UPDATE: Citi Downgrades Skillz inc. (SKLZ) to Neutral
- Wall Street ends down sharply, hit by Apple and China worries
- Citi's Montagu sees risk for another S&P 500 short squeeze on futures positioning
- Chinese stocks rally on hints of authorities' commitment to reopening
- Dollar weakens, yuan rises; China's COVID controls in focus
- European stocks higher on Chinese COVID reopening hopes
Citi analyst Jason Bazinet downgraded Skillz inc. (NYSE: SKLZ) from Buy to Neutral with a price target of $2.10 (from $5.00).
The analyst comments "Skillz equity has been under pressure. We believe the efficiency of sales and marketing spend is the primary reason. If marketing efficiencies improve, the firm will achieve its goal of positive Adj EBITDA by 4Q24. However, if the status quo persists, the firm may face liquidity issues in 2024. If we assign relatively high likelihood (80%) of improved marketing efficiencies, we see the current risk-reward as fairly balanced. As such, we are downgrading from Buy to Neutral."
Shares of Skillz inc. closed at $1.83 yesterday.
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