Schaeffer's Trading Floor Blog

Analyst Downgrades: Whole Foods Market, Inc. (WFM), QUALCOMM, Inc. (QCOM), and BlackBerry Ltd (NASDAQ:BBRY)

Analysts downwardly revised their ratings on WFM, QCOM, and BBRY

by 11/7/2013 9:31 AM
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Analysts are weighing in today on grocery chain Whole Foods Market, Inc. (NASDAQ:WFM), tech concern QUALCOMM, Inc. (NASDAQ:QCOM), and smartphone maker BlackBerry Ltd (NASDAQ:BBRY). Here's a quick roundup of today's bearish brokerage notes.

  • WFM's weaker-than-expected forecast for fiscal 2014 did not sit well with the brokerage bunch. This morning, Jefferies and Cantor both cut their price targets by $2 to $68 and $51, respectively. Likewise, Suntrust and Sterne Agee lowered their own price targets, while J.P. Morgan Securities, on the other hand, raised its price target by $6 to $66. On the technical front, Whole Foods Market, Inc. is up 41.4% year-to-date, tagging a new all-time high of $65.59 early last week. However, since last night's quarterly announcement, the equity has dropped 10.5% from yesterday's closing price of $64.47. Meanwhile, WFM's Schaeffer's put/call open interest ratio (SOIR) of 1.21 ranks in the 80th percentile of its annual range, indicating short-term traders were more put-heavy than usual toward the stock ahead of its report.

  • QCOM's fiscal fourth-quarter earnings miss and soft guidance for the current quarter led Morgan Stanley to slash its price target by $3 to $75, and Northland to downgrade the stock to "market perform" from "outperform." Following suit, Deutsche Bank, Raymond James, and Piper Jaffray also dropped their respective price targets. QUALCOMM, Inc., like WFM, was sitting near multi-year high territory ahead of last night's quarterly statement; however, the stock is now down 3.5% from Wednesday's closing price of $69.74. Meanwhile, unlike WFM, QCOM sports a SOIR of 0.51, which ranks just 9 percentage points from an annual low. In other words, short-term speculators have rarely been more call-heavy toward the stock during the past year.

  • BBRY was hit with another bearish brokerage note this morning, as Cowen and Company sliced its price target to $7.50 from $9. On the charts, the struggling smartphone maker has shed 14.3% since the close on Nov. 1, and now sits 43.9% lower year-to-date at $6.66. Elsewhere, the brokerage bunch is already skeptical toward BlackBerry Ltd (NASDAQ:BBRY). From the 27 covering analysts, the equity has received 18 "holds," two "sells" and seven "strong sell" suggestions. However, the average 12-month price target of $10.64 still represents expected upside of 60%, meaning BBRY may be in for even more price-target cuts in the near term.

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