Analyst Downgrades: Alibaba Group Holding Limited, Delta Air Lines, Inc., and ON Semiconductor Corporation

Analysts downwardly revised their ratings on Alibaba Group Holding Ltd (BABA), Delta Air Lines, Inc. (DAL), and ON Semiconductor Corp (ONNN)

by Griffin Kruse

Published on Apr 1, 2015 at 9:26 AM
Updated on Apr 20, 2015 at 5:32 PM

Analysts are weighing in on online commerce giant Alibaba Group Holding Ltd (NYSE:BABA), airline concern Delta Air Lines, Inc. (NYSE:DAL), and semiconductor firm ON Semiconductor Corp (NASDAQ:ONNN). Here's a quick roundup of today's bearish brokerage notes on BABA, DAL, and ONNN.

  • Oppenheimer lowered its price target on BABA by $7 to $105, while keeping its "outperform" opinion. Alibaba Group Holding Ltd also announced today that is internally promoting Yu Yongfu from manager of its mobile business unit to president of the firm's online marketing division, Alimama. At last check, the shares of BABA -- which are nearly 20% in the red year-to-date -- were little changed in premarket trading. However, the stock is up 4% from its March 3 all-time low of $80.03 to finish yesterday at $83.24. The brokerage bunch has been unanimously bullish on the security, as all 22 covering analysts rate the stock a "buy" or "strong buy."

  • Deutsche Bank weighed in on a number of airlines this morning, downgrading its rating of DAL to "hold" from "buy" while cutting its price target by $10 to $50. On the charts, the shares of Delta Air Lines, Inc. have been sliding, down 11.9% from their Jan. 23 all-time high of $51.06 to close yesterday's session at $44.96. What's more, the shares are pointed 2.3% lower in electronic trading. Despite the stock's recent weakness, the brokerage bunch has been extremely optimistic on the equity, as all 12 covering analysts rate it a "strong buy." Plus, DAL's consensus 12-month price target of $64.09 stands in uncharted territory, leaving the door wide open for a round of downgrades and/or price-target cuts to create headwinds.

  • Goldman Sachs revised its opinion on ONNN to "sell" from "neutral" -- and decreased its price target by $2 to $10.50 -- sending the shares down 5.4% in premarket trading. Prior to today's dip, ON Semiconductor Corp has been ascending the charts, with the shares up 19.5% year-to-date to $12.11. Furthermore, the stock hit a 14-year high of $13.31 on March 2. Sentiment in the options pits has been bearish, though, as ONNN's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.90 ranks higher than 84% of all equivalent readings taken over the past year.

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