Analyst Update: Peabody Energy, Dunkin', Select Comfort

Analysts adjusted their ratings on Peabody Energy Corporation (BTU), Dunkin Brands Group Inc (DNKN), and Select Comfort Corp. (SCSS)

Jan 27, 2015 at 1:13 PM
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Analysts are weighing in today on coal issue Peabody Energy Corporation (NYSE:BTU), doughnut king Dunkin Brands Group Inc (NASDAQ:DNKN), and mattress expert Select Comfort Corp. (NASDAQ:SCSS). Here's a quick look at today's brokerage notes on BTU, DNKN, and SCSS.

  • BTU is down 4.5% this afternoon to $6.36, and touched a near 12-year low of $6.01, following a dismal demand outlook and subsequent price-target cut from Citigroup, which reduced its expectation to $14 from $18. This bad news is more of the same for the struggling equity, which has shed 62.5% over the past 52 weeks. Accordingly, bearish sentiment in the options pits is ramping up, with Peabody Energy Corporation's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.67 sitting 8 percentage points away from an annual pessimistic peak. Elsewhere, the brokerage bunch isn't as wary of BTU, with 53% of covering analysts rating the stock "buy" or better, and the average 12-month price target of $13.39 is more than twice BTU's current price. Additional price-target cuts and/or a round of downgrades could help push shares even lower.

  • After issuing lackluster guidance, the shares of DNKN have fallen 1.6% to $46.25 in intraday trading, despite receiving price-target hikes from two separate brokers. Specifically, Buckingham raised its target price $3 to $48 while reiterating a "neutral" rating, and Stephens raised its target $4 to $44 while reiterating an "equal weight" ranking. On the charts, Dunkin Brands Group Inc has advanced 8.4% year-to-date, sparking a wave of call buying in the options pits. DNKN's 50-day ISE/CBOE/PHLX call/put volume ratio of 10.71 reads higher than 96% of all similar readings taken in the past year. Short-term options bulls are paying a premium for their bets on DNKN, as the stock's Schaeffer's Volatility Index (SVI) of 30% registers in the 83rd percentile of its annual range.

  • SCSS is up 4.4% today -- bucking the broad-market trend -- and hit a fresh two-year high of $30.97, after Stifel raised its rating on the stock from "hold" to "buy." The positive price action is more of the same for the mattress maker, with the shares up over 84% year-over-year. Sentiment in the options pits is bullish, with Select Comfort Corp.'s 50-day ISE/CBOE/PHLX call/put volume ratio of 3.50 sitting 6 percentage points away from a yearly optimistic climax.

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