Schaeffer's Trading Floor Blog

Analyst Downgrades: Keurig Green Mountain Inc, AT&T Inc., and NetApp Inc.

Analysts downwardly revised their ratings on GMCR, T, and NTAP

by 5/22/2014 9:37 AM
Stocks quoted in this article:

Analysts are weighing in today on coffee guru Keurig Green Mountain Inc (NASDAQ:GMCR), telecom giant AT&T Inc. (NYSE:T), and IT solutions provider NetApp Inc. (NASDAQ:NTAP). Here's a quick roundup of today's bearish brokerage notes.

  • Roth lowered its rating on GMCR to "neutral" from "buy" this morning, despite the shares' 49.6% year-to-date advance to $112.47. Elsewhere, the equity has faced similar skepticism, as short interest accounts for a lofty 12.5% of Keurig Green Mountain Inc's available float -- an amount that would take more than eight sessions' to cover, at the stock's average daily volume. With that being said, an extension of GMCR's upward trajectory may cause some short-covering activity, which could create additional tailwinds on the shares.

  • Although T is up 11.6% from its Feb. 6 near-two-year low of $31.74 to perch at $35.41, Bernstein initiated coverage on the stock with a tepid "market perform" rating this morning. AT&T Inc. -- which is in the process of buying DIRECTV (NASDAQ:DTV) -- is no stranger to bearish attention from the brokerage crew, as 14 of the 23 covering analysts have dished out "hold" or "strong sell" suggestions. Not to mention, the average 12-month price target of $36.09 represents a slim 2.3% premium to the shares' current price. This leaves the door wide open for potential upgrades and/or price-target hikes, which could provide additional upside for the shares.

  • NTAP's weaker-than-expected first-quarter earnings guidance caused an uproar on Wall Street, with no fewer than 10 brokerage firms downwardly adjusting their positions on the stock. Among the bears were Needham, which initiated a "hold" rating on NTAP, and UBS, which cut its price target to $36 from $40 this morning. Heading into the quarterly announcement, NetApp Inc. -- which is down 12.8% year-to-date to trade at $35.74 -- already maintained mostly bearish ratings, with 20 of the 25 covering analysts dishing out "hold" or worse suggestions. However, the average 12-month price target is $40.53, representing expected upside of 17.5% from the shares' current price.
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