Schaeffer's Trading Floor Blog

Analyst Downgrades: Google Inc, Bank of America Corp, and Barrick Gold Corporation (USA)

Analysts downwardly revised their ratings on GOOGL, BAC, and ABX

by 4/17/2014 9:35 AM
Stocks quoted in this article:

Analysts are weighing in today on global technology giant Google Inc (NASDAQ:GOOGL), financial heavyweight Bank of America Corp (NYSE:BAC), and gold miner Barrick Gold Corporation (USA) (NYSE:ABX). Here's a quick roundup of today's bearish brokerage notes.

  • After reporting weaker-than-expected earnings results for the first quarter last night, GOOGL received a handful of bearish brokerage notes. Among the critics on Wall Street were RBC and Deutsche Bank, which both slashed their price targets by $40 to $670 and $625, respectively. Since Google Inc's 2-for-1 split at the beginning of the month, the stock has shed 7% to trade at $547.74; however, 25 of the 29 covering analysts are holding on to "buy" or better endorsements. Furthermore, the average 12-month price target of $670.40 towers over GOOGL's current price.

  • BAC may have hit a technical speed bump following its less-than-stellar first-quarter earnings report yesterday morning -- which led Jefferies to cut its price target to $18.50 from $20 in overnight trading -- but the stock still boasts a year-over-year gain of nearly 37% to trade at $16.03. Elsewhere, sentiment toward Bank of America Corp is more bearish than bullish, with 14 analysts dishing out "hold" or worse suggestions, and just seven awarding the stock "buy" or better endorsements. Should Bank of America Corp resume its long-term uptrend, the other critics on Wall Street may have a change of heart, which could create additional technical tailwinds for the shares.

  • ABX -- which has lost 12.4% over the past month to trade at $18.32 -- received a price-target cut to C$20 from C$20.50 at Canaccord Genuity this morning. Meanwhile, option traders have placed bullish bets over bearish at a near-annual-high rate during the past two weeks, as evidenced by Barrick Gold Corporation's (USA) 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 8.46, which ranks just 4 percentage points from a 12-month peak.

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