Analysts downwardly revised their ratings and price targets on AKAM, AAL, and AMGN stocks
Analysts are weighing in on cloud stock Akamai Technologies, Inc. (NASDAQ:AKAM), transportation giant American Airlines Group Inc (NASDAQ:AAL), and biotech Amgen, Inc. (NASDAQ:AMGN). Here's a quick roundup of today's bearish brokerage notes on shares of AKAM, AAL, and AMGN.
Akamai Technologies Stock Tanks on Downgrade
Morgan Stanley downgraded AKAM stock's rating to "underweight" from "equal weight," and also slashed its price target by $14 to $54. The bearish note hits ahead of the company's earnings report, due after the close next Tuesday. On the charts, the shares of Akamai Technologies, Inc. are down 4.7% at $59.29, bringing their 2017 deficit to 11.1%. Understandably, options traders have been placing bearish bets over bullish at an accelerated clip. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AKAM stock has amassed a 10-day put/call volume ratio of 1.11 -- in the 81st annual percentile.
American Airlines Stock Sinks Post-Earnings
AAL has plunged 7.8% to $42.78, after the company deferred delivery of several jets -- a sign of an oversupplied market. This news is overshadowing American Airlines Group Inc's better-than-expected earnings, and has the shares down about 8.1% year-to-date. Headwinds could grow even stronger if analysts follow the bearish lead of J.P. Morgan Securities, which downgraded the stock's rating to "neutral" from "overweight," and cut its price target to $52 from $59. After all, despite its underperformance, AAL still boasts "strong buy" assessments from 42% of covering analysts.
Analysts Cream Amgen After Earnings
Following a mixed earnings report, AMGN stock was hit with price-target reductions at Barclays, BMO, and Leerink, with the latter saying the company is "more than ever in need of ... a significant acquisition." As such, the shares are off 2.5% at $160.44, and have nearly closed their bullish gap from an early February earnings reaction. It seems some bears hit the exits too soon on Amgen, Inc. Specifically, short interest fell 17.1% during the two most recent reporting periods, leaving just 1.1% of AMGN's float sold short.