A large impact can be felt by stock prices in response to analyst upgrades and downgrades. Even though these stocks may generate short-term earnings, analysts may overestimate them, resulting in negative returns for investors.
A stock can be categorized into three ratings by analysts:
A “BUY” rating indicates that the market will improve in the near future. “Overweight” or “Outperform” can also be used as a description of “Buy”.
A “Hold” recommendation indicates the stock is expected to perform in a similar way as the overall market. Hold ratings are given by analysts to stocks they do not recommend for purchase or sale. As well as market performance, analysts refer to “hold” as equal weights.
Stocks with a “Sell” rating are predicted to lose value by analysts. There is a rare instance when analysts rate a stock as “Sell,” since they prefer to rate it as “Positive” or “Neutral.” Underperform and underweight are also phrases used to describe a “sell” rating.
With this outlook, analysts have a consensus recommendation rating of 2.60 for the stock, suggesting that investors Hold the stock. JP Morgan issued a stock update for Huntington Bancshares Incorporated (NASDAQ: HBAN) on December 13, 2022, in which the firm assigned an “Underweight” rating. Morgan Stanley on December 05, 2022, rated the stock at “an Overweight,”. 16 analysts offering their rating for the stock are split like this: 8 of the 16 rates it as a Hold; 6 see it as a buy, while 2 say it is overweight. Although bearish, it is notable that the stock is well above its 200-day simple moving average by 2.69%, while it is -2.75% below and -5.28% below its SMA50 and SMA20 respectively. The volume of shares traded in the last session stands at 36.46 million against a 3-month average of 18.97M.
Looking at the support for the user, a number of firms have released research notes about the stock. Raymond James stated their Mkt Perform rating for the stock in a research note on December 13, 2022. Piper Sandler coverage for the UserTesting Inc. (NYSE: USER) stock in a research note released on December 13, 2022, offered a Neutral rating with a price target of $7.50. Piper Sandler coverage for the UserTesting stock in a research note released on December 13, 2022, offered a Neutral rating with a price target of $7.50. Morgan Stanley was of the view on October 19, 2022, that the stock is Equal-Weight, while Oppenheimer gave the stock Outperform rating on June 17, 2022, issuing a price target of $14- $12. William Blair on their part issued Outperform rating on December 13, 2021.
On December 13, 2022, several analysts downgraded their positions on the Affirm Holdings Inc (NASDAQ: AFRM) stock and predicted its performance to their investors. The analysts at BofA Securities believe AFRM is still Neutral and set the price target between $32 and $13. Another analyst that has a Neutral rating for AFRM is UBS, which set a price target of between $14. Deutsche Bank reiterated its Hold position on the stock ($22 and $14) and Goldman initiated their Neutral position on the stock ($22).