Schaeffer's Trading Floor Blog

Analyst Downgrades: Zynga Inc, 3D Systems Corporation, and Ciena Corporation

Analysts downwardly revised their ratings on ZNGA, DDD, and CIEN

by 6/6/2014 9:29 AM
Stocks quoted in this article:

Analysts are weighing in today on online social gaming issue Zynga Inc (NASDAQ:ZNGA), 3D printing concern 3D Systems Corporation (NYSE:DDD), and tech services provider Ciena Corporation (NYSE:CIEN). Here's a quick roundup of today's bearish brokerage notes.

  • ZNGA -- which has plunged 47.8% over the last three months to trade at $2.97 -- was slapped with a price-target cut to $4.50 at Evercore this morning. Meanwhile, in the options pits, Zynga Inc sports a Schaeffer's put/call open interest ratio (SOIR) of 0.30, with call open interest more than tripling put open interest among options expiring within the next three months. What's more, this ratio ranks 11 percentage points from a 12-month low, indicating short-term speculators are more call-focused than usual toward the equity right now. On a fundamental note, ZNGA's annual shareholder meeting is scheduled for Wednesday, June 11.

  • Brean dropped its price target on DDD to $75 from $84 this morning, after the company announced yesterday it will be joining forces with Konica Minolta Business Solutions U.S.A., Inc. to expand the 3D printing industry. Elsewhere, 3D Systems Corporation (down 46.8% year-to-date to $49.40) has a significant amount of short interest stacked up against it. Almost 34% of the stock's available float is sold short, and it would take nearly two weeks to cover these bearish bets, at the shares' average pace of trading. Looking ahead, DDD will hold its annual investor and analyst meeting this coming Tuesday, June 10.

  • Cowen and Company cut its price target on CIEN by $1 to $31 today, despite yesterday morning's upbeat turn in the earnings confessional. And, while the stock enjoyed an earnings-induced spike yesterday to $22.48, the shares remain more than 6% below their year-to-date flat line -- and south of their 200-day moving average. Elsewhere, Ciena Corporation boasts 15 "buy" or better endorsements, versus just three "holds," and its average 12-month price target of $27.47 represents a 22.2% premium to the stock's current perch. Should CIEN continue on its downward trajectory, more downgrades and/or price-target cuts may be in the cards, which could create additional headwinds for the shares.
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