Analyst Downgrades: Urban Outfitters, Lumber Liquidators

Analysts downwardly revised their ratings on Urban Outfitters, Inc. (NASDAQ:URBN), Lumber Liquidators Holdings Inc (NYSE:LL), and Oneok Partners LP (NYSE:OKS)

May 19, 2015 at 9:44 AM
facebook twitter linkedin

Analysts are weighing in on specialty retailer Urban Outfitters, Inc. (NASDAQ:URBN), flooring firm Lumber Liquidators Holdings Inc (NYSE:LL), and natural gas issue Oneok Partners LP (NYSE:OKS). Here's a quick roundup of today's bearish brokerage notes on URBN, LL, and OKS.

  • Unlike its last turn in the earnings confessional, URBN is down 15.4% out of the gate to $34.45, after the firm's dismal first-quarter earnings report was met with swift backlash from the brokerage bunch. J.P. Morgan Securities, for example, downgraded the stock to "neutral" from "overweight," and cut its price target to $34 from $50. Elsewhere, Oppenheimer reduced URBN to "perform" from "outperform," and lowered its target price to $35 from $44. Today's price move just echoes the equity's recent technical struggles, with URBN off 27% from its March 20 all-time high of $47.25. Option traders have kept the faith, though, and at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Urban Outfitters, Inc.'s 50-day call/put volume ratio of 3.09 ranks in the 72nd annual percentile.
  • It's been a volatile few months for LL, with the shares down almost 50% from their Feb. 26 close at $50.63. This may be what prompted Cantor Fitzgerald to cut its rating to "hold" from "buy," and slash its price target by $16 to $26 -- sending the shares 2% lower today to $25.56, and on pace for their lowest settlement since April 2012. There's still plenty of room on LL's bearish bandwagon, though. For starters, the equity's 50-day ISE/CBOE/PHLX call/put volume ratio of 1.17 rests higher than 89% of all similar readings taken in the past year. Plus, Lumber Liquidators Holdings Inc's consensus 12-month price target of $33.17 stands at a 30% premium to current trading levels. A shift in sentiment among option traders and/or additional price-target cuts could translate into extended losses down the road. Meanwhile, LL could see some additional volatility in tomorrow's session, with the firm slated to host its annual shareholders meeting.
  • Similar to Goldman Sachs yesterday, Deutsche Bank weighed in on a number of energy names this morning, and for OKS, this resulted in a "sell" initiation and a $38 price target -- a discount to the stock's current perch at $40.49. On the charts, the stock has been making a path lower in recent months -- off 32% from its Sept. 2 annual high of $59.67 -- thanks to pressure from its 120-day moving average. What's more, this trendline emerged as a stern layer of resistance during OKS' most recent rally attempts. In the options pits, short-term speculators are more call-heavy than usual, per Oneok Partners LP's Schaeffer's put/call open interest ratio (SOIR) of 0.39, which ranks in the 28th percentile of its annual range.



Special Offers from Schaeffer's Trading Partners