Analyst Downgrades: Amazon, BlackBerry, Michael Kors

Analysts downwardly revised their ratings on Amazon.com, Inc. (AMZN), BlackBerry Ltd (BBRY), and Michael Kors Holdings Ltd (KORS)

by Josh Selway

Published on Mar 9, 2015 at 9:36 AM
Updated on Jul 2, 2020 at 1:02 PM

Analysts are weighing in today on online marketplace Amazon.com, Inc. (NASDAQ:AMZN), smartphone maker BlackBerry Ltd (NASDAQ:BBRY), and upscale apparel company Michael Kors Holdings Ltd (NYSE:KORS). Here's a quick roundup of today's bearish brokerage notes on AMZN, BBRY, and KORS.

  • AMZN is 0.5% lower at $377.75 out of the gate, after SunTrust Robinson Humphrey cut its outlook on the shares to "neutral" from "buy." Most analysts are in the bulls' corner, with 15 covering brokerage firms calling Amazon.com, Inc. a "buy" or better, and the remaining 13 deeming it a "hold." Option speculators have also adopted a positive outlook on an equity that's topped the S&P 500 Index (SPX) by 26 percentage points in the past two months, and touched an annual high of $389.37 in late February. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AMZN's 10-day call/put volume ratio of 1.40 outranks 84% of all such readings from the past year, meaning calls have been bought to open over puts at a faster-than-usual rate.

  • Goldman Sachs weighed in on BBRY this morning, reducing its outlook to "sell" while cutting its price target by $1 to $9, and warning of potentially wider losses in 2016. BlackBerry Ltd is used to the skepticism, though, as 16 out of 19 analysts rate it a "hold" or worse. What's more, nearly 19% of BBRY's float is sold short, representing over two weeks' worth of trading, at typical daily volumes. In spite of all the pessimism, the shares have shown technical strength, outperforming the SPX during the past month. The stock was last seen 3.2% lower at $10.33, but could find a familiar foothold atop its 200-day moving average.

  • KORS is down 2.2% this morning at $64.50 -- and touched an annual low of $64.01 right out of the gate -- after Sterne Agee cut its price target on the shares to $72 from $76, while keeping its "neutral" rating. The equity has struggled on the charts, dropping over 34% year-over-year, and put buyers have responded recently. Michael Kors Holdings Ltd's 10-day ISE/CBOE/PHLX put/call volume ratio of 1.75 is only 8 percentage points from an annual high -- a major shift from what was previously seen in KORS' options pits. Meanwhile, more negative analyst attention could exacerbate selling pressure on the stock, which boasts 10 "buy" or better ratings, compared to 11 lukewarm "holds" and just one "sell."

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