Analyst Downgrades: Coupons.com, Netflix, Transocean

Analysts downwardly revised their ratings on Coupons.Com Inc (COUP), Netflix, Inc. (NFLX), and Transocean LTD (RIG)

by Alex Eppstein

Published on Feb 10, 2015 at 9:21 AM
Updated on Jul 2, 2020 at 1:13 PM

Analysts are weighing in today on digital promotion platform Coupons.Com Inc (NYSE:COUP), streaming content provider Netflix, Inc. (NASDAQ:NFLX), and offshore driller Transocean LTD (NYSE:RIG). Here's a quick roundup of today's bearish brokerage notes on COUP, NFLX, and RIG.

  • The brokerage bunch is pouncing on COUP, after the company reported disappointing fourth-quarter figures and forward guidance. Specifically, RBC and Craig Hallum each slashed their price targets to $13 (from $18 and $24, respectively), with the latter also downgrading the stock to "hold" from "buy." As a result, Coupons.Com Inc is staring at a 35% pre-market deficit -- which would add to its 18.3% year-to-date loss, as of last night's close at $14.51. Should this technical trend continue, additional bearish notes could be forthcoming. After all, each of the analysts tracking COUP has doled out a "strong buy" recommendation, while its average 12-month price target of $21.75 stands at a nearly 50% premium to Monday's closing price.

  • Despite debuting its service in Cuba yesterday, NFLX was hit with a price-target cut to $509 from $511 at J.P. Morgan Securities -- which nonetheless reiterated its "overweight" opinion. The shares have had a strong run since reporting impressive quarterly results in late January, bringing their 2015 advance to nearly 30%. Options traders see more upside ahead, as well. Netflix, 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 1.04 -- in the 80th percentile of its annual range. NFLX closed at $443.07 yesterday.

  • Finally, RIG is off 2.3% ahead of the open, following a downgrade to "underperform" from "neutral" at Credit Suisse, which expects the company to stack a number of rigs over the coming years. It's been a rough year for the stock, which has declined nearly 52% over the past 12 months to trade at $20.44. However, it should be noted that Transocean LTD has also rallied 41% since bottoming at a nearly 20-year low of $14.50 in mid-January, amid a rebound in crude oil. Short sellers remain unconvinced, though. During the past two reporting periods, short interest on RIG increased 20.8%, and now makes up 30.6% of its float -- which would take more than seven sessions to buy back, at typical daily trading levels. This mirrors the pessimism recently observed among the analyst crowd.

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