Schaeffer's Trading Floor Blog

Analyst Downgrades: Apple Inc. (AAPL), Symantec, and Coach

Analysts downwardly revised their ratings on AAPL, SYMC, and COH

by 1/24/2013 9:25 AM
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Analysts are weighing in today on tech giant Apple Inc. (NASDAQ:AAPL - 514.01), software concern Symantec Corporation (NASDAQ:SYMC - 21.46), and fine accessories designer Coach, Inc. (NYSE:COH - 50.75). Here's a quick roundup of today's bearish brokerage notes.

  • Off more than 9% in pre-market action, AAPL was hammered with bearish attention this morning, after reporting weaker-than-anticipated quarterly revenue on Wednesday, despite record iPhone and iPad sales. The lackluster results triggered a downgrade at Jefferies (to "hold" from "buy"), as well as price-target reductions by a number of brokerage firms, including Barclays, Raymond James, Baird, BMO, RBC, and Morgan Stanley. Furthermore, there could be more negative notes on the horizon. The stock currently boasts 32 "strong buys" and four "buy" endorsements, compared to three "holds," and zero "sell" suggestions.

  • Despite a well-received fiscal third-quarter earnings report, SYMC was cut to "hold" from "buy" at both Stifel Nicolaus and Wunderlich Securities ahead of the open. (Meanwhile, UBS, Credit Agricole, FBR, Barclays, and J.P. Morgan Securities lifted their price targets.) The security has gained about 14% so far this year, which could be attracting near-term bulls. Schaeffer's put/call open interest ratio (SOIR) for SYMC sits at 0.19, with calls outnumbering puts by a margin of more than 5-to-1 among options expiring in the next three months. This ratio is docked at an annual nadir, meaning short-term traders are more call-heavy now than at any other time during the last 12 months.

  • COH -- which has shed roughly 9% year-to-date -- continues to feel the sting of yesterday morning's lackluster quarterly earnings report, as Jefferies slashed the equity's price target to $50 from $55 today. Despite the stock's technical troubles of late, call activity continues to flourish on COH. The security's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio stands at 1.27, indicating calls bought to open have outpaced puts during the past two weeks. This ratio ranks higher than 65% of similar annual readings, reflecting a stronger-than-usual preference for calls over puts.

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