Schaeffer's Trading Floor Blog

Analyst Downgrades: Cliffs Natural Resources Inc, Coach Inc, and Lazard Ltd

Analysts downwardly revised their ratings on CLF, COH, and LAZ

by 7/3/2014 9:09 AM
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Analysts are weighing in today on mining company Cliffs Natural Resources Inc (NYSE:CLF), upscale accessories designer Coach Inc (NYSE:COH), and financial advisory firm Lazard Ltd (NYSE:LAZ). Here's a quick roundup of today's bearish brokerage notes.

  • CLF -- which has reached out to Casablanca Capital for help resolving a proxy boardroom contest -- was slapped with a price-target cut to $20 from $25 at FBR this morning. On the charts, Cliffs Natural Resources Inc is down 40% year-to-date to trade at $15.72, and short interest makes up a lofty 35.8% of the stock's available float. This is equivalent to roughly nine sessions' worth of pent-up buying demand, at the shares' average pace of trading.

  • COH -- which has shed 37.5% in 2014 to trade at $35.06 -- saw its price target drop to $30 from $39 at Credit Suisse overnight. Meanwhile, in the options pits, the equity's Schaeffer's put/call open interest ratio (SOIR) sits at a 12-month low of 1.05. In other words, call open interest on Coach Inc (relative to put open interest) is at an annual-high level. In fundamental news, COH reported last night that the company will record roughly $45-$60 million in store closure costs in the fiscal fourth quarter of 2014 through the full 2015 fiscal year.

  • Finally, Raymond James downgraded LAZ to "outperform" from "strong buy" this morning. Technically speaking, Lazard Ltd has enjoyed a decent year-to-date climb of 13.5% to perch at $51.43; however, its short-term option players are more put-biased than usual toward the equity right now. This is evidenced by the stock's SOIR of 1.06, which ranks higher than 87% of similar readings taken in the last 12 months.

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