AVYA - Avaya stock drops to over 2-year low on multiple PT cuts after Q2 results
Avaya (NYSE:AVYA) stock fell to its lowest in over 2 years on Wednesday after multiple brokerages cut their price targets after the firm reported Q2 earnings. JP Morgan downgraded AVYA to Underweight from Neutral and cut its PT to $7 from $16, implying 7% downside to its last close. In a note to clients, analyst Samik Chatterjee said he believes "the timeline relative to the materialization of the software subscription transformation to the top and bottom-line has elongated" beyond what was earlier expected. Chatterjee raised concerns over liquidity owing to underperformance in terms of top-line growth and cash flow generation in the near term. These concerns, along with "higher than peer-group leverage will likely drive limited investor appetite for the shares", he added. Meanwhile, Barclays cut AVYA's PT to $8 from $11, implying 6.2% upside to its last close, and maintained its Equal-weight rating. Craig-Hallum slashed AVYA's PT to $13 from $30,
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Avaya stock drops to over 2-year low on multiple PT cuts after Q2 results