Schaeffer's Trading Floor Blog

Analyst Downgrades: SodaStream International Ltd (SODA), JDS Uniphase Corp (JDSU), and Garmin Ltd.

Analysts downwardly revised their ratings on SODA, JDSU, and GRMN

by 10/31/2013 9:40 AM
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Analysts are weighing in today on home beverage maker SodaStream International Ltd (NASDAQ:SODA), optical technologies concern JDS Uniphase Corp (NASDAQ:JDSU), and navigation device manufacturer Garmin Ltd. (NASDAQ:GRMN). Here's a quick roundup of today's bearish brokerage notes.

  • SODA's less-than-stellar earnings report yesterday morning lead Canaccord Genuity to slash its price target by $4 to $63 overnight. Following suit, Stifel downgraded the stock to "sell" from "hold" this morning. Meanwhile, heading into yesterday morning's quarterly release, short interest ramped up on SODA, increasing 7.2% in the latest reporting period. As such, short interest now accounts for a whopping 44.4% of the equity's available float, which represents almost two weeks' worth of pent-up buying demand. On the charts, SodaStream International Ltd has slipped about 13% since Tuesday's close to $55.50.

  • After projecting weak revenue for its fiscal second quarter, JDSU saw its price target cut by $1 to $15 and $13 at Evercore and MKM Partners, respectively. Likewise, Needham and Stifel both lowered their own price target. Meanwhile, since last night's earnings report, JDS Uniphase has dropped 9.6% to perch at $13.46. In the options pits, short-term call open interest nearly doubles put open interest on JDSU, as evidenced by the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.60. This ratio ranks lower than 58% of other such annual readings, conveying short-term traders are more call-heavy than usual toward JSDU right now.

  • Finally, GRMN's impressive third-quarter earnings report and upbeat full-year outlook didn't deter Raymond James from lowering its rating for the stock to "market perform" from "outperform" this morning. On the other hand, GRMN did score a $6 price-target bump to $48 at D.A. Davidson overnight. On the technical front, Garmin Ltd. has advanced almost 18% over the past three months, yet the brokerage bunch remains divided, as five of the covering analysts have deemed the equity worthy of a "buy" or better rating, while the other five have hit it with a "hold" or worse suggestion. Furthermore, the average 12-month price target of $45.16 represents a discount to GRMN's current price of $47.03.

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