Schaeffer's Trading Floor Blog

Analyst Downgrades: OVTI, RIMM, and WDC

Analysts downwardly revised their ratings on OmniVision, Research In Motion, and Western Digital

by 5/29/2012 9:25 AM
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Analysts are weighing in today on image-sensor specialist OmniVision Technologies, Inc. (OVTI - 14.19), BlackBerry parent Research In Motion Limited (RIMM - 11.00), and data storage concern Western Digital Corp. (WDC - 34.21). Here's a quick roundup of today's bearish brokerage notes.

  • Wedbush lowered its price target on OVTI to $15 from $16, while reiterating its "neutral" opinion on the stock. The brokerage firm is looking for upside of just 5.7% from Friday's close at $14.19. This negative note precedes OVTI's fiscal fourth-quarter earnings report, which is scheduled to hit the Street after the market closes this Thursday, May 31. Ahead of this event, it's worth noting that the tech issue has topped consensus profit estimates in each of the past four quarters, and OVTI's Feb. 23 report prompted a bullish gap in the shares.

  • RIMM was hit with a price-target cut to $14.50 from $17.50 at Macquarie, with the brokerage firm observing that the struggling Canadian company could benefit from deeper payroll cuts. Macquarie's downwardly revised target is right in line with the consensus 12-month forecast from analysts, which currently sits at $14.39. The U.S.-traded shares of RIMM have endured a drastic decline of 74.8% over the past 12 months, guided consistently lower by resistance at their 10-week and 20-week moving averages.

  • Barclays slashed its rating on WDC to "equal weight" from "overweight," sparking a 1.3% slide in the stock ahead of the open. The shares are fighting to maintain a foothold atop their 180-day moving average -- a former layer of resistance that has struggled to contain WDC's latest pullback. A slim majority of analysts are bullish toward the tech stock, with 11 out of 19 offering up a "buy" or better recommendation.

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