Schaeffer's Trading Floor Blog

Analyst Downgrades: Visa Inc, The Gap, and OmniVision Technologies

Analysts downwardly revised their ratings on V, GPS, and OVTI

by 3/1/2013 9:11 AM
Stocks quoted in this article:

Analysts are weighing in today on credit card behemoth Visa Inc (NYSE:V - 158.64), apparel retailer The Gap Inc. (NYSE:GPS - 32.92), and chip maker OmniVision Technologies, Inc. (NASDAQ:OVTI - 15.41). Here's a quick roundup of today's bearish brokerage notes.

  • Although V has advanced more than 35% on a year-over-year basis, the security was downgraded to "hold" from "buy" at Argus ahead of the opening bell. Nevertheless, despite this downbeat attention, most of the covering analysts maintain a high opinion of the stock. V currently boasts 19 "strong buys" and two "buy" recommendations, compared to eight "holds," and zero "sell" suggestions. Also of note, Thomson Reuters shows an average 12-month price target of $174.03 for the security, reflecting expected upside of about 10% to Thursday's closing price of $158.64.

  • GPS reported better-than-anticipated quarterly earnings post-close yesterday, but that didn't stop Susquehanna from lowering its price target to $42 from $45 today. (However, Canaccord Genuity and Janney handed out upward price-target adjustments.) Meanwhile, there is plenty of call activity surrounding the security, which sports a 52-week gain of more than 31%. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 20-day call/put volume ratio of 2.56 for GPS, signaling calls bought to open have more than doubled puts during the past month.

  • Down about 12% in pre-market action, OVTI was cut to "market perform" from "outperform" at Raymond James this morning, after issuing a fiscal fourth-quarter outlook that was well below analysts' projections. Adding insult to injury, J.P. Morgan Securities reduced its price target to $19.50 from $23. This skepticism toward OVTI isn't limited to the brokerage bunch, as short interest represents a formidable 13% of the equity's available float. In fact, it would take almost two weeks to unwind these bearish bets, at the stock's average daily trading volume.

permanent link

Partner Center

© 2015 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email:

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by | Data delayed 15-20 minutes unless otherwise indicated.