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Analysts are downwardly revising their ratings today on entertainment company Twenty-First Century Fox Inc (NASDAQ:FOXA), casino operator Las Vegas Sands Corp. (NYSE:LVS), and cable provider Charter Communications, Inc. (NASDAQ:CHTR). Here's a quick look at today's bearish brokerage notes on FOXA, LVS, and CHTR.
- ISI Group downgraded FOXA to "buy" from "strong buy," and stripped the stock of its "top pick" status. This downward revision follows Wednesday's news that Twenty-First Century Fox Inc launched an unsuccessful $80 billion bid to acquire Time Warner Inc (NYSE:TWX). FOXA fell 6.2% yesterday to end at $33, but the shares are hovering around breakeven in electronic trading this morning. Today's downgrade -- which isn't exactly a bearish call -- exemplifies the high hopes analysts have for FOXA. Among the 15 firms tracking the shares, all but one considers them worthy of a "buy" or better recommendation.
- Last night's second-quarter earnings miss for LVS has triggered three price-target cuts for the stock this morning. J.P. Morgan Securities cut its forecast to $83 from $89, Deutsche Bank lowered its target to $84 from $86, and Stifel revised its outlook to $95 from $100. Las Vegas Sands Corp. has shed 6.4% year-to-date, and ended Wednesday's session at $73.80 -- but the stock is off another 2.5% ahead of today's opening bell. Meanwhile, short-term options traders seemed to be bracing for a post-earnings pullback from LVS. The stock's Schaeffer's put/call open interest ratio (SOIR) of 1.50 arrives in the 90th annual percentile, as speculative players have been more put-heavy only 10% of the time during the past year.
- Jefferies downgraded CHTR to "hold" from "buy," but raised its price target to $175 from $160, with the brokerage firm apparently feeling uncertain after the stock's year-to-date gain of nearly 20%. Charter Communications, Inc. ended yesterday's session at $163.98 -- just above analysts' average 12-month price target of $162.69. Elsewhere, it seems that short sellers are betting against CHTR's uptrend. Short interest accounts for a healthy 7.9% of the stock's float, or 5.9 times its average daily trading volume.