Analyst Downgrades: HP, Marvell, Boston Beer Company

Analysts downwardly revised their ratings on Hewlett-Packard Company (HPQ), Marvell Technology Group Ltd. (MRVL), and Boston Beer Co Inc (SAM)

Feb 25, 2015 at 9:10 AM
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Analysts are weighing in today on computer concern Hewlett-Packard Company (NYSE:HPQ), chipmaker Marvell Technology Group Ltd. (NASDAQ:MRVL), and craft brewer Boston Beer Co Inc (NYSE:SAM). Here's a quick roundup of today's bearish brokerage notes on HPQ, MRVL, and SAM.

  • HPQ is down 6.5% in electronic trading, after the firm's worse-than-expected fiscal first-quarter revenue and downwardly revised current-quarter and full-year earnings outlook triggered a wave of price-target cuts. RBC Capital, for example, reduced its price target by $1 to $38, saying, "HP disappointed on multiple fronts this quarter, leaving us concerned about the future revenue and margin trajectory." Also weighing in was Cantor, which lowered its price target by $4 to $35, representing a discount to last night's close at $38.49. Today's projected price move will more than likely be a disappointment to options traders, who were upping the bullish ante ahead of earnings, and could have Hewlett-Packard Company testing support at its 40-week moving average -- a trendline that has lifted the stock higher for the past two years.

  • After boosting its price target on MRVL to $17 on Friday, Stifel cut its outlook on the stock to "hold" from "buy" overnight. Technically speaking, the equity has done well in 2015, boasting an 11.6% gain. What's more, the security hit a two-year post-earnings high of $16.78 last week, but was more recently seen lingering at $16.18. Meanwhile, on the sentiment front, options bears have been increasing their presence of late. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Marvell Technology Group Ltd.'s 10-day put/call volume ratio has jumped to 0.42 from 0.02 over the past two weeks, with the current ratio ranking in the 79th annual percentile. Simply stated, puts have been bought to open over calls at a faster-than-usual clip.

  • SAM is bracing for a 13% drop out of the gate, following a fourth-quarter earnings miss and a lower-than-forecast full-year profit outlook. In response, Jefferies slashed its price target to $338 from $372. Additionally, Cowen and Company lowered its rating to "market perform" from "outperform," and cut its target price by $27 to $308. Heading into today's session, the security had been performing well on the charts, tacking on 48% since hitting its most recent low of $210.03 in early October to trade near $310.71. As such, today's anticipated bear gap should please one group of traders -- short sellers. Short interest surged 12% over the last two reporting periods, and now accounts for a healthy 11.2% of Boston Beer Co Inc's float.


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