Netshoes downgraded to Underweight from Overweight at JPMorgan. JPMorgan analyst Andre Baggio double downgraded Netshoes to Underweight from Overweight without a price target. Since its initial public offering, the company has "disappointed on multiple fronts," leading to declining sales growth and risks to getting to profitability, Baggio tells investors in a research note. He believes "continuous cash burn" should further stretch Netshoes' balance sheet.
Netshoes valuation overly discounts downside risks, says Goldman Sachs. Goldman analyst Irma Sgarz said Netshoes shares are down 26% since the mixed Q3 report and down 53% in the last three months on concerns regarding increasing competitive threats ans B2B execution missteps. Sgarz lowered Buy rated Netshoes estimates and cut her price target to $10 from $20 but said valuation overly discounts downside risks and sees the company becoming EBITDA positive in 2018.