AAL

Analyst Downgrades: SanDisk, MannKind, and ArcelorMittal

Analysts downwardly revised their ratings on SanDisk Corporation (SNDK), MannKind Corporation (MNKD), and ArcelorMittal SA (ADR) (MT)

Apr 16, 2015 at 9:22 AM
facebook X logo linkedin


Analysts are weighing in on data storage solutions specialist SanDisk Corporation (NASDAQ:SNDK), biopharmaceutical firm MannKind Corporation (NASDAQ:MNKD), and mining magnate ArcelorMittal SA (ADR) (NYSE:MT). Here's a quick roundup of today's bearish brokerage notes on SNDK, MNKD, and MT.

  • True to form, SNDK is bracing for an 8% plunge out of the gate, after the firm posted lower-than-expected first -quarter earnings, and forecast a drop in full-year revenue for the first time in three years. In order to reduce costs, SanDisk Corporation said it will cut roughly 5% of its workforce. Wall Street was quick to weigh in on SNDK following last night's results, with the stock receiving a slew of bearish brokerage notes. Included in the bunch were downgrades from BTIG (to "sell") and Credit Suisse (to "neutral"), as well as price-target cuts from Baird (to $60) and Nomura (to $50). Jefferies, meanwhile, raised its price target to $82 from $77, representing expected upside of 15.3% to last night's close at $71.12. Today's projected price move is just more of the same for a stock that's shed north of 27% in 2015, and should the shares continue this path lower, another round of downbeat analyst attention could be on the horizon. Currently, 62% of those covering SNDK maintain a "buy" or better rating.

  • RBC reduced its price target on MNKD by $3 to $10 -- but kept its "outperform" rating -- although this new target still rests at an 89.3% premium to Wednesday's settlement at $5.28. On the charts, the security has been hovering around its year-to-date breakeven line in recent weeks, and option traders have been rolling the dice on a breakout. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), MannKind Corporation's 10-day call/put volume ratio of 9.57 ranks in the 85th annual percentile. Simply stated, calls have been bought to open over puts with more rapidity just 15% of the time within the past year.

  • MT is pointed 1.4% lower in electronic trading -- and on track to test its footing in double-digit territory -- after Goldman Sachs reduced its price target on the shares to 7.30 euros from 8 euros, and reiterated its "sell" recommendation. On the charts, the equity has been a long-term laggard, shedding 37% over the past 52 weeks to trade at $10.19. Option players have shown a distinct preference for calls over puts, however. For starters, MT's 10-day ISE/CBOE/PHLX call/put volume ratio of 41.50 rests 4 percentage points from a 52-week peak. Additionally, ArcelorMittal SA's Schaeffer's put/call open interest ratio (SOIR) of 0.63 sits lower than 95% of all comparable readings taken in the past 12 months. In other words, short-term speculators are more call-heavy than usual toward MT.
 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.