Schaeffer's Trading Floor Blog

Analyst Downgrades: Coupons.Com Inc, Micron Technology, Inc., and Walgreen Company

Analysts issued bearish notes on COUP, MU, and WAG

by 8/7/2014 9:24 AM
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Analysts are downwardly revising their ratings today on retail promotions platform Coupons.Com Inc (NYSE:COUP), semiconductor stock Micron Technology, Inc. (NASDAQ:MU), and drugstore operator Walgreen Company (NYSE:WAG). Here's a quick look at today's bearish brokerage notes on COUP, MU, and WAG.

  • After the company last night confessed to a wider-than-forecast second-quarter loss, COUP was hit with a price-target cut to $22 from $26 at RBC. The stock has skidded steadily lower since hitting a double top around the $33 area in early June, with COUP ending Wednesday's session at $19.49. In light of this technical underperformance, short sellers have been eyeing Coupons.Com Inc lately. Short interest on the stock rose by 3.6% over the past two reporting periods, and now accounts for more than three weeks' worth of pent-up buying demand, at COUP's average daily volume.

  • RBC also lowered its price target on MU, with the brokerage firm handing out a $1 cut to $37 -- even as it stood by an "outperform" rating. Micron Technology, Inc. closed yesterday at $30.68, up more than 41% year-to-date. Despite this major outperformance on the charts, short sellers continue to target MU. With 11.5% of the stock's float sold short, it would take 4.5 sessions for all of these bears to buy back their bets. MU is recently pulled back to support at the $30 level, and a bounce from here could shake loose some of these skeptics.

  • WAG yesterday plummeted 14.3% to finish at $59.21, as the retailer opted against relocating its headquarters overseas in a so-called "tax inversion" following its completed acquisition of Alliance Boots. So far today, Walgreen Company has been hit with price-target cuts from Jefferies, Cowen and Company, and BB&T. Of those three, Cowen has the lowest expectations for WAG, trimming its target to $62. (On the other hand, Cantor upped the shares to "hold" from "sell," and lifted its price target to $56 from $50.) WAG is poised to pare some losses today, up 2.8% ahead of the bell. However, with 65% of analysts calling the stock a "buy" or better, there could be more negative notes in store during the short term.

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