Today's most important downgrades

Morgan Stanley downgraded IBM (NYSE: IBM) to Equalweight from Overweight and cut its price target to $148.00 from $152.00 after a “significant” outperformance over the course of the last 12 months. The firm mentioned the decelerating revenue growth and the risk of underperformance in H2/23 early cycle bounce increases. Shares closed more than 3% lower today.

Needham & Company downgraded Chegg (NYSE: CHGG) to Hold from Buy and removed its price target, noting that long-term initiatives limit the near-term growth upside. According to the firm, the fiscal 2023 consensus estimate of 9.2% year-over-year Chegg Services revenue growth is too high. "When removing the inorganic contribution of Busuu, Chegg Services revenue is on pace to grow approx. 3.3% in FY22," said the firm. Shares plunged more than 16% today.

SMBC Nikko Securities downgraded PayPal (NASDAQ: PYPL) to Underperform from Neutral with a price target of $75.00, noting that branded share of checkout gains has slowed considerably. Shares fell more than 3% today.

BlackLine (NASDAQ: BL) shares fell more than 3% today after Citi downgraded the company to Sell from Neutral while raising its price target to $63.00 from $58.00.

Redburn downgraded ExxonMobil (NYSE: XOM) to Sell from Neutral. Shares closed more than 2% lower today.

By Davit Kirakosyan

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