Schaeffer's Trading Floor Blog

Analyst Downgrades: Noodles & Co, SeaWorld Entertainment Inc, and General Motors Company

Analysts issued bearish notes on NDLS, SEAS, and GM

by 8/14/2014 9:22 AM
Stocks quoted in this article:

Analysts are downwardly revising their ratings today on fast-casual restaurant chain Noodles & Co (NASDAQ:NDLS), theme park operator SeaWorld Entertainment Inc (NYSE:SEAS), and auto giant General Motors Company (NYSE:GM). Here's a quick look at today's bearish brokerage notes on NDLS, SEAS, and GM.

  • In the wake of a lackluster earnings report and a downward revision to its full-year guidance, NDLS has been pummeled with some steep price-target cuts. Piper Jaffray lowered its target to $22 from $38, Jefferies trimmed its forecast to $22 from $35, Wedbush reduced its target to $21 from $30, and Baird issued a cut to $26 from $46. Shares of Noodles & Co settled Wednesday at $25.21, but they've shed more than 20% in pre-market action to linger at $20. With the stock down nearly 30% year-to-date ahead of last night's news, bearish sentiment toward NDLS was already running high. Short interest represents 16% of the equity's float, and 80% of brokerage firms have handed out a tepid "hold" rating.

  • SEAS plummeted nearly 33% Wednesday to close at $18.90 -- after hitting an all-time low of $18.17 earlier in the session -- as traders panned the company's gloomy financial forecast. Today, the stock is getting hammered with downgrades. So far, Wells Fargo cut SEAS to "market perform" from "outperform," Bank of America-Merrill Lynch slashed its opinion to "neutral" from "buy," and Macquarie dropped its recommendation to "neutral" from "outperform." However, following yesterday's drastic sell-off, SeaWorld Entertainment Inc shares have edged up 0.8% ahead of the bell. Meanwhile, with the stock's average 12-month price target still resting at an ambitious $38.30, SEAS could be due for some price-target cuts in the weeks ahead.

  • Credit Suisse started coverage of GM with an "underperform" rating and a $33 price target, with the firm predicting a modest decline from the stock's close at $33.95 on Wednesday. General Motors Company is down roughly 17% year-to-date, and the shares have slipped an additional 0.9% in electronic trading. Despite the uninspiring price action in GM, most analysts remain upbeat. Currently, the automaker boasts nine "buy" or better ratings, compared to four "holds" and one "strong sell." Going forward, more negative notes like today's could weigh heavily on GM.

permanent link

Partner Center

© 2015 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:

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

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