Schaeffer's Trading Floor Blog

Analyst Downgrades: Rambus Inc., Splunk Inc, and TiVo Inc.

Analysts downwardly revised their ratings on RMBS, SPLK, and TIVO

by 8/29/2014 9:06 AM
Stocks quoted in this article:

Analysts are weighing in today on tech stock Rambus Inc. (NASDAQ:RMBS), software concern Splunk Inc (NASDAQ:SPLK), and set-top box maker TiVo Inc. (NASDAQ:TIVO). Here's a quick roundup of today's bearish brokerage notes on RMBS, SPLK, and TIVO.

  • Despite adding 28.5% this year to trade at $12.17, RMBS got hit with a $1.50 price-target cut to $13.50 at Jefferies. The brokerage firm isn't the only one with doubts about the stock, either -- short sellers are skeptical, as well. Specifically, 7.3% of Rambus Inc.'s float is sold short, which would take nearly 17 sessions to buy back, at the equity's typical trading volumes.

  • While SPLK is set to open higher out of the gate following a successful turn in the earnings confessional and an upwardly revised full-year outlook, the shares still have a long way to go to reach year-to-date breakeven -- down 34% in 2014 to rest near $45.29. Splunk Inc also received a trio of price-target cuts at Canaccord Genuity, FBR, and Susquehanna (although Barclays, Cowen, Deutsche Bank, and Janney raised their 12-month estimates). Additional bearish notes could be forthcoming on the longer-term underperformer. After all, SPLK's consensus 12-month price target is docked at $66.08 -- a nearly 46% premium to the stock's current perch -- and 14 brokerage firms maintain "strong buy" opinions on the shares, compared to just five "holds" and not a single "sell" recommendation.

  • Finally, TIVO saw its price target reduced by $1 to $19 at Barrington Research, just a day after receiving price-target hikes from BMO, Janney, and J.P. Morgan Securities. Technically speaking, TiVo Inc. shares have made measured progress in 2014, tacking on 5.6% to trade at $13.85. Meanwhile, options speculators see upside ahead, as the security's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 10.44 ranks in the bullishly skewed 80th percentile of its annual range.

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