Thursday brought a wave of downgrades from Wall Street analysts, with four companies seeing their ratings cut as strategists reassess their outlooks heading into the new year.
The most notable shift came from Keybanc analyst Michael Leshock, who downgraded Rocket Lab Corp (RKLB) from Overweight to Sector Weight. That's analyst-speak for going from bullish to neutral. The space company's shares closed at $91.80 on Wednesday, before the downgrade hit.
Morgan Stanley analyst Simeon Gutman had a busy day, downgrading two retail names. He cut Leslie's Inc (LESL) from Equal-Weight to Underweight and slashed the price target from $3.50 to $1.50. The pool supplies retailer closed at $1.54 on Wednesday, meaning even Morgan Stanley's reduced target sits below current levels.
Gutman also took the axe to Albertsons Companies Inc (ACI), dropping it from Equal-Weight to Underweight while lowering the price target from $20 to $14. The grocery chain closed at $17.71 on Wednesday.
In an interesting twist, Goldman Sachs analyst Richard Law downgraded MoonLake Immunotherapeutics (MLTX) from Neutral to Sell while simultaneously raising the price target from $8 to $10. That's the analyst equivalent of saying "this stock might go up, but not nearly enough." With shares closing at $17.41 on Wednesday, even Goldman's increased target represents a steep decline from current levels.
The downgrades reflect shifting sentiment across sectors, from aerospace to retail to biotech, as analysts recalibrate their expectations for 2025.
