Analyst price targets often change as new data changes their projections. The danger in relying on price targets is that the analysis they are based on can become outdated. When the market leads to a steep drop in a stock's price, it can appear to have lots of upside because those price targets have yet to be updated to reflect the new change catalyst. Buying solely on a price target can end up being a costly assumption.

Three stocks with potentially overly optimistic price targets from analysts at the moment are Walgreens Boots Alliance (NASDAQ: WBA), Rivian Automotive (NASDAQ: RIVN), and United Airlines Holdings (NASDAQ: UAL). Let's see why these three stocks are overdue for analyst downgrades.

Pharmacy retailer Walgreens Boots Alliance is struggling with profitability, its dividend yield is incredibly high at 8.75%, and the company is also balancing a growth strategy in launching primary clinics. Those are a lot of balls in the air that the company needs to juggle, and it isn't doing a great job of that right now.

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Source Fool.com