Morgan Stanley Cuts PT On Vivint Smart Home, Resideo Technologies

Morgan Stanley analyst Erik Woodring lowered Vivint Smart Home Inc VVNT and Resideo Technologies Inc REZI price targets and maintained an Equal Weight rating on the shares as part of the downgrade of their IT Hardware industry view to Cautious.
Woodring lowered Vivint Smart Home price target to $10 (implying an upside of 17%) from $14, and Resideo Technologies price target to $31 (implying an upside of 30.9%) from $33.
Woodring mentions that the firm's U.S. Equity Strategy Team believes the market is in the later innings of a mid-cycle transition, and Hardware has been the worst-performing Tech group and underperformed the S&P by 11% over the past four months.
He further points to emerging cautious data points - including a decelerating CIO Hardware spending growth outlook in 2022, rising channel inventory, and recent overconsumption of PC and peripheral products - as a signal of an "impending" shift to late cycle, which should bring with it underperformance for the IT Hardware group.
Price Action: VVNT shares are trading lower by 8.66% at $8.54, while REZI is down by 3.38% at $23.75 on the last check Wednesday.

Analyst Calendar