Analyst Downgrades: Pandora Media, Inc., Stratasys, Ltd., and Luminex Corporation

Analysts are weighing in today on Pandora Media Inc (P), Stratasys, Ltd. (SSYS), and Luminex Corporation (LMNX)

by Karee Venema

Published on Feb 3, 2015 at 9:28 AM
Updated on Apr 20, 2015 at 5:32 PM

Analysts are weighing in today on streaming music giant Pandora Media Inc (NYSE:P), 3-D printing specialist Stratasys, Ltd. (NASDAQ:SSYS), and biological testing firm Luminex Corporation (NASDAQ:LMNX). Here's a quick roundup of today's bearish brokerage notes on P, SSYS, and LMNX.

  • J.P. Morgan Securities cut its price target on P to $34 from $35 -- and underscored its "overweight" rating -- although this new forecast is double last night's close at $16.95. Technically speaking, the stock has been on a steady downtrend since topping out at a record peak of $40.44 last March, down 58%. Should Pandora Media Inc turn in a poorly received earnings report after this Thursday's close, another round of bearish brokerage notes could be on the horizon. Currently, 77% of covering analysts maintain a "buy" or better rating, while the average 12-month price target of $28.78 stands at a 70% premium to P's present perch.

  • SSYS is bracing for a 28% drop out of the gate -- and a move into annual-low territory -- after another downwardly revised fourth-quarter profit estimate and weak fiscal 2015 forecast was met with a round of bearish analyst attention. J.P. Morgan Securities, for example, slashed its price target by $43 to $70, while Brean Capital reduced its outlook to "hold" from "buy." Since hitting its most recent high of $125 in early November, the stock has surrendered 36% under the weight of its 40-day moving average, and settled last night at $80.08. This has more than likely been music to the ears of short sellers. Short interest rose 4.4% in the latest reporting period, and now accounts for more than one-fifth of Stratasys, Ltd.'s available float.

  • LMNX received price-target cuts from Leerink (to $18), Jefferies (to $17), and Wedbush (to $18), after the firm offered up a lower-than-expected 2015 revenue outlook. Since being swiftly rejected by the round-number $20 mark in mid-January, shares of LMNX have shed 12%, and closed last night at $17.68. Options traders have kept the faith, though, and -- at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- have bought to open 25 calls for every put over the past 10 sessions. Echoing this call-skewed trend is Luminex Corporation's Schaeffer's put/call open interest ratio (SOIR) of 0.87, which ranks lower than 76% of similar readings taken in the past year. Simply stated, short-term speculators are more call-heavy than usual.

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