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.