Analyst Downgrades: Abercrombie, Chipotle, Shake Shack

Analysts downwardly revised their ratings on Abercrombie & Fitch Co. (ANF), Chipotle Mexican Grill, Inc. (CMG), and Shake Shack Inc (SHAK)

Feb 9, 2015 at 9:21 AM
facebook X logo linkedin


Analysts are weighing in today on teen apparel destination Abercrombie & Fitch Co. (NYSE:ANF), as well as restaurant chains Chipotle Mexican Grill, Inc. (NYSE:CMG) and Shake Shack Inc (NYSE:SHAK). Here's a quick roundup of today's bearish brokerage notes on ANF, CMG, and SHAK.

  • ANF was downgraded to the equivalent of a "sell" rating at BofA-Merrill Lynch and Wunderlich Securities, with the latter also slashing its price target to $17 from $30. As such, the shares -- which have already dropped 25.7% year-over-year to trade at $25.78 -- are sitting 5.7% lower ahead of the bell. This bearish brokerage attention is more of the same for Abercrombie & Fitch Co. Seventeen out of the 24 analysts tracking the stock have doled out a "hold" opinion, compared to just seven "buy" or better recommendations.

  • Citigroup cut its price target on CMG to $782 from $809, despite the equity's more than 20% year-over-year advance to perch at $659.92. This negative note follows news that the company's Twitter Inc (NYSE:TWTR) account was hacked Sunday morning. Taking a step back, despite last week's earnings-induced drop, the stock has been a long-term technical outperformer, and options traders see more upside ahead. Specifically, Chipotle Mexican Grill, Inc.'s 50-day call/put volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) checks in at 1.09 -- just 1 percentage point from a 12-month high.

  • Wall Street newcomer SHAK was started with an "underperform" rating at Longbow Research. The brokerage firm also doled out a $21 price target, which stands at a nearly 50% discount to the current price of $41.96. Since an impressive public debut less than two weeks ago, Shake Shack Inc has struggled, slipping 8.6% from its initial closing price. In fact, since topping out at $52.50 on their first day of trading, the shares haven't come close to sniffing the $50 level again. Ahead of the bell, SHAK is 4.8% lower.
 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!

 

 
 
 


 
 

Rainmaker Ads CGI