Analysts have slashed price targets on 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 the U.S. CNBC Pro screened for global stocks that have had price target cuts from five or more analysts in the past seven days, and also have potential upside of over 25%. Adobe Five analysts cut their price targets ahead of Adobe’s second-quarter earnings report, released after the bell Thursday. Analysts say investors are concerned about Adobe’s competitive moat versus startups such as Canva and Figma. They also added that the market is worried about the competition in text-to-image generation AI models from OpenAI, Midjourney, and Google . “The business is operating in ‘bad neighborhoods’ (weak customer engagement, [small-medium businesses], consumer demand), competition fears are rising, and its AI positioning is uncertain,” Oppenheimer analysts led by Brian Schwartz said in a note. “This suggests that beating and raising growth estimates is further out.” He lowered his price target on the stock to $580 from $660. Despite the estimate cuts, analysts are bullish on the stock overall, with a consensus buy rating and an average price target pointing toward 37.8% upside potential over the next 12 months. Remy Cointreau It’s also been a tough week for Remy Cointreau, the makers of cognacs, liqueurs, and champagne. Ten analysts cut their price target on the stock over the past week. It follows a nearly 30% decline in its share price this year over a cyclical fall in demand for the company’s products. UBS analysts led by Sanjeet Aujla said they “lack conviction the Cognac category can sustain high-single digit revenue growth” even if demand for their products rises in the near term. They added that geopolitical risk could lead to tariffs in the U.S. and China and cut their price target to 93 euros ($100.31) a share from 100 euros previously. “By way of sensitivity, if China were to implement tariffs on Cognac in line with its estimated dumping margin of c16%, we estimate this would be a c8% impact on [earnings before interest and taxes] if Remy were not able to pass it on the consumers. In the U.S., a c10-25% tariff on Cognac imports would be a 6-16%âEBITâimpact if not fully passed on,” the analysts said. Shares in the company â which has a market cap of around $4.64 billion â is traded across Europe and in the United States over the counter with ample liquidity. NICE NICE, which builds customer relationship management software, saw five analyst price target cuts over the past week. Investors are worried that the Israeli technology company, which also has a listing on Nasdaq, will face a disruption in its business due to the rise in artificial intelligence. In response, the company has said it is growing its AI and digital business, which makes up 8% of its cloud revenue with $150 million in annual revenues. RBC analysts, who lowered their price target to $230 a share from $265, remain unconvinced. “We question if this will suffice in quelling investor concerns of GenAI disruption given an unclear definition,” said RBC’s Rishi Jaluria in a note to clients on June 12. Overall, however, analysts remain bullish on the stock, with the average price target of 16 analysts pointing to 64% upside potential over the next 12 months.
Source Agencies
