Analyst Downgrades: Microsoft, United Technologies

Analysts downwardly revised their ratings on Microsoft Corporation (MSFT), United Technologies Corporation (UTX), and FXCM Inc (FXCM)

Jan 27, 2015 at 9:28 AM
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Analysts are weighing in today on software giant Microsoft Corporation (NASDAQ:MSFT), tech conglomerate United Technologies Corporation (NYSE:UTX), and forex issue FXCM Inc (NYSE:FXCM). Here's a quick roundup of today's bearish brokerage notes on MSFT, UTX, and FXCM.

  • MSFT is reeling this morning, as a lackluster turn in the earnings confessional was met with a number of downbeat analyst notes. Specifically, no fewer than nine brokerage firms reduced their price targets, while Citigroup, J.P. Morgan Securities, and Nomura each downgraded the stock. Although Microsoft Corporation shares have gained more than 30% year-over-year -- as of last night's close at $47.01 -- they're poised to drop 8.6% out of the gate. While shareholders can't be happy with these developments, this recent crop of option bears is likely in celebration mode.

  • Fellow Dow component UTX posted disappointing fourth-quarter revenue last night and also cut its full-year forecast. Adding insult to injury, RBC trimmed its price target to $125 from $128, and Citigroup reduced its target to $136 from $139 -- though both firms reiterated the equivalent of "buy" ratings. On the charts, United Technologies Corporation has rallied since hitting an annual low of $97.30 in mid-October to trade at $118.75. Moreover, last Friday, the stock touched a record high of $120.95. However, ahead of the bell, UTX is pointed 2.3% lower. On the sentiment front, traders have grown bullish in recent months. During the last 10 weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), UTX has tallied a call/put volume ratio of 3.60 -- just 8 percentage points from an annual high.

  • Finally, FXCM has been swooning on a recent currency decision by the Swiss National Bank, losing more than 85% of its value over the last two weeks . Additional losses could be in store, following a price-target cut to $1 from $3 at Barclays -- which also reiterated its "underweight" opinion. Ahead of the bell, in fact, the stock is pointed 4.5% lower. Elsewhere, short sellers have taken an interest in FXCM Inc, with roughly 15% of its float sold short. At the equity's typical daily trading rate, it would take about three weeks to buy back these bearish bets.

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