Schaeffer's Trading Floor Blog

Analyst Downgrades: Apple Inc. (AAPL), Yelp, and Boeing

Analysts downwardly revised their ratings on AAPL, YELP, and BA

by 1/16/2013 9:17 AM
Stocks quoted in this article:

Analysts are weighing in today on tech giant Apple Inc. (NASDAQ:AAPL - 485.92), Internet review forum Yelp Inc (NYSE:YELP - 20.61), and aerospace concern The Boeing Company (NYSE:BA - 76.94). Here's a quick roundup of today's bearish brokerage notes.

  • AAPL -- which has shed nearly 9% so far this year -- was slapped with some negative analyst attention for a second day in a row this morning. Specifically, Pacific Crest downgraded the security to "sector perform" from "outperform," while Bank of America-Merrill Lynch and Stifel Nicolaus downwardly revised their respective price targets. Nevertheless, short-term calls still outnumber puts, according to the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.64. In fact, this ratio sits at an annual low, meaning near-term traders are more call-heavy now than at any other time during the last 12 months.

  • Although YELP sports a year-to-date advance of more than 9%, the equity was cut to "underperform" from "market perform" at Northland Capital ahead of the opening bell. The shares have also outpaced the broader S&P 500 Index (SPX) by nearly 10 percentage points during the past 40 sessions, but that hasn't deterred skeptics. Short interest on YELP rose by 15% over the last two reporting periods, and now accounts for more than 19% of the security's available float. It would take a week to unwind these bearish bets, at the stock's average daily trading volume.

  • Down about 3.5% in pre-market trading, BA was cut to "buy" from "conviction buy" at Goldman Sachs today, amid reports that two Japanese airlines grounded their Dreamliner fleets following an emergency landing. However, despite the recent glut of negative headlines, most of the covering analysts maintain a positive outlook toward stock. BA currently boasts 16 "strong buys" and one "buy" recommendation, compared to three "holds" and one "strong sell" suggestion.

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