Schaeffer's Trading Floor Blog

Analyst Downgrades: Akamai Technologies, Inc. (AKAM), Citrix Systems, Inc. (CTXS), and Angie's List Inc (ANGI)

Analysts downwardly revised their ratings on AKAM, CTXS, and ANGI

by 10/24/2013 9:37 AM
Stocks quoted in this article:

Analysts are weighing in today on cloud infrastructure concern Akamai Technologies, Inc. (NASDAQ:AKAM), tech issue Citrix Systems, Inc. (NASDAQ:CTXS), and business referral firm Angie's List Inc (NASDAQ:ANGI). Here's a quick roundup of today's bearish brokerage notes.

  • AKAM's strong third-quarter results have been quickly overshadowed by the company's cautious outlook for the fourth quarter. Following last night's announcement, Akamai Technologies, Inc. has plunged 10.5% to trade at $46.45. Meanwhile, B. Riley and Jefferies dropped their price targets for the stock to $48.50 from $55, and to $44 from $45, respectively. Leading into the quarterly report, the majority of the brokerage bunch held an optimistic stance on AKAM, which is up 29.1% year-over-year. In fact, the equity has received 13 "strong buy" endorsements, compared to just seven "hold" suggestions. Furthermore, the average 12-month price target of $53.69 represents expected upside to the stock's current price.

  • CTXS' decline in net income for the third quarter -- plus its weaker-than-expected fourth-quarter guidance -- led Susquehanna to lower its price target by $14 to $64, and downgrade its rating to "neutral" from "positive" ahead of the bell. Likewise, FBR, Needham, Goldman Sachs, and Jefferies slashed their respective price targets for the security. Over the past month, Citrix Systems, Inc. has plummeted 20.2%, yet 10 of the 18 covering analysts have awarded the stock a "buy" or better endorsement, and the consensus 12-month price target of $72.84 stands about 27% over CTXS' current price of $57.18. At last check, CTXS was up 2.6%, thanks to a slight increase in quarterly revenue.

  • While ANGI trimmed its losses for the third quarter, the company's revenue forecast for the current quarter fell short of Wall Street's expectations. As such, B. Riley downgraded the stock to "neutral" from "buy," and both Raymond James and Stifel cut their price targets by $6 to $23 and $25, respectively. Likewise, Canaccord Genuity and RBC lowered their own price targets, as well. On the technical front, ANGI has taken a 42.7% dive over the last three months to trade at $15.05, yet the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.63 ranks in the lowest percentile of all other annual readings, indicating short-term traders are more call-heavy now toward Angie's List Inc than they have been at any other time throughout the past year.

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