Schaeffer's Trading Floor Blog

Analyst Downgrades: Zynga Inc, Potash Corp./Saskatchewan (USA), and Salesforce.com, inc.

Analysts downwardly revised their ratings on ZNGA, POT, and CRM

by 5/21/2014 9:35 AM
Stocks quoted in this article:

Analysts are weighing in today on online social gaming concern Zynga Inc (NASDAQ:ZNGA), agricultural giant Potash Corp./Saskatchewan (USA) (NYSE:POT), and cloud computing issue Salesforce.com, inc. (NYSE:CRM). Here's a quick roundup of today's bearish brokerage notes.

  • ZNGA -- which is down 42.4% from its March 11 annual high of $5.89 to trade at $3.39 -- received a price-target cut to $4.50 from $5 at Piper Jaffray earlier today. Despite Zynga Inc's recent technical woes, call open interest roughly triples put open interest among options expiring within the next three months, per the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.33. What's more, this ratio ranks in the bottom 13% of its 12-month range, indicating the current amount of short-term call open interest on ZNGA (relative to put open interest) is heavier than usual, compared to the past 52 weeks.

  • Although up 12.4% year-to-date at $37.05, POT received a downgrade to "market perform" from "outperform" at Raymond James ahead of today's opening bell. Elsewhere, it seems the majority of the brokerage crew is skeptical toward Potash Corp./Saskatchewan (USA), as well. Currently, 12 of the 18 covering analysts maintain "hold" or worse suggestions on the equity, while the average 12-month price target of $34.29 denotes a discount of close to 8% from the shares' current price.

  • CRM's upbeat full-year earnings forecast was overshadowed by the company's widened widened first-quarter earnings loss, leading to a handful of bearish brokerage notes in pre-market action. Among the critics on Wall Street were UBS and Pivotal Research, which both dropped their price targets to $73 from $78 and $74, respectively. Heading into the quarterly event, Salesforce.com, inc. maintained a three-month deficit of about 16% to trade at $52.89, and has already shed 2.9% right out of the gate to hover around $51.36. Furthermore, the stock's SOIR of 0.62 ranks lower than 87% of comparable readings from the past year, demonstrating short-term option players are more call-heavy than usual toward CRM right now.
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