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
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Partner Center

© 2014 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: service@sir-inc.com

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

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