Analyst Downgrades: Pandora Media, Yelp, and Gilead

Analysts downwardly revised their ratings on Pandora Media Inc (P), Yelp Inc (YELP), and Gilead Sciences, Inc. (GILD)

Feb 6, 2015 at 9:19 AM
facebook twitter linkedin


Analysts are weighing in today on Internet radio issue Pandora Media Inc (NYSE:P), online review firm Yelp Inc (NYSE:YELP), and biopharmaceutical stock Gilead Sciences, Inc. (NASDAQ:GILD). Here's a quick roundup of today's bearish brokerage notes on P, YELP, and GILD.

  • To the delight of yesterday's big options bear, P is bracing for a 20% plunge out of the gate, after a fourth-quarter revenue miss was met with a round of bearish brokerage attention. CRT Capital was among the many weighing in on the stock, slashing its price target by $10 to $16, and underscoring its "fair value" rating. Wells Fargo and Raymond James were also included in the bunch -- both downgrading P to "market perform" from "outperform." Technically speaking, the equity has been charting a path lower for some time -- resulting in a nearly 43% year-over-year loss to trade at $18.41 -- and short sellers have been rolling the dice on more downside. Short interest ramped up 11.6% in the latest reporting period, and now accounts for 15% of Pandora Media Inc's available float.

  • A number of brokerage firms chimed in on YELP, after the company posted its first-ever profit in the fourth quarter, but said user growth slowed. Evercore ISI, for example, cut its price target by $11 to $49, and reiterated its "hold" rating, while B. Riley reduced its outlook to "sell" from "neutral." Against this backdrop, shares of YELP are down 16% in electronic trading -- and poised to move into the red on a year-to-date basis. Should the equity extend this negative post-earnings price action, another round of downgrades and/or price-target cuts -- or an unwinding of optimism in the options pits -- could be on the horizon. Currently, 70% of covering analysts maintain a "buy" or better rating on Yelp Inc, while the average 12-month price target of $80.68 stands at a 40% premium to last night's close at $57.47.

  • It's been a rough week for GILD, which is down 4.7% from last Friday's close to trade at $99.90. The equity is on pace to extend these losses in today's trading, after Credit Suisse downgraded GILD to "neutral" from "outperform," and reduced its price target by $15 to $115, citing Tuesday's dreary revenue outlook. Longer term, though, GILD still remains more than 30% higher year-over-year, and most analysts remain in the bullish corner. Of the 17 brokerage firms following the stock, 13 maintain a "buy" or better rating, versus three "holds" and one "sell." Plus, the consensus 12-month price target of $120.13 for Gilead Sciences, Inc. stands in territory yet to be charted.
 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners