Analyst Downgrades: Barrick Gold, Keurig, and Pandora

Analysts downwardly revised their ratings on ABX, GMCR, and P

by Alex Eppstein

Published on Nov 24, 2014 at 9:28 AM
Updated on Jul 2, 2020 at 1:34 PM

Analysts are weighing in today on precious metals producer Barrick Gold Corporation (USA) (NYSE:ABX), coffee concern Keurig Green Mountain Inc (NASDAQ:GMCR), and Internet radio issue Pandora Media Inc (NYSE:P). Here's a quick roundup of today's bearish brokerage notes on ABX, GMCR, and P.

  • Raymond James weighed in on a number of mining issues, including ABX, where the brokerage firm cut its price target to $17 from $18, and underscored its "market perform" rating. On the charts, the shares are down more than 27% year-to-date, and have seen a recent rebound contained by their descending 40-day moving average. Not surprisingly, the brokerage crowd is pretty united in its skeptical stance toward Barrick Gold Corporation (USA). Specifically, 15 of the 17 analysts following the security have assigned it a "hold" or "strong sell" recommendation, mirroring the recent pessimism noted in ABX's options pits. On Friday, ABX settled at $12.85.

  • GMCR was started with a "neutral" rating at Longbow Research, despite the stock more than doubling in value year-over-year to trade at $140.37. Late last week, though, the equity plummeted below its previously supportive 40-day moving average, following a disappointing current-quarter forecast. This pullback is likely being cheered in the options pits, as Keurig Green Mountain Inc's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.94 sits above 73% of other readings taken in the last year. However, it's possible some of these bearish positions may have been initiated by shareholders seeking a pre-earnings hedge -- a smart move, given the post-event sell-off.

  • Finally, P saw its price target slashed by $10 to $35 at Pacific Crest -- though the brokerage firm reiterated its "outperform" rating. Technically speaking, it's been a tough year for Pandora Media Inc, which has lost 27% of its value to rest at $19.40. In fact, during the past three months, the stock has lagged the broader S&P 500 Index (SPX) by 30 percentage points. Inexplicably, 72% of analysts covering the shares maintain a "buy" or better assessment, compared to six "holds" and one "strong sell." Plus, P's consensus 12-month price target of $30.61 stands about 58% above current trading levels. In other words, the equity is at risk of getting hit with additional price-target reductions and/or downgrades.

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