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Fly News Breaks for March 22, 2017
KATE, GIS, LB, TDG, AAL
Mar 22, 2017 | 10:20 EDT
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Morgan Stanley analyst Rajeev Lalwani downgraded American Airlines (AAL) to Equal Weight from Overweight, calling it one of the most leveraged cyclical names in the airlines group, with weak margins, a high debt profile, and facing pricing pressures from rising capacity in key markets. 2. Cowen analyst Gautam Khanna downgraded TransDigm (TDG) to Market Perform from Outperform. The analyst cited the outside prospect of a Department of Defense inquiry, the potential elimination of the interest deductibility for tax purposes, high financial leverage, and headline risks. 3. KeyBanc analyst Todd Thomas downgraded L Brands (LB) to Underweight from Sector Weight with a $40 price target to reflect both high C-mall exposure and emerging headwinds in its Victoria Secret and Bath and Body Works brands. 4. Citi analyst Kate McShane downgraded Kate Spade (KATE) to Neutral, saying the potential takeout premium priced into the shares has created a more balanced risk/return setup. The analyst raised her price target for the shares to $24 from $18. 5. Stifel downgraded General Mills (GIS) to Hold from Buy and lowered its price target to $60 from $67, as analyst Christopher Growe voiced increased concerns regarding sales improvement at the company and the related margin improvement outlook. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.