Research Analysts’ Downgrades for May, 10th (ERJ, GNTX, HK, KSU, MPLX, OSK, PNW, SAND, SEGXF, SGC)

Research Analysts’ downgrades for Friday, May 10th:

Embraer (NYSE:ERJ) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Embraer is focusing on technological innovation and upgrades that will ensure strong demand for its products and sustain bottom-line growth. Embraer continues to witness strong demand for its E-jets and thereby booked notable orders in the reported quarter. Such consistent inflow of orders should boost Embraer’s revenue growth, in coming quarters. In December 2018, Embraer and Boeing approved the previously discussed terms of a strategic partnership that would boost both the companies' position in the commercial jet market. However, shares of the company underperformed its industry in the past 12 months. Embraer suffered a notable top-line decelerationin its commercial aircraft business in the fourth quarter. Additionally, a weak commercial portfolio may pose concerns for the company in the days ahead.”

Gentex (NASDAQ:GNTX) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “In first-quarter 2019, Gentex’s earnings and revenues surpassed the Zacks Consensus Estimate. Revenues also improved year over year during the quarter. The company aims to attain long-term growth, driven by robust product launches, better mix and unique technology platforms. It pursues an aggressive capital-deployment strategy. Also, rising demand for its dimmable devices is adding to its growth momentum. However, high operating expenses, and pricing pressure from automotive customers and competitors are concerns for Gentex.”

Halcon Resources (NYSE:HK) was downgraded by analysts at Roth Capital from a buy rating to a neutral rating. They currently have $3.50 target price on the stock.

Kansas City Southern (NYSE:KSU) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Shares of Kansas City Southern have outperformed its industry on a year-to-date basis. The company is being aided by growth in overall carload volumes. The company expects volume growth between 2% and 3% in 2019. The same increased 3% in 2018 on the back of volume growth at its key divisions. Moreover, revenues are expected to grow between 5% and 7% in the current year. Improvement in operating ratio, a key measure of efficiency, is a major positive for the company. The company's efforts to reward shareholders through dividend payments and buybacks are also encouraging. However, disappointing performances at the company's intermodal and automotive segments are worrisome and might hurt the stock significantly. Additionally, high capital expenditures might hamper bottom-line growth. Capex for 2019 is estimated between $640 million and $660 million, higher than $512 million reported in 2018.”

Mplx (NYSE:MPLX) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “MPLX’s balance sheet reflects weakness and significant reliance on debt. This is reflected in its debt-to-capitalization ratio of 66.6%, much higher than the industry’s 48.6%. Notably, it reported first-quarter 2019 earnings of 61 cents per unit, beating the Zacks Consensus Estimate of 59 cents supported by contribution from dropdown transactions related to the L&S segment’s pipelines and refining logistics assets. However, decreased pricing on product sales in the G&P segment partially offset the positives. The surging direct operating expenses are a concern for the partnership. Also, its natural gas processing operations in the Utica shale play and Southern Appalachian region is showing a declining trend, which can hurt MPLX’s future earnings. Given these headwinds, MPLX seems like a risky bet that ordinary investors should exit.”

Oshkosh (NYSE:OSK) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “In the second quarter of fiscal 2019, Oshkosh’s earnings and revenues beat the respective Zacks Consensus Estimate. Further, the figures rose on a year-over-year basis, supported by diverse end market and robust backlog. Further, the company updated fiscal 2019 on the back of strong backlogs along with integrated operations and supply chain. For the current fiscal year, it projects earnings per share of $7.50-$7.80. Also, improved product pricing and increased volume sales bode well for the company’s access equipment segment.It also pays regular dividends and engages in share buyback programs to enhance shareholder value.However, increasing raw material costs and macro-economic challenges are headwinds. Also, dependence on the U.S. government for the Defense segment’s sales is a concern for Oshkosh.”

Pinnacle West Capital (NYSE:PNW) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “In the past 12 months Pinnacle West Capital's shares have outperformed the industry. The company delivered lower-than-expected first-quarter earnings. Nevertheless, results improved on a year-over-year basis on the back of colder-than-normal weather. The company is well positioned to benefit from the ongoing economic improvement in its service territories that in turn will expand its customer base, generating higher demand for its services. Pinnacle West Capital’s long-term capital expenditure plan to strengthen its infrastructure and investment in battery storage projects, will make its renewable projects more effective. However, Pinnacle West Capital is subject to comprehensive guidelines by federal, state and local regulatory agencies. Its operations are impacted by fluctuations in the commodity price, weather and operational hazards.”

Sandstorm Gold (NYSEAMERICAN:SAND) was downgraded by analysts at Zacks Investment Research from a strong-buy rating to a hold rating. According to Zacks, “Sandstorm Gold Ltd. is a gold streaming company engaged in providing upfront financing for gold mining companies. It focuses on completing gold purchase agreements with gold mining companies that have advanced stage development projects or operating mines. Sandstorm Gold Ltd. is headquartered in Vancouver, Canada. “

SEGRO (OTCMKTS:SEGXF) was downgraded by analysts at Zacks Investment Research from a hold rating to a sell rating. According to Zacks, “SEGRO plc is a real estate investment trust. The company is an owner, manager and developer of warehouses and light industrial property. It operates primarily in UK and Europe. SEGRO plc is headquatered in London, United Kingdom. “

Superior Group of Companies (NASDAQ:SGC) was downgraded by analysts at Zacks Investment Research from a hold rating to a strong sell rating. According to Zacks, “Superior Uniform Group manufactures and sells a wide range of uniforms, corporate I.D., career apparel and accessories for the hospital and healthcare fields; hotels; fast food and other restaurants; and public safety, industrial, transportation and commercial markets, as well as corporate and resort embroidered sportswear. (Press Release) “

SharpSpring (NASDAQ:SHSP) was downgraded by analysts at Craig Hallum from a buy rating to a hold rating. The firm currently has $21.00 target price on the stock, up from their previous target price of $17.00.

Receive News & Ratings for Embraer SA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Embraer SA and related companies with MarketBeat.com's FREE daily email newsletter.