Schaeffer's Trading Floor Blog

Analyst Downgrades: JPM, VMW, and WAG

Analysts downwardly revised their ratings on JPMorgan Chase, VMware, and Walgreen

by 6/28/2012 9:09 AM
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Analysts are weighing in today on banking behemoth JPMorgan Chase & Co. (NYSE:JPM - 36.78), tech stock VMware, Inc. (NYSE:VMW - 88.67), and drugstore chain Walgreen Company (NYSE:WAG - 29.42). Here's a quick roundup of today's bearish brokerage notes.

  • The hits keep coming for JPM, which has been having a very rough summer so far. The shares are off 3% in pre-market trading amid rumors that the bank's "hedging" losses could rise as high as $9 billion, and sector peer Citigroup chimed in with a price-target cut to $43 from $45. Additionally, Citi lowered its second-quarter earnings forecast for JPM to 70 cents per share, down from 87 cents per share. JPM is set to back down from an unsuccessful test of its 50-day moving average, on track to deepen its 52-week decline of 9.1%.

  • While options players have lately been favoring bullish bets on VMW, Citigroup today lowered its expectations for the virtualization giant. The brokerage firm cut its price target to $85 from $90 and backed its "sell" rating, implying expected downside of 4.1% from Wednesday's close at $88.67. It's a relatively rare negative note for VMW, which -- despite a recent dip -- is still clinging to a year-to-date gain of 6.6%. Among the 28 analysts tracking the stock, 18 have handed out "buy" ratings.

  • Late Wednesday, Jefferies cut its price target on WAG to $30 from $34, while maintaining its middling "hold" recommendation. The downwardly revised target is nearly flat with the stock's current perch at $29.42, and it's also well south of WAG's average 12-month price target of $35.91. On the charts, the shares have stumbled to a loss of 11% year-to-date, and they've shed 29.6% over the past 12 months -- so it's not too surprising to see WAG attracting some bearish attention.

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