Shares of Latch (NASDAQ: LTCH) stock tumbled 12.8% as of 10:45 a.m. EDT on Monday after investment bank Goldman Sachs downgraded shares of the maker of building entry security software. Analysts downgraded the stock from buy to neutral.
In the midst of a still-booming housing market, "multiple datapoints indicate significant delays in residential construction projects," warned Goldman Sachs in a note covered today on StreetInsider.com , and "we now expect supply shortages in the housing construction market to persist through H2'22."
Adding to investor worries, Goldman reported that "recent deferred revenue disclosure implies [that Latch has been awarding customers] higher discounts than we had previously been modeling." The banker now estimates that Latch products are being sold for 50% off, as opposed to prior 20%-off estimates, so Goldman is cutting its revenue forecasts for Latch by a further 29% over the next 12 months.
For further details see:
Why Latch Stock Broke Today