Schaeffer's Trading Floor Blog

Analyst Downgrades: EMC, Verizon Communications, and Boeing

Analysts downwardly revised their ratings on EMC, VZ, and BA

by 1/8/2013 9:24 AM
Stocks quoted in this article:

Analysts are weighing in today on tech concern EMC Corporation (NYSE:EMC - 24.13), wireless communications provider Verizon Communications Inc. (NYSE:VZ - 44.69), and aerospace behemoth The Boeing Company (NYSE:BA - 76.13). Here's a quick roundup of today's bearish brokerage notes.

  • Despite a year-over-year advance of nearly 10%, EMC was downgraded to "market perform" from "outperform" at William Blair this morning. Nevertheless, there is still plenty of optimism to be found among the brokerage bunch. EMC boasts 24 "strong buys" and five "buy" endorsements, versus three "holds," and not a single "sell" recommendation. What's more, the security's average 12-month price target stands at $30.49, reflecting expected upside of more than 26% to Monday's closing price of $24.13.

  • With fourth-quarter earnings scheduled later this month, VZ saw its price target reduced to $49 from $50 at Nomura ahead of the open. Optimism has been prevalent in the options pits, however, as calls have outstripped puts over the last couple of weeks, as evidenced by VZ's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 1.48. This ratio ranks higher than 72% of similar readings taken within the past 52 weeks, reflecting a healthier-than-usual appetite for calls over puts.

  • Down almost 2% in pre-market action, BA was cut to "hold" from "buy" at BB&T Capital today, amid reports of an electrical fire on a 787 Dreamliner. Meanwhile, the equity's modest 2% rise over the last 12 months has left short-term traders less than impressed. Schaeffer's put/call open interest ratio (SOIR) for BA sits at 1.06, with puts outnumbering calls among the front three-months' series of options. This ratio is just 7 percentage points shy of a yearly peak, indicating near-term options players have rarely been more put-heavy toward the stock during the past year.

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