Schaeffer's Trading Floor Blog

Analyst Downgrades: Citigroup, Intel, and AT&T

Analysts downwardly revised their ratings on C, INTC, and T

by 1/18/2013 9:18 AM
Stocks quoted in this article:

Analysts are weighing in today on financial services firm Citigroup Inc. (NYSE:C - 41.24), semiconductor issue Intel Corporation (NASDAQ:INTC - 22.68), and wireless services provider AT&T Inc. (NYSE:T - 33.20). Here's a quick roundup of today's bearish brokerage notes.

  • On the heels of reporting weaker-than-expected quarterly earnings yesterday, C saw its price target reduced to $50 from $51 at Oppenheimer this morning. (KBW, however, upwardly revised its price target to $50 from $47.) Nevertheless, the equity -- which sports a 52-week gain of nearly 41% -- still has plenty of analysts taking up residence in its bullish camp. The stock currently boasts 16 "strong buys" and three "buy" endorsements, compared to three "holds," and two "strong sell" suggestions. What's more, the security's average 12-month price target of $47.58 among analysts reflects expected upside of more than 15% to Thursday's closing price of $41.24.

  • Down about 6% in pre-market action, INTC received a price-target cut to $28 from $32 at Credit Suisse today, after issuing a quarterly revenue outlook that fell short of analysts' projections, while also raising its full-year capital spending estimates. (Meanwhile, Piper Jaffray boosted its price target to $21 from $19.) The stock has trekked about 10% higher in 2013, which could explain the bullish bias in the options pits lately. INTC's 20-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio sits at 1.37, confirming calls bought to open have outstripped puts during the past month.

  • Up a modest 9% during the past 12 months, T was slapped with a price-target reduction from Baird to $35 from $36 ahead of the opening bell. Last night, the company revealed it will suffer a fourth-quarter charge of $10 billion due to pension expenses. Short-term traders have also adopted a pessimistic attitude. The equity's Schaeffer's put/call open interest ratio (SOIR) checks in at 2.43, signaling puts more than double calls among the front three-months' series of options. In fact, this ratio is just 6 percentage points shy of a bearish yearly peak, meaning near-term options players have rarely been more put-heavy toward T over the course of the last 12 months.

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