These 13 sell-rated global stocks have serious downside risk, Wall Street analysts say

Equity analysts person slashed estimates and terms targets implicit caller days arsenic companies proceed to study disappointing third-quarter results.

CNBC Pro screened astir 1,500 ample and mid-cap planetary stocks and recovered a fig of large companies with merchantability oregon underweight ratings from concern banks.

Thirteen of these stocks — each portion of the MSCI World Index — person median expert terms targets beneath their existent stock price, according to FactSet data.

Sell-rated stocks with targets beneath their stock price

Equity analysts astatine concern banks and probe firms complaint stocks arsenic merchantability oregon underweight if they judge the shares volition execute poorly implicit the adjacent 12 months.

There are presently 5 U.S.-listed stocks connected the database that analysts expect to autumn beneath existent levels.

The world's largest movie theatre institution once again features at the apical of the list. With analysts maintaining their terms targets, the rally successful AMC's shares implicit the past 2 weeks means downside risks to its stock terms has risen to much than 60%, according to FactSet data.

"Structural shifts mightiness beryllium indispensable to execute tenable profitability, beryllium it a worldly simplification successful assemblage surface counts, reduced operating lease levels, oregon incremental enactment from the studios via improved movie splits oregon longer exclusive theatrical windows," analysts astatine Credit Suisse Equity Research said successful a enactment to clients connected Oct. 27.

They expect the banal to autumn to $0.95 – an 85% drop. "With small visibility arsenic to the grade immoderate of these mightiness beryllium achieved near-to-mid term, we support our Underperform rating."

The planetary concern absorption steadfast headquartered successful Maryland had either a merchantability oregon clasp standing by each 9 analysts covering the stock, according to FactSet. Despite shares successful the institution being down by 44% this year, the median expert terms people of $95.5 means determination could beryllium further symptom up for investors.

"While T. Rowe has historically had best-in-class performance, results much precocious person deteriorated," said analysts astatine J.P. Morgan, who person an underweight standing connected the stock. "Furthermore, integrated maturation continues to weaken with caller results representing immoderate of the slowest integrated maturation seen for the company." With a terms people of $93 per share, they expect the banal to driblet by 14.7% by December adjacent year.

The genitor institution of money manager Franklin Templeton besides does not person a azygous bargain standing from immoderate of the analysts covering the stock, according to FactSet data.

Franklin, which has $1.3 trillion worthy of assets nether management, is expected to present a year-on-year diminution successful net connected little revenues erstwhile it reports third-quarter results connected Nov. 1, according to Zacks Equity Research.

Shares successful the company, which suffers from immoderate of the aforesaid problems troubling its rival TROW, person fallen by astir 30% this year.

Other stocks with terms targets beneath existent trading levels see Japanese multinational retailer AEON, U.S.-listed Clorox, and U.K. fiscal services institution Abrdn plc.

German vigor elephantine Uniper— which the German authorities has agreed to nationalize — and Spanish vigor utilities Naturgy Energy besides made the list. The European inferior assemblage faces large headwinds arsenic earthy state prices stay much than 4 times higher than their decade-long average.

Shares successful Australian firm giants Fortescue Metals and the Commonwealth Bank of Australia are besides trading higher than their projected terms targets.

France's Aeroports de Paris, Japanese electronics shaper Sharp Corporation, and U.S.-listed vigor elephantine Consolidated Edison were immoderate of the different stocks with the smallest terms quality betwixt existent stock terms and median expert terms targets.

Four stocks — Amerco, Isracard, Loews, and Erie Indemnity — were excluded from our filter owed to a deficiency of expert ratings oregon terms targets wrong the past 100 days.