Today's most important downgrades

RBC Capital downgraded Affirm Holdings Inc. (NASDAQ: AFRM) to Sector Perform from Outperform with a price target of $17.00 after the company announced a 19% job cut, reported Q2 results that missed the consensus expectations and provided a gloomier-than-expected outlook.

The firm believes the combination of higher funding costs, latency effects of pricing actions, and expected deceleration into H2/23 GMV and revenues points to a more challenging environment ahead.

The company’s Q2 EPS came in at ($1.10), worse than the consensus estimate of ($1.00). Revenue was $400 million, missing the consensus estimate of $416.49M. For Q3, the company expects revenue to be in the range of $360-380M, missing the consensus of $418M. Full-year revenue is seen at $1.475-1.55B, compared to the consensus of $1.64B.

Affirm Holdings shares plunged 17% today.

Roth Capital downgraded DraftKings Inc. (NASDAQ: DKNG) to Sell from Neutral with a price target of $15.00 ahead of the Q4 earnings announcement on Feb 16.

The firm expects H1/23 EBITDA losses greater than consensus and reduces investor conviction in the company's profitability narrative.

Shares fell more than 6% today.

Piper Sandler downgraded NuVasive (NASDAQ: NUVA) to Neutral from Overweight while raising its price target to $60.00 from $50.00 following the announcement, according to which Globus Medical will merge with NuVasive in a proposed $3.1B all-stock deal.

NuVasive shares surged more than 8% intra-day today, closing with a nearly 3% gain.

CFRA downgraded Tesla (NASDAQ: TSLA) a Buy rating from Strong Buy while raising its price target to $250.00 from $210.00.

Sidoti downgraded Black Hills Corp (NYSE: BKH) to Neutral from Buy.

The company reported its Q4 results on Tuesday, with EPS of $1.11 coming in worse than the consensus estimate of $1.18. Revenue was $791.4M, beating the consensus estimate of $427.6M.

By Davit Kirakosyan

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