Schaeffer's Trading Floor Blog

Analyst Downgrades: Marvell Technology Group Ltd., Cyberonics, Inc., and Aeropostale Inc

Analysts issued bearish notes on MRVL, CYBX, and ARO

by 8/22/2014 9:26 AM
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Analysts are downwardly revising their ratings today on semiconductor concern Marvell Technology Group Ltd. (NASDAQ:MRVL), medical device maker Cyberonics, Inc. (NASDAQ:CYBX), and retailer Aeropostale Inc (NYSE:ARO). Here's a quick look at today's bearish brokerage notes on MRVL, CYBX, and ARO.

  • MRVL is getting hammered by analysts after issuing lackluster earnings guidance. No fewer than six brokerage firms cut their price targets on the stock, including Susquehanna and BMO, which both reduced their targets to $14 -- a hair's breadth from MRVL's current perch at $13.64. The initial earnings reaction doesn't bode well for the recent crop of Marvell Technology Group Ltd. bulls, who have picked up call options over puts at a faster-than-usual step recently.

  • CYBX gapped 6.1% lower to settle at $58.27 yesterday, as traders reacted to the company's weaker-than-expected fiscal first-quarter earnings. Canaccord Genuity is late to the party, but downgraded CYBX to "hold" from "buy," and sliced its price target to $52 from $63. There could be more downgrades in store for Cyberonics, Inc., as all but one of the analysts following CYBX offers up a "strong buy."

  • ARO is bracing for an 8% slide out of the gate, after the firm forecast a steeper-than-expected current-quarter loss. The equity is already down nearly 57% in 2014, and now sits at $3.91. On the analyst front, Jefferies cut its price target on Aeropostale Inc to $4 from $5, and offered up a "hold" rating. In light of the stock's dismal performance on the charts, it's not surprising to find most analysts are already in the bears' corner; not one of 22 brokerage firms deems it worthy of a "buy" rating.

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