Equity analysts have slashed estimates and price targets over recent days as companies continue to report disappointing third-quarter results.
CNBC Pro screened almost 1,500 large and mid-cap global stocks and found a number of major companies with sell or underweight ratings from investment banks.
Thirteen of these stocks — all part of the MSCI World Index — have median analyst price targets below their current share price, according to FactSet data.
Sell-rated stocks with targets below their share price
| Name | Ticker | Price target | Downside risk |
|---|---|---|---|
| AMC Entertainment | AMC-USA | 2.57 USD | -61.3% |
| T. Rowe Price Group | TROW-USA | 95.50 USD | -12.4% |
| AEON Co., Ltd. | 8267-TKS | 2400.00 JPY | -12.2% |
| Uniper SE | UN01-ETR | 2.75 EUR | -11.1% |
| Franklin Resources, Inc. | BEN-USA | 21.00 USD | -10.4% |
| Clorox Company | CLX-USA | 128.00 USD | -9.5% |
| Commonwealth Bank of Australia | CBA-ASX | 94.57 AUD | -7.7% |
| Naturgy Energy Group | NTGY-MCE | 23.70 EUR | -6.0% |
| Aeroports de Paris SA | ADP-PAR | 125.00 EUR | -5.8% |
| Fortescue Metals Group | FMG-ASX | 15.14 AUD | -5.8% |
| Sharp Corporation | 6753-TKS | 850.00 JPY | -5.3% |
| Abrdn plc | ABDN-LON | 1.50 GBP | -3.4% |
| Consolidated Edison, Inc. | ED-USA | 83.00 USD | -3.2% |
Source: CNBC, FactSet
Equity analysts at investment banks and research firms rate stocks as sell or underweight if they believe the shares will perform poorly over the next 12 months.
There are currently five U.S.-listed stocks on the list that analysts expect to fall below current levels.
AMC Entertainment
The world’s largest movie theater company once again features at the top of the list. With analysts maintaining their price targets, the rally in AMC‘s shares over the past two weeks means downside risks to its share price has risen to more than 60%, according to FactSet data.
“Structural shifts might be necessary to achieve reasonable profitability, be it a material reduction in sector screen counts, reduced operating lease levels, or incremental support from the studios via improved film splits or longer exclusive theatrical windows,” analysts at Credit Suisse Equity Research said in a note to clients on Oct. 27.
They expect the stock to fall to $0.95 – an 85% drop. “With little visibility as to the extent any of these might be achieved near-to-mid term, we maintain our Underperform rating.”
T. Rowe Price Group
The global investment management firm headquartered in Maryland had either a sell or hold rating by all 9 analysts covering the stock, according to FactSet. Despite shares in the company being down by 44% this year, the median analyst price target of $95.5 means there could be further pain ahead for investors.
“While T. Rowe has historically had best-in-class performance, results more recently have deteriorated,” said analysts at J.P. Morgan, who have an underweight rating on the stock. “Furthermore, organic growth continues to weaken with recent results representing some of the slowest organic growth seen for the company.” With a price target of $93 per share, they expect the stock to drop by 14.7% by December next year.
Franklin Resources
The parent company of fund manager Franklin Templeton also does not have a single buy rating from any of the analysts covering the stock, according to FactSet data.
Franklin, which has $1.3 trillion worth of assets under management, is expected to deliver a year-on-year decline in earnings on lower revenues when it reports third-quarter results on Nov. 1, according to Zacks Equity Research.
Shares in the company, which suffers from some of the same problems troubling its competitor TROW, have fallen by nearly 30% this year.
Global stocks
Other stocks with price targets below current trading levels include Japanese multinational retailer AEON, U.S.-listed Clorox, and U.K. financial services company Abrdn plc.
German energy giant Uniper— which the German government has agreed to nationalize — and Spanish energy utilities Naturgy Energy also made the list. The European utility sector faces major headwinds as natural gas prices remain more than four times higher than their decade-long average.
Shares in Australian corporate giants Fortescue Metals and the Commonwealth Bank of Australia are also trading higher than their projected price targets.
France’s Aeroports de Paris, Japanese electronics manufacturer Sharp Corporation, and U.S.-listed energy giant Consolidated Edison were some of the other stocks with the smallest price difference between current share price and median analyst price targets.
Four stocks — Amerco, Isracard, Loews, and Erie Indemnity — were excluded from our filter due to a lack of analyst ratings or price targets within the past 100 days.
