Schaeffer's Trading Floor Blog

Analyst Downgrades: Ford Motor Company, QUALCOMM, Inc. (QCOM), and Caterpillar Inc. (CAT)

Analysts downwardly revised their ratings on F, QCOM, and CAT

by 7/25/2013 9:27 AM
Stocks quoted in this article:

Analysts are weighing in today on automobile maker Ford Motor Company (NYSE:F), tech concern QUALCOMM, Inc. (NASDAQ:QCOM), and construction equipment maker Caterpillar Inc. (NYSE:CAT) . Here's a quick roundup of today's bearish brokerage notes.

  • RBC slashed its rating for F to "sector perform" from "outperform" this morning, despite the company's earnings-induced rally yesterday. (Meanwhile, J.P. Morgan Securities lifted its price target by $1 to $22.) Technically speaking, F has climbed 93.6% year-over-year to trade at $17.37. What's more, the stock tagged a new two-year high of $17.67 in yesterday's session. It's no wonder, then, that F sports a Schaeffer's put/call open interest ratio (SOIR) of 0.43, with calls outnumbering puts by a margin of almost 5-to-2 among options expiring in three months or less. This ratio sits just 1 percentage point above its one-year low of 0.42. In simple terms, Ford Motor Company's short-term speculators have rarely been more call-heavy this year.

  • QCOM saw its price target sliced to $71 from $74, and to $75 from $77 at Piper Jaffray and Brean Capital, respectively, even after the company reported stronger-than-expected quarterly revenue. (The stock also received price-target hikes from Nomura and Raymond James.) On the charts, QCOM has grown a modest 7% throughout the year to its current perch at $61.39. Nevertheless, analysts are bullishly biased when it comes to QUALCOMM, Inc. In fact 25 brokerage firms consider the stock a "buy" or better, compared to just three "holds" and not a single "sell" or worse suggestion. Plus, the consensus 12-month price target of $75.01 stands in territory not charted in 13 years.

  • BMO downgraded its rating for CAT to "market perform" from "outperform" in pre-market, while Raymond James and Credit Suisse lowered their price targets to $93.75 from $100, and to $97 from $103, respectively. Since the beginning of 2013, CAT has shaved off roughly 7% to trade at $83.44, and yesterday dropped 2.4% after reporting earnings. Still, the brokerage bunch is bullish toward CAT, which boasts 12 "buy" or better endorsements, seven "holds," and not a single "sell" or worse suggestion. Likewise, Caterpillar Inc.'s 12-month price target of $96.43 represents expected upside of 15.6% from its current price level.

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