Analyst Downgrades: Juniper Networks, Oceaneering

Analysts downwardly revised their ratings on Juniper Networks, Inc. (JNPR), Oceaneering International (OII), and Transocean LTD (RIG)

by Alex Eppstein

Published on Jan 12, 2015 at 9:23 AM
Updated on Jul 2, 2020 at 1:24 PM

Analysts are weighing in today on network infrastructure expert Juniper Networks, Inc. (NYSE:JNPR), as well as energy names Oceaneering International (NYSE:OII) and Transocean LTD (NYSE:RIG). Here's a quick roundup of today's bearish brokerage notes on JNPR, OII, and RIG.

  • Buckingham cut its rating on JNPR to "neutral" from "buy." On the charts, the stock has outperformed the broader S&P 500 Index (SPX) by more than 10 percentage points over the last two months -- powered recently by unsubstantiated buyout rumors. Longer term, however, Juniper Networks, Inc. has underperformed, sitting slightly lower on a year-over-year basis to rest at $23.05. Taking a step back, the brokerage bunch is tilted in a skeptical direction, with 64% of covering analysts sporting tepid "hold" recommendations. What's more, JNPR's consensus 12-month price target of $22.75 is below the stock's current price.

  • Goldman Sachs reduced its oil-price forecast earlier, and likewise slashed its 12-month price targets on a number of energy stocks. In particular, the brokerage firm lowered its target price on OII by $10 to $64, and removed the stock from its "conviction" list -- but left its "buy" opinion unchanged. Technically speaking, the shares have followed the energy sector lower, down nearly 28% year-over-year to trade at $55.60. Amid this downtrend, options traders have been upping the bearish ante on Oceaneering International. During the last four weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 14.22 puts for every call. Short sellers have followed suit, with short interest levels ramping up 47.1% during the most recent reporting period. Ahead of the bell, the equity is pointed 1.8% lower.

  • Sector peer RIG has fared even worse on the charts, losing 66.8% of its value in the last 12 months to perch at $16.10. This is just a chip-shot away from the security's 19-year low of $15.80, touched last Friday. The downtrend could continue today -- the shares are 2% lower in electronic trading -- following a price-target cut to $12 from $13 at Goldman Sachs. This pessimism is more of the same for Transocean LTD. All 16 analysts covering the shares have doled out a "hold" or worse opinion. What's more, RIG's 50-day ISE/CBOE/PHLX put/call volume ratio of 2.12 ranks in the 86th percentile of its annual range. In other words, traders have bought to open puts over calls at a faster-than-usual pace in recent months.

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