Analyst Downgrades: United Technologies Corporation, Paypal Holdings Inc, and Viacom, Inc.

Analysts downwardly revised their ratings and price targets on United Technologies Corporation (NYSE:UTX), Paypal Holdings Inc (NASDAQ:PYPL), and Viacom, Inc. (NASDAQ:VIAB)

Karee Venema

Sep 19, 2016 at 10:02 AM

Analysts are weighing in on Dow stock United Technologies Corporation (NYSE:UTX), electronic payment processor Paypal Holdings Inc (NASDAQ:PYPL), and entertainment name Viacom, Inc. (NASDAQ:VIAB). Here's a quick roundup of today's bearish brokerage notes on UTX, PYPL, and VIAB.

UBS lowered its price target on UTX to $115 from $118, while Credit Suisse cut its price target to $109 from $111. Nevertheless, the stock is up 0.4% at $100.50, thanks to a bullish bias in the broader equities market. Longer term, shares of United Technologies Corporation are up 10% year-over-year. Options traders, meanwhile, have been buying to open puts over calls at a faster-than-usual clip in recent weeks. UTX's 10-day put/call volume ratio of 0.93 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 73rd annual percentile.

PYPL is down 1.4% at $40.15 -- testing its mettle atop the round $40 mark, a previous level of resistance that has more recently served as support. Sparking the negative price action is a downgrade to "hold" from "buy" at Canaccord Genuity, which also cut its price target to $40 from $45. Specifically, the brokerage firm said increased competition from Apple Inc. (NASDAQ:AAPL) and Android Pay could keep total payment volume (TPV) "growth on a path of gentle deceleration" -- a stark contrast to Craig-Hallum's recent take. Most analysts are split when it comes to the stock, which is up 11% year-to-date. Heading into the week, Paypal Holdings Inc had 16 "buy" or better ratings in its corner, compared to 10 "holds" and three "sell" or worse suggestions.

Stifel cut its outlook for VIAB to "hold" from "buy" and its price target to $38 from $49, sending the shares down 2.1% to trade at $36.21. More broadly speaking, VIAB has shed nearly 12% in 2016, with rally attempts repeatedly rejected near the $46 level. Should the shares of Viacom, Inc. continue to struggle, more negative analyst attention could be on the horizon. The stock's consensus 12-month price target of $46.38 stands at a 28% premium to current trading levels, leaving the door wide open for more price-target cuts to come down the pike.

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