Analyst Downgrades: Zynga, Campbell Soup, ConAgra Foods

Analysts downwardly revised their ratings on Zynga Inc (ZNGA), Campbell Soup Company (CPB), and ConAgra Foods Inc (CAG)

by Alex Eppstein

Published on Feb 13, 2015 at 9:40 AM
Updated on Jul 2, 2020 at 1:12 PM

Analysts are weighing in today on mobile gaming issue Zynga Inc (NASDAQ:ZNGA), as well as food concerns Campbell Soup Company (NYSE:CPB) and ConAgra Foods Inc (NYSE:CAG). Here's a quick roundup of today's bearish brokerage notes on ZNGA, CPB, and CAG.

  • ZNGA has tumbled more than 14% out of the gate to trade at $2.28, as last night's fourth-quarter revenue miss and disappointing outlook prompted a round of bearish brokerage notes. Specifically, no fewer than six brokerage firms slashed their price targets on the stock -- the worst of which came from Janney, which reduced its target to $2.25 from $2.50. Longer term, Zynga Inc has had a rough go of it, shedding more than half of its value in the last 52 weeks. Not surprisingly, bearish betting is popular on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), where ZNGA's 10-day put/call volume ratio of 0.66 sits just 2 percentage points from a 12-month peak. Adding insult to injury, rival King Digital Entertainment PLC (NYSE:KING) is surging on an earnings beat and an upbeat reaction from analysts.

  • CPB is down 2.5% to trade at $46.52 this morning, after reducing its fiscal 2015 profit and sales guidance. Also, the shares saw their price target trimmed by $1 to $42 at J.P. Morgan Securities, which likewise reiterated its "underweight" opinion. Today's slide represents a change of pace for Campbell Soup Company, which was sitting on an 8.5% year-to-date lead as of last night's close. On the sentiment front, analysts have blazed a bearish path toward the equity, handing out 11 "hold" or worse ratings, compared to a single "strong buy." Additionally, CPB's consensus 12-month price target of $42.91 stands at a discount to the current price.

  • Finally, CAG has dropped 3.1% in early trading to hover around $35.29, after cutting its 2015 profit forecast and naming a new CEO. Also weighing on the stock is a price-target cut to $37 from $38 at J.P. Morgan Securities. On the charts, this morning's pullback has ConAgra Foods Inc sitting in the red on a year-to-date basis, as a recent round of short covering has failed to lift the security. Specifically, short interest plummeted 37.3% during the latest reporting period, and now represents just 1.3% of CAG's available float.

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