Analyst Downgrades: Google Inc., Las Vegas Sands Corp., and Shake Shack Inc.

Analysts downwardly revised their ratings on Google Inc (NASDAQ:GOOGL), Las Vegas Sands Corp. (NYSE:LVS), and Shake Shack Inc (NYSE:SHAK)

by Alex Eppstein

Published on Apr 21, 2015 at 10:06 AM
Updated on Apr 21, 2015 at 10:12 AM

Analysts are weighing in today on Internet power Google Inc (NASDAQ:GOOGL), gaming giant Las Vegas Sands Corp. (NYSE:LVS), and restaurant chain Shake Shack Inc (NYSE:SHAK). Here's a quick roundup of today's bearish brokerage notes on GOOGL, LVS, and SHAK.

 

  • GOOGL, which is slated to report earnings Thursday evening, saw its price target cut to $650 from $675 at SunTrust Robinson -- though the firm reiterated its "buy" recommendation. The bearish note isn't entirely surprising, considering the stock has added just under 1% year-over-year to trade at $543.77, and is currently testing resistance at its descending 10-day moving average. Nevertheless, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) are extremely bullish toward Google Inc. In fact, the stock's 10-day call/put volume ratio of 2.46 has never been higher over the last 12 months. Speculators may be counting on another earnings win for GOOGL, which has averaged a nearly 3% gain in the session following its last eight trips to the confessional. Meanwhile, GOOGL is rolling out its new mobile-friendly algorithm change today.

     

  • LVS will report earnings tomorrow night, and has historically struggled in the wake of these quarterly events -- giving up ground in the session following three of its last four reports. This morning, the shares are reeling on a price-target reduction to $65 from $69 at Susquehanna, down 1.7% at $55.40Options traders have been skeptical of Las Vegas Sands Corp. heading into earnings. The stock's 10-day ISE/CBOE/PHLX put/call volume ratio of 1.45 ranks just 7 percentage points from an annual high.

     

  • Finally, SHAK is feeling the heat this morning, down 2.3% at $62.21 after Stifel downgraded the stock to "hold" from "buy" due to its fast-rising share price. Indeed, since going public in late January, Shake Shack Inc has advanced 32.3%, and yesterday hit a record high of $63.72. Amid this rally, short sellers have been upping the bearish ante. Short interest on SHAK rose 67.1% during the two most recent reporting periods, and now makes up more than one-third of the equity's float. Analysts remain skeptical, too, with five of six rating the stock a "hold," compared to just one "strong buy."

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