Schaeffer's Trading Floor Blog

Analyst Downgrades: Facebook Inc (FB), Sprint Corporation, and Splunk Inc

Analysts downwardly revised their ratings on FB, S, and SPLK

by 8/27/2014 9:14 AM
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Analysts are weighing in today on social network Facebook Inc (NASDAQ:FB), wireless issue Sprint Corporation (NYSE:S), and data analysis name Splunk Inc (NASDAQ:SPLK). Here's a quick roundup of today's bearish brokerage notes on FB, S, and SPLK.

  • Despite rallying 39% in 2014 to trade at $75.96 -- and drawing near its all-time high of $76.74 from late July -- FB saw its rating dropped to "neutral" from "buy" at Janney. As might be expected, this is a relatively rare bearish note for the Mark Zuckerberg brainchild. In fact, of the 33 brokerage firms covering Facebook Inc, 31 have doled out "buy" or "strong buy" endorsements, versus just two "holds."

  • Technical underperformer S got hit with more negative analyst attention overnight. Specifically, Canaccord Genuity slashed its price target on the stock to $5.75 from $7.50 and affirmed its "hold" rating, while Barclays reduced its target to $6 from $9, to go along with an "equal weight" opinion. On the options front, put buying on Sprint Corporation has picked up at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). In fact, the equity's 50-day put/call volume ratio across this trio of exchanges checks in at 0.91 -- in the 84th percentile of its annual range. This isn't entirely surprising, given Sprint's 46.3% year-to-date deficit to hover near $5.77.

  • Finally, ahead of tomorrow night's earnings report, SPLK saw its price target cut to $83 from $99 at Cantor. On the charts, meanwhile, the stock has been tumbling since notching a record high of $106.15 in late February, off 56.5% to rest at $46.22. That said, additional price-target reductions could still be on the way. Splunk Inc's average 12-month price target checks in at $66.69 -- a more than 44% premium to the equity's current perch. Downgrades are also possible, as 14 out of 19 covering analysts have doled out a "strong buy" recommendation on the technical laggard, compared to just five "holds" and not a single "sell" opinion.

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