Schaeffer's Trading Floor Blog

Analyst Downgrades: NetApp Inc., The Fresh Market Inc, and Transocean LTD

Analysts downwardly revised their ratings on NTAP, TFM, and RIG

by 5/19/2014 9:31 AM
Stocks quoted in this article:

Analysts are weighing in today on IT solutions provider NetApp Inc. (NASDAQ:NTAP), grocery chain The Fresh Market Inc (NASDAQ:TFM), and offshore drilling concern Transocean LTD (NYSE:RIG). Here's a quick roundup of today's bearish brokerage notes.

  • NTAP -- which is down 18.3% year-to-date to trade at $33.69 -- received three bearish brokerage notes this morning. To be more specific, Brean and BMO each cut their price targets to $39 from $48 and $45, respectively, while Janney slashed its price target by $9 to $45. For comparison, the average 12-month price target among analysts is $41.75, representing expected upside of 23.8% from the shares' current perch. Ratings-wise, however, NetApp Inc. -- which is slated to report fiscal fourth-quarter earnings after the close on Wednesday -- maintains 20 "hold" or worse recommendations, compared to just five "strong buy" endorsements.

  • UBS decreased its price target on TFM to $44 from $45 in pre-market trading, ahead of the company's trip to the earnings confessional Thursday evening. So far this year, The Fresh Market Inc has done poorly on the charts, losing 23.9% to trade at $31.00. So, it comes as no surprise that activity on Main Street has been bearishly skewed toward the equity. Right now, short interest accounts for 18.8% of TFM's available float, which represents almost three weeks' worth of pent-up buying demand, at the shares' average pace of trading.

  • Like NTAP and TFM, RIG has also been a technical laggard in 2014, currently down 15.5% year-to-date to trade at $41.57. As such, Susquehanna cut its price target to $41 from $43 this morning. Elsewhere, short interest on Transocean LTD climbed 8% during the last two reporting periods, and now makes up 14.4% of the stock's float. It would take more than two weeks to cover these bearish bets, at the equity's average daily volume.

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