Utilities Bear the Brunt of Analyst Cuts

Analysts slashed target prices across the US utilities sector this week. Eight major utility names saw consensus targets trimmed in a single session on June 5.

Duke Energy fell to a consensus target of $138.56, down from $138.61. Entergy saw the sharpest sentiment tilt — 17 analysts hold sell ratings against just one buy. Sempra drew 14 sells and zero buys. FirstEnergy and American Electric Power both hold zero buy ratings at consensus.

The utility cuts appear linked to rising bond yields. Higher rates make dividend-heavy utility stocks less attractive relative to fixed income.

Not every sector faced pressure. Broadcom received a consensus target price upgrade to $517.61, up from $513.84. The chip giant carries a $1.83 trillion market cap. AI infrastructure demand continues to drive analyst optimism on the name.

Payroll processors held up better. Paychex and Automatic Data Processing both saw target price bumps. ADP's consensus target rose to $246.80. Paychex hit $102.07. Strong labor market data likely underpins both upgrades.

The week's pattern is clear. Rate-sensitive utilities face headwinds. Tech and payroll processors remain Wall Street favorites.