Analysts are intrested in these 5 stocks: ( (FI) ), ( (TER) ), ( (ETSY) ), ( (AEP) ) and ( (META) ). Here is a breakdown of their recent ratings and the rationale behind them.
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Fiserv has been the subject of a wave of downgrades from analysts, with concerns about its recent performance and future prospects. Analysts like Matthew Coad and Andrew Jeffrey have downgraded the stock to ‘Hold’, citing disappointing third-quarter earnings and a significant reduction in guidance. The company’s organic revenue growth has been lower than expected, particularly in its Merchant and Financial Solutions segments. Analysts are also concerned about the impact of inflation in Argentina on Fiserv’s reported revenue growth. The company is undergoing a management transition, with new CEO Mike Lyons facing challenges in addressing these issues.
Teradyne, on the other hand, has received a positive outlook from analysts. Vivek Arya upgraded the stock to ‘Buy’, highlighting multiple growth drivers such as the faster adoption of AI compute and memory chips, and the recovery of the smartphone market. Teradyne’s robotics segment is also expected to gain traction with Amazon’s warehouse upgrades. The company is projected to experience a multi-year acceleration in sales and earnings, making it an attractive investment opportunity.
Etsy has been downgraded to ‘Hold’ by analyst Robert Coolbrith, despite a solid third-quarter performance. While the company showed fundamental progress with growth in its marketplace and Depop segments, the fourth-quarter guidance was mixed. The management’s decision to invest in Depop’s brand marketing is expected to impact short-term margins, leading to a modest decline in adjusted EBITDA in 2026. The recent CEO transition has also added some uncertainty to Etsy’s future prospects.
American Electric Power has been downgraded to ‘Market Perform’ by analyst James Thalacker. The company has repositioned itself to capitalize on the growing power demand, but the execution of its capital plan will take time. AEP’s long-term growth expectations have been raised, supported by a substantial capital plan. However, the stock’s current valuation reflects these improvements, and further multiple expansion will depend on the company’s execution.
Meta Platforms has faced downgrades from analysts like Jason Helfstein and Mark Zgutowicz, who have concerns about the company’s significant investments in AI and the uncertain revenue opportunities. While Meta’s advertising revenue has shown strong growth, the company’s high spending on AI and other initiatives has raised questions about its return on investment. Analysts believe that Meta’s shares may remain range-bound until there is more clarity on the company’s future growth prospects.