Analyst Downgrades: SanDisk Corporation, Exact Sciences Corporation, and Royal Caribbean Cruises Ltd.

Analysts downwardly revised their ratings on SanDisk Corporation (SNDK), EXACT Sciences Corporation (EXAS), and Royal Caribbean Cruises Ltd (RCL)

by Griffin Kruse

Published on Mar 26, 2015 at 9:27 AM
Updated on Apr 20, 2015 at 5:32 PM

Analysts are weighing in on data solutions specialist SanDisk Corporation (NASDAQ:SNDK), molecular diagnostics firm EXACT Sciences Corporation (NASDAQ:EXAS), and cruise line Royal Caribbean Cruises Ltd (NYSE:RCL). Here's a quick roundup of today's bearish brokerage notes on SNDK, EXAS, and RCL.

  • SNDK lowered its revenue guidance for the current quarter and fiscal year, due to weak sales, product delays, and lower prices, with CEO Sanjay Mehrotra saying, "We are disappointed with our financial outlook." In response, Stifel cut its price target on SanDisk Corporation by $6 to $84 while reiterating its "buy" opinion, while BTIG cut its rating to "neutral" from "buy." Today, the shares are pointed 14.1% lower in electronic trading, which will steepen SNDK's 17.2% year-to-date loss. On the flip side, the brokerage bunch is bullish on the equity, as 72% of covering analysts rate the stock a "buy" or better, with no "sell" or worse recommendations to be found. Additional downgrades could create headwinds for SNDK, which settled at $81.17 yesterday.

  • Goldman Sachs downgraded EXAS to "neutral" from "buy" late last night, with the brokerage firm also lowering its price target on the equity by $5 to $24. As a result, EXACT Sciences Corporation -- which closed at $23.06 last night -- is down 5% in pre-market trading, which will add to a roughly 16% year-to-date deficit. Sentiment in the options pits has been bullish, as EXAS' 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 7.93 ranks higher than 95% of all equivalent readings taken over the past year. Meanwhile, a staggering 32.9% of the security's available float is sold short, which would take 12.5 sessions to cover, at average trading volumes.

  • RCL is pointed 1.9% lower ahead of the bell, after Deutsche Bank cut its price target by $2 to $95 while underscoring its "buy" opinion. The revision mirrors Royal Caribbean Cruises Ltd's recent price action, as the shares are down about 8.7% year-to-date to close yesterday at $75.30. However, calls have been prevalent in the options pits, as RCL's 10-day ISE/CBOE/PHLX call/put volume ratio of 6.11 sits in the 91st percentile of its annual range. The brokerage bunch is mostly bullish on the stock as well, considering that 77% of covering analysts rate the stock a "buy" or better, with no "sell" or worse ratings in sight.

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