes that EPR shares are now trading at a more reasonable valuation following the recent rally. Notably, EPR stock has surged nearly 29% so far this year. He added that although EPR is good at investing in experiential real estate, the profit margins are still too small to boost the company’s current earnings.

Vitesse Energy (VTS) – Vitesse Energy is an independent energy company that focuses on acquiring, developing, and producing non-operated oil and natural gas properties primarily in the U.S. Jefferies analyst Lloyd Byrne downgraded VTS stock from a “Buy” rating to a “Hold” and cut the price target from $33 to $27 (14.7% upside), without providing any specific reasons. Surprisingly, the downgrade follows Vitesse’s strong Q2FY25 results, which exceeded both sales and earnings per share expectations.

Tronox (TROX) – Tronox is a chemical company that engages in the mining and processing of titanium-bearing mineral sands and producing titanium dioxide (TiO2) pigment. UBS analyst Joshua Spector downgraded TROX stock from a “Buy” rating to a “Hold” and slashed the price target to $3.6 (from $8), implying 13.2% upside. Spector believes Tronox’s volume and earnings will stay weak in the near term, pushing recovery further out than expected. He also sees the company’s debt as a concern in a weak demand market. Despite a 60% cut in dividends, Spector believes a much stronger demand is needed to significantly improve Tronox’s cash flow and inventory.

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