Schaeffer's Trading Floor Blog

Analyst Downgrades: General Motors Company, Wal-Mart Stores, Inc., and Bed Bath & Beyond Inc.

Analysts downwardly revised their ratings on GM, WMT, and BBBY

by 4/15/2014 9:27 AM
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Analysts are weighing in today on automaker General Motors Company (NYSE:GM), global retail giant Wal-Mart Stores, Inc. (NYSE:WMT), and home décor retailer Bed Bath & Beyond Inc. (NASDAQ:BBBY). Here's a quick roundup of today's bearish brokerage notes.

  • RBC lowered its price target on GM to $45 from $46, amid news that two of the automaker's executives will leave the company. General Motors Company -- which is down 20.4% year-to-date to trade at $32.55 -- may receive more bearish brokerage notes in the near term, as well, which could negatively impact the shares. Currently, 10 of the 13 covering analysts maintain "strong buy" endorsements on the stock, plus the average 12-month price target of $44.87 towers over GM's current price.

  • WMT -- which is sitting 1.7% below its year-to-date flat line to trade at $77.38 -- received a downgrade to "underperform" from "market perform" at William Blair this morning. Meanwhile, in the options pits, speculators have ignored the stock's less-than-stellar 2014 performance, buying to open more than two calls for every put during the past two weeks. The resulting 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 2.5 ranks 8 percentage points from a 12-month peak, indicating the recent rate of call buying, relative to put buying, is nearing an annual-high level.

  • SunTrust Robinson cut its price target on BBBY to $77 from $80 this morning, which comes as no surprise considering the stock tanked last Thursday on a a poorly received earnings report, and is currently sitting about 20% lower year-to-date at $64.40. Elsewhere, Bed Bath & Beyond Inc. sports 12 "hold" recommendations, compared to seven "strong buy" endorsements. Meanwhile, the consensus 12-month price target among analysts comes in at $72.56, representing expected upside of 12.7% from the shares' current perch.

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