Analyst Downgrades: Cliffs, Ruckus Wireless, Michael Kors

Analysts downwardly revised their ratings on Cliffs Natural Resources Inc (CLF), Ruckus Wireless Inc (RKUS), and Michael Kors Holdings Ltd (KORS)

by Karee Venema

Published on Apr 13, 2015 at 9:30 AM
Updated on Jun 29, 2020 at 11:14 AM

Analysts are weighing in today on mining magnate Cliffs Natural Resources Inc (NYSE:CLF), Wi-Fi solutions specialist Ruckus Wireless Inc (NYSE:RKUS), and upscale accessories designer Michael Kors Holdings Ltd (NYSE:KORS). Here's a quick roundup of today's bearish brokerage notes on CLF, RKUS, and KORS.

  • Citigroup followed in the footsteps of BMO, and cut its price target on CLF by $2 to $4.50. Technically speaking, the shares have surrendered more than three-quarters of their value over the past 12 months, and closed last week at $4.87. Not surprisingly, sentiment is tilted toward the skeptical side. Short interest, for example, jumped 9.1% in the latest reporting period, and now accounts for 42.3% of the equity's available float. Meanwhile, of the 15 analysts covering Cliffs Natural Resources Inc, 13 maintain a "hold" or worse rating.

  • Goldman Sachs removed RKUS from its "conviction buy" list, sending the shares down nearly 3% in electronic trading. Since hitting a year-to-date low of $9.11 in mid-January, shares of RKUS have rallied more than 42%, and settled Friday at $12.95 -- their highest weekly close since late October. Meanwhile, on the options front, short-term speculators are more put-heavy than usual toward Ruckus Wireless Inc, per the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.33, which ranks higher than 78% of similar readings taken in the past year. In the front-month series, specifically -- which expires at this Friday's close -- peak put open interest is found at the April 12.50 strike, where 1,352 contracts are currently in residence.

  • Baird slapped KORS with a price-target cut to $80 from $85, although this still represents a 23.8% premium to Friday's close at $64.60. On the charts, the security has put in a dismal performance, shedding nearly 35% since tagging an annual high of $98.96 in late May. More recently, the shares have spent 2015 churning below their 10-week moving average. Should Michael Kors Holdings Ltd continue to struggle, more bearish brokerage notes may be on the horizon -- which could translate into a fresh wave of selling pressure. Currently, 41% of analysts maintain a "buy" or better rating on the equity, while the average 12-month price target of $86.56 rests in territory not charted since last July.

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