Schaeffer's Trading Floor Blog

Analyst Downgrades: Groupon Inc, Wal-Mart Stores, Inc., and Newmont Mining Corp

Analysts downwardly revised their ratings on GRPN, WMT, and NEM

by 2/21/2014 9:27 AM
Stocks quoted in this article:

Analysts are weighing in today on daily deals provider Groupon Inc (NASDAQ:GRPN), global retail king Wal-Mart Stores, Inc. (NYSE:WMT), and gold miner Newmont Mining Corp (NYSE:NEM). Here's a quick roundup of today's bearish brokerage notes.

  • GRPN's fourth-quarter earnings report failed to impress the brokerage crew. Among the bears on Wall Street are Macquarie and BofA-Merrill Lynch, which cut their price targets to $8.75 from $10.75, and to $11 from $13, respectively, this morning. Though the stock hit a technical speed bump recently, it still boasts a lofty year-over-year gain of 77.2% to perch at $10.28. Should Groupon Inc resume its longer-term uptrend, the shares may end up benefiting from some short-covering activity, considering these bearish bets currently make up a lofty 8.6% of the equity's float.

  • WMT -- which has shed 6.6% year-to-date to trade at $73.52 -- was downgraded to "hold" from "buy" at Stifel this morning, a session after the retailer reported earnings. Elsewhere, however, speculators appear to be bullish on Wal-Mart Stores, Inc. The stock's Schaeffer's put/call open interest ratio (SOIR) of 0.47 ranks 4 percentage points from a 12-month low, indicating short-term option traders have rarely been more call-heavy on WMT than they are now.

  • NEM's fourth-quarter earnings miss led Jefferies to lower its price target on the stock to $17 from $18 this morning. On the charts, the equity has been a long-term technical laggard, dropping almost 40% in the past 12 months to trade at $24.46. With that being said, 13 of the 16 covering analysts have dished out "hold" or worse suggestions on Newmont Mining Corp., and the average 12-month price target of $24.40 falls short of the shares' current perch.

permanent link
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.