Analysts cut their price targets for three stocks from around the world over the past week: Adobe, France's Remy Cointreau, and Israeli software provider NICE. Remy Cointreau and NICE shares are also traded in US CNBC Pro screened for global stocks that have seen target price cuts from five or more analysts in the past seven days, and also have a potential upside of more than 25%. Adobe Five analysts cut their price targets ahead of Adobe's second-quarter earnings report, which was released after the bell on Thursday. Analysts say investors are concerned about Adobe's competitive moat versus startups like Canva and Figma. They also added that the market is concerned about competition in text-to-image AI models from OpenAI, Midjourney, and Google. “The company is operating in 'bad neighborhoods' (weak customer engagement, (SME) and consumer demand), competition concerns are rising, and its AI position is uncertain,” Oppenheimer analysts led by Brian Schwartz said in a note. “This suggests that beating and raising growth estimates is a long way off.” He cut his price target on the stock to $580 from $660. Despite the estimate cuts, analysts are generally bullish on the stock, with the consensus Buy rating and average price target indicating a 37.8% upside potential over the next 12 months. Rémy Cointreau It has also been a difficult week for Rémy Cointreau, makers of cognac, liqueurs and champagne. Ten analysts lowered their target price for the stock over the past week. This comes after a nearly 30% decline in its share price this year due to a cyclical decline in demand for the company's products. UBS analysts led by Sanjit Aujla said they “lack conviction that the cognac category can sustain high single-digit revenue growth” even if demand for their products picks up in the near term. They added that geopolitical risks could lead to tariffs in the United States and China and lowered their price target to 93 euros ($100.31) per share from 100 euros previously. “As a matter of sensitivity, if China implements tariffs on Cognac in line with the estimated 16% dumping margin, we estimate this would have an 8% impact on (earnings before interest and tax) if Remy is unable to pass it on,” the analysts said. “In the US, a tariff of between 10 and 25% on Cognac imports will have an impact on EBITDA if it is not fully passed through. Shares in the company – which has a market capitalization of around $4.64 billion – are traded in Across Europe and the US Over the Counter and Plenty of Liquidity NICE, which builds customer relationship management software, has seen five cuts to analysts' price targets over the past week and investors are concerned that the Israeli technology company, also listed on the Nasdaq, will face turmoil Its business due to the rise of artificial intelligence In response, the company said it is growing its artificial intelligence and digital businesses, which make up 8% of its cloud revenue with annual revenue of $150 million. RBC analysts, who cut their price target to $230 a share from $265, remain unconvinced. “We question whether this will be enough to allay investor concerns about GenAI being disrupted under an unclear definition,” RBC's Rishi Galloria said in a June 12 note to clients. However, overall, analysts remain bullish on the stock, with the average price target of 16 analysts indicating a 64% upside potential over the next 12 months.
Trending
- Two big tests are coming that will determine whether last week's stock market excitement was justified.
- How a 'seriously outstanding tax debt' can lead to your passport being revoked
- Hezbollah fires rockets at Israel in revenge for its supreme leader
- Boeing Starliner Returns Empty, NASA Enlists SpaceX to Transport Astronauts
- Dividend Stocks Are a Hot Pick in the Fall Due to the Fed and Interest Rates
- Biden speaks with Zelensky, announces new military aid to Ukraine
- Meta says WhatsApp accounts linked to Iranian hackers targeted Biden, Trump
- Stocks with the biggest moves in the middle of the day: CAVA, INTU, ROST, WDAY
A group of analysts cut their price targets for shares of Adobe, Remy Cointreau and NICE this week. this is the reason
