Schaeffer's Trading Floor Blog

Analyst Downgrades: Deere & Company, PepsiCo, Inc., and Avon Products, Inc.

Analysts downwardly revised their ratings on DE, PEP, and AVP

by 2/14/2014 9:35 AM
Stocks quoted in this article:

Analysts are weighing in today on farming equipment manufacturer Deere & Company (NYSE:DE), soft drink giant PepsiCo, Inc. (NYSE:PEP), and beauty products specialist Avon Products, Inc. (NYSE:AVP). Here's a quick roundup of today's bearish brokerage notes.

  • DE -- which has shed about 6.3% year-to-date to trade at $85.58 -- saw its price target cut to $83 from $84 at BMO this morning. Elsewhere, analysts have already dished out bearish brokerage notes, as Deere & Company maintains nine "holds" and 7 "sell" or worse suggestions, compared to just two "strong buy" endorsements. Meanwhile, the average 12-month price target of $87.42 represents a slight premium to the stock's current price.

  • Janney and Bernstein dropped their price targets on PEP to $80 from $85, and to $87 from $93, respectively, after the company announced yesterday it will extend its savings productivity plan through 2019. On the charts, PepsiCo, Inc. has lost 8.4% over the past three months to trade at $79.15, yet the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.56 ranks 11 percentage points from a 12-month low, indicating short-term speculators have rarely been more call-heavy toward PEP during the past year.

  • Bernstein and Wedbush both cut their price targets on AVP to $17 from $20 and $21, respectively, while BMO slashed its price target by $3 to $15, following the company's fiscal fourth-quarter sales miss yesterday morning. Since the turn of the year, Avon Products, Inc. has shed 16.1% to trade at $14.44, so it comes as no surprise short interest grew 31.8% during the last two reporting periods. Now, 3.5% of the stock's float is sold short, which is equivalent to 15.2 million shares.

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