Schaeffer's Trading Floor Blog

Analyst Downgrades: Advanced Micro Devices (AMD), Fifth Third Bancorp, and Travelzoo Inc.

Analysts issued bearish notes on AMD, FITB, and TZOO

by 7/18/2014 9:13 AM
Stocks quoted in this article:

Analysts are downwardly revising their ratings today on semiconductor stock Advanced Micro Devices, Inc. (NYSE:AMD), regional lender Fifth Third Bancorp (NASDAQ:FITB), and travel site Travelzoo Inc. (NASDAQ:TZOO). Here's a quick look at today's bearish brokerage notes on AMD, FITB, and TZOO.

  • AMD is getting hammered by analysts in the wake of last night's second-quarter loss. FBR downgraded the stock to "market perform" from "outperform," while BofA-Merrill Lynch lowered its rating to "underperform" from "neutral." Meanwhile, Deutsche Bank and Canaccord Genuity cut their price targets for AMD to $3.50 and $4.50, respectively. Shares of Advanced Micro Devices, Inc. have spiraled to a pre-market loss of roughly 18%, down from Thursday's close at $4.57. This post-earnings sell-off has AMD on track to open the session back in negative territory for 2014. However, bears are likely cheering today's news, as a substantial 18.1% of the equity's float is sold short.

  • Three brokerage firms cut their price targets on FITB, just one day after the bank's second-quarter results sparked a nearly 6% slide in the shares. Bernstein and Compass Point both lowered their targets to $22 from $23, while Jefferies reduced its forecast to $23 from $24. Fifth Third Bancorp shares ended Thursday at $20.28, so these analysts aren't expecting much upside going forward. Technically speaking, FITB has lost 3.6% of its value year-to-date, and is currently sandwiched between support in the $20 neighborhood and resistance around the $22 level. This sideways channel has confined the stock's progress since mid-April.

  • On the heels of Thursday morning's second-quarter revenue miss, TZOO was hit with a price-target cut to $19 from $20 at Benchmark. The stock settled Thursday at $17.59, down 41.4% on a year-over-year basis. In recent months, the $19.50 level has emerged as stubborn resistance for Travelzoo Inc. -- so it's no surprise to find the stock's average 12-month price target resting at $20. This region is also home to the equity's descending 80-day moving average, which harshly rejected TZOO's one daily close above $19.50 in the past three months.

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