Schaeffer's Trading Floor Blog

Analyst Downgrades: General Motors Company, F5 Networks, Inc., and Family Dollar Stores, Inc.

Analysts downwardly revised their ratings on GM, FFIV, and FDO

by 4/11/2014 9:38 AM
Stocks quoted in this article:

Analysts are weighing in today on automaker General Motors Company (NYSE:GM), IT company F5 Networks, Inc. (NASDAQ:FFIV), and discount retailer Family Dollar Stores, Inc. (NYSE:FDO). Here's a quick roundup of today's bearish brokerage notes.

  • Down 20.1% year-to-date to trade at $33.63, GM was hit with a price-target cut to $41 from $48 at Deutsche Bank this morning, after the firm said it will take a $1.3 billion write-down to cover its mass ignition-switch recall. Looking forward, there is still plenty of room for more downgrades and/or price-target cuts on the underperformer, which could pressure the shares lower. To be specific, 11 of the 13 covering analysts have held on to "buy" or better endorsements, and the average 12-month price target of $44.87 towers over General Motors Company's current price.

  • SunTrust Robinson initiated coverage on FFIV -- which has lost 8% over the past month to trade at $103.57 -- with a "neutral" rating and a price target of $116. For comparison, 12 other covering analysts have dished out tepid "hold" ratings on F5 Networks, Inc., while 15 maintain "buy" or better endorsements. Furthermore, the consensus 12-month price target of $118.63 represents significant expected upside to the shares' current perch.

  • After yesterday reporting financial trouble and plans to cut jobs and close underperforming stores, FDO received a handful of bearish brokerage notes, including $6 price-target cuts to $54 and $55 from Wedbush and RBC, respectively. On the charts, Family Dollar Stores, Inc. has shed 16% from its Feb. 26 closing price of $67.10 to trade at $56.38 -- touching a new annual low of $56.20 out of the gate today -- and the equity's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.88 ranks just 1 percentage point from a 12-month peak, indicating puts have been bought to open, relative to calls, at a near-annual-high pace during the past 10 weeks.

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