Schaeffer's Trading Floor Blog

Analyst Downgrades: Twitter Inc (TWTR), BlackBerry Ltd (BBRY), and McDonald's Corporation (MCD)

Analysts downwardly revised their ratings on TWTR, BBRY, and MCD

by 11/15/2013 9:29 AM
Stocks quoted in this article:

Analysts are weighing in today on microblogging name Twitter Inc (NYSE:TWTR), smartphone maker BlackBerry Ltd (NASDAQ:BBRY), and fast food giant McDonald's Corporation (NYSE:MCD). Here's a quick roundup of today's bearish brokerage notes.

  • TWTR jumped close to 5% yesterday to finish at $44.69, amid news that the cost to borrow the stock declined, as there are now more shares available for loan. Additionally, the company announced it is expanding the availability of "promoted" ads to a trio of countries outside of the U.S. Meanwhile, this morning UBS initiated coverage on the equity with a lukewarm "neutral" rating, and a 12-month price target of $45 -- just a stone's throw from its current perch. From a broader perspective, the brokerage bunch has dished out three "strong buy" endorsements, and four tepid "hold" suggestions for Twitter Inc. Of note, many major exchanges will begin listing options for TWTR today.

  • BBRY's longer-term technical woes have extended through November -- the stock has fallen 18.4% since the close on Oct. 31 to trade at $6.47, and tagged an annual low of $6.39 just three days ago. Against this backdrop, Macquarie downgraded the equity to "underperform" from "neutral" this morning. Moreover, short interest accounts for 31.8% of BlackBerry Ltd's available float, which would take more than 13 sessions to cover, at the stock's average pace of trading.

  • Finally, MCD -- which has shed about 6% since hitting a record peak of $103.70 in April -- saw its price target dropped to $105 from $110 at Piper Jaffray this morning. Following suit, Janney lowered the equity's fair value to $98. In the options pits, however, McDonald's Corporation sports a Schaeffer's put/call open interest ratio (SOIR) of 0.73, which ranks in the 13th percentile of its annual range. This means short-term traders are much more call-heavy than usual toward the stock right now. The equity could face some options-related headwinds in the near term, as these bullishly skewed bets begin to unwind. At last check, the stock was perched at $97.56.


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