Stocks quoted in this article:
Analysts have lowered their opinions of beverage carbonation system developer SodaStream International Ltd (NASDAQ:SODA), cloud computing name Rackspace Hosting, Inc. (NYSE:RAX), and U.K.-based pharmaceutical concern GlaxoSmithKline plc (ADR) (NYSE:GSK). Here's a quick roundup of today's bearish brokerage notes.
- SODA is poised to surge out of the gate this morning, despite news that its Goliath-sized rival The Coca-Cola Company (NYSE:KO) has hitched its proverbial wagon to a new partner. The shares were also hit with a price-target reduction, as Canaccord Genuity reduced its outlook to $39 from $43, while KeyBanc downgraded the stock to "hold" from "buy." SodaStream International Ltd shares are down almost 30% year-over-year to trade at $35.79, yet the brokerage community maintains a 12-month price target of $53.63. Should today's positive price action prove short-lived, SODA could face additional price-target reductions in the future.
- As RAX prepares for its trip to the earnings confessional next Monday, RBC weighed in by lowering its price target to $40 from $46. RAX has had a rocky time on the charts, losing more than half its value in the last 12 months to rest at $37.00. This underperformance has not been lost on short sellers. The 18.5 million Rackspace Hosting, Inc. shares sold short account for more than 16% of the stock's available float, and would take more than eight days to cover, at the equity's average pace of trading.
- On the heels of yesterday's fourth-quarter earnings report -- and despite an upbeat 2014 outlook -- GSK was greeted with no fewer than four price-target reductions, including Deutsche Bank, which reduced its outlook to 1620P from 1700P, while maintaining a "hold" rating. Although GSK has made modest headway in the past year -- gaining nearly 14% to rest at $51.69 -- it has struggled to find fans on Wall Street. Currently, among the seven brokerage firms following GlaxoSmithKline plc (ADR), just one rates the stock a "buy."