Analyst Downgrades: Micron Technology, Inc., Infinera Corporation, and Procter & Gamble Co

Analysts downwardly revised their ratings on Micron Technology, Inc. (MU), Infinera Corp. (INFN), and Procter & Gamble Co (PG)

by Griffin Kruse

Published on Apr 2, 2015 at 9:22 AM
Updated on Apr 20, 2015 at 5:32 PM

Analysts are weighing in on semiconductor firm Micron Technology, Inc. (NASDAQ:MU), IT equipment provider Infinera Corp. (NASDAQ:INFN), and blue-chip Procter & Gamble Co (NYSE:PG). Here's a quick roundup of today's bearish brokerage notes on MU, INFN, and PG.

  • MU posted fiscal second-quarter earnings that beat the Street's predictions, but forecast lower current-quarter revenue, prompting no fewer than eight brokerage firms to revise their ratings on the equity. The lowest revisions came from Nomura, which cut its price target to $28 from $30 while reiterating a "neutral" opinion, and Morgan Stanley, which reduced its price target to $30 from $36 while keeping its "equal weight" rating. At last check, the shares of Micron Technology, Inc. -- which closed at $27.13 yesterday -- were up 1.1% in electronic trading, combating a 22.5% year-to-date deficit. Sentiment in the options pits has been bearish, as MU's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.59 ranks in the 89th percentile of all equivalent readings taken over the past year.

  • Goldman Sachs lowered its rating on INFN to "neutral," sending the shares down 3.1% in pre-market trading. The downgrade is somewhat surprising, considering that the shares of Infinera Corp. are up 31.3% year-to-date to finish yesterday at $19.33. What's more, the stock notched a seven-year high of $20.23 on Tuesday. Calls have been popular in the options pits, as INFN's 10-day ISE/CBOE/PHLX call/put volume ratio of 276.06 stands in the 93rd percentile of its annual range. Echoing that, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.10 sits higher than just 3% of all other readings from the past year, suggesting short-term speculators have rarely been more call-biased.

  • PG is pointed 0.4% lower ahead of the bell, after BMO reduced its rating on the equity to "market perform" from "outperform" -- and cut its price target to $84. Procter & Gamble Co shares have shed 12.3% from their Dec. 24 all-time high of $93.89 to close yesterday at $82.32. As such, sentiment in the options pits has been pessimistic -- over the past 10 days at the ISE/CBOE/PHLX, 1.85 puts have been bought to open for every call, which is a higher ratio than 88% of all similar annual readings. Likewise, the stock's SOIR of 1.99 is higher than all but 1% of readings over the past year.

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