Jim Duffy of Stifel cut the ratings, price targets, and earnings projections for numerous retail and lifestyle firms on July 20. Duffy saw large inventory, a drop in traffic to physical and online retailers, and early promotions as early indicators of a recession in the economy. The US has already managed to have a gentle landing, most notably in 1994–1995 when Alan Greenspan served as chair of the Federal Reserve. There have been five occasions where the US inflation rate exceeded 5% and the economy entered a recession. Duffy reduced his expected earnings per share for the firms in the retail and lifestyle category by an average of 9%. He pointed out that the Street’s current expectation is very bullish and that history suggests that these forecasts should be revised. The forecasts might need to be revised numerous times until they reset.
Insider Monkey takes a look at the 15 retail stocks that Jim Duffy at Stifel is bearish on. Duffy downgraded Allbirds, Inc. from a Buy to a Hold recommendation. Additionally, the target price was decreased from $7 to $5. The footwear company Wolverine World Wide, Inc. is situated in Rockford, Michigan. On July 27, the business is scheduled to release its Q2 2022 results. Analysts forecast $740.11 million in revenue and adjusted EPS of 65 cents. Duffy reduced his price objective on Clarus Corporation from $27 to $24. After the market closes on August 1, the business is scheduled to release its Q2 2022 results. The projected revenue for the quarter is $110.13 million, and the projected adjusted EPS is 39 cents. The third stock on Jim Duffy’s list that was lowered from a Buy to a Hold recommendation is PLBY Group, Inc. The goal price was reduced from $11 to $7 in the meantime. The analyst believes that PLBY Group has an unfavorable risk and return profile, which is why the rating was downgraded. All-terrain vehicle (ATV), bicycle, and side-by-side vehicle maker, designer, and distributor Fox Factory Holding Corp. is based in Duluth, Georgia. On August 4, the business is scheduled to release its Q2 2022 results. On Holding AG’s target price was reduced by Duffy from $31 to $28. The firm’s higher average selling price (ASP) satisfies the demands of high-end customers. With 20 funds holding a stake in the company at the end of the first quarter of 2022, hedge fund sentiment has also deteriorated. For more details, click This Analyst Is Bearish on These 15 Retail Stocks Amid “Soft Landing” Expectations.
