Analyst Downgrades: FXCM, eBay, Potash Corporation

Analysts downwardly revised their ratings on FXCM Inc (FXCM), eBay Inc (EBAY), and Potash Corp./Saskatchewan (USA) (POT)

Jan 20, 2015 at 9:28 AM
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Analysts are weighing in today on forex issue FXCM Inc (NYSE:FXCM), online auctioneer eBay Inc (NASDAQ:EBAY), and fertilizer firm Potash Corp./Saskatchewan (USA) (NYSE:POT). Here's a quick roundup of today's bearish brokerage notes on FXCM, EBAY, and POT.

  • FXCM is set to resume trading today, after being halted last Friday in the wake of the Swiss National Bank fallout. However, it's not likely to be a good day for FXCM shareholders, with the stock down 90% in electronic trading as details emerge over its bailout package from Leucadia National Corp. (NYSE:LUK). Heading into today, the security was already staring at a 23.8% loss to trade at $12.63, but a number of brokerage firms are eyeing record-low territory for FXCM Inc. Specifically, KBW slashed its price target by $5.50 to $4.50, while Credit Suisse cut its target price to $3.75 from $4. In addition, J.P. Morgan Securities downgraded FXCM to "neutral" from "overweight." More bearish brokerage notes could be on the horizon, considering the equity's average 12-month price target of $17.65 stands at a steep 40% premium to last week's closing price.

  • Ahead of EBAY's fourth-quarter earnings report -- slated for release after tomorrow's close -- the stock received price-target cuts at Piper Jaffray (to $55) and Benchmark (to $64), with the brokerage firms underscoring their respective "neutral" and "buy" ratings. Since hitting its most recent high of $57.94 on Dec. 22, the security has been on the decline. Specifically, shares of EBAY are down 7.4% to $53.66, but appear to have found a foothold atop their 200-day moving average, currently located at $52.94. Meanwhile, on the sentiment front, EBAY's Schaeffer's put/call open interest ratio (SOIR) of 0.39 ranks in the 16th annual percentile, meaning short-term speculators are more call-heavy than usual toward eBay Inc.

  • POT is trading higher ahead of the bell, as solid guidance from sector peer Mosaic Co (NYSE:MOS) overshadows a price-target cut to $35 from $36 and reiterated "hold" rating from Canaccord Genuity. On the charts, Potash Corp./Saskatchewan (USA) has found a recent level of support at its 60-day moving average, and closed Friday just north of here at $35.09. Option traders, however, have been betting on a breach of this trendline -- which served as resistance in July through mid-November of last year. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), POT's 10-day put/call volume ratio of 1.05 ranks in the bearishly skewed 84th annual percentile.

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