Spotify slashed to Neutral
Monness, Crespi, Hardt downgraded Spotify Technology (NYSE:SPOT) to Neutral from Buy.

Given the significant stock outperformance this year and growing concerns about potential collateral damage from this downturn, the firm decided to adopt a more cautious stance on Spotify.

The company is scheduled to report its Q3 results on October 24, and while Monness, Crespi, Hardt said Spotify is riding a favorable long-term trend, enhancing its platform, tapping into a large digital ad market, expanding its audio offerings, and improving its cost structure, they highlighted that the company faces intense competition and thin margins. As a result, the firm believes that “the darkest days of this downturn are ahead of us”.

Wells Fargo cut to Hold due to lack of near-term catalysts
CFRA downgraded Wells Fargo (NYSE:WFC) to Hold from Buy and cut its price target to $45.00 from $50.00.

The company’s shares have exhibited a sideways trading pattern since the beginning of 2023, and CFRA believes there are no near-term catalysts that are likely to boost the share price.

Two more downgrades
Agora (NASDAQ:API) shares dropped more than 11% yesterday after Morgan Stanley downgraded the company to Equalweight from Overweight and cut its price target to $3.20 from $4.60, citing a lack of signs of meaningful revenue recovery.

“The key issue remains a lack of emerging use cases contributing to incremental volume,” mentioned Morgan Stanley.

Wolfe Research downgraded ResMed (NYSE:RMD) to Peerperform from Outperform.