Analyst Downgrades: Hewlett-Packard Company, Marvell Technology Group Ltd., and Otonomy, Inc.

Analysts downwardly revised their ratings on Hewlett-Packard Company (NYSE:HPQ), Marvell Technology Group Ltd. (NASDAQ:MRVL), and Otonomy Inc (NASDAQ:OTIC)

by Karee Venema

Published on May 22, 2015 at 9:39 AM
Updated on May 22, 2015 at 9:42 AM

Analysts are weighing in on computer issue Hewlett-Packard Company (NYSE:HPQ), semiconductor concern Marvell Technology Group Ltd. (NASDAQ:MRVL), and biopharmaceutical firm Otonomy Inc (NASDAQ:OTIC). Here's a quick roundup of today's bearish brokerage notes on HPQ, MRVL, and OTIC.

  • HPQ received price-target cuts from Cantor (to $33), RBC (to $37), and BMO (to $38), after the firm posted mixed results for its fiscal second quarter, and said it will endure around $400 million in costs when it splits into two separate companies in November. These aren't the first headlines HPQ has made this week, with yesterday's M&A news providing Hewlett-Packard Company shares with a quick shot in the arm. Longer term, though, the stock has been a laggard, shedding more than 14% of its value year-to-date. Another round of downwardly revised price targets could be in the pipeline, should HPQ continue to struggle. The security's average 12-month price target of $40.40 represents expected upside of 17.4% to HPQ's present price of $34.42.
  • A number of brokerage firms chimed in on MRVL, following the company's first-quarter revenue miss. Additionally, Marvell Technology Group Ltd. offered up a lower-than-expected current-quarter forecast and announced the retirement of Chief Financial Officer Mike Rashkin. Included in the bunch was Credit Suisse, which cut its price target to $13 from $16, and Jefferies, which reduced its target price to $14 from $15. Raymond James, meanwhile, boosted its price target to $16 from $15 -- a 14.7% premium to the stock's current perch at $13.95. Against this backdrop, MRVL is down 2.9% at the open, which could prompt some option bulls to hit the bricks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), MRVL's 50-day call/put volume ratio of 11.52 sits in the 94th annual percentile. In other words, calls have been bought to open over puts with more rapidity just 6% of the time within the past year.
  • OTIC plunged 18.4% out of the gate to $25.35, after the company's experimental ear drug, OTO-104, failed to meet the main goal of its mid-stage trial. Adding to the bearish bias is a downgrade to "neutral" from "overweight" and price-target cut to $30 from $42 at J.P. Morgan Securities. Bernstein also weighed in on Otonomy Inc, reducing its target price to $30 from $34. Heading into today's session, the stock had already lost over a quarter of its value since topping out at a record high of $41.99 in mid-March, and short sellers have likely been cheering. At present, more than 10% of the equity's float is sold short.
 

 


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Nevada Discovery That Could Jeopardize Chinese Dominance
Click to continue to advertiser's site.
UNH Stock Pops on Accelerated Payment Promise
Analysts are very bullish on UnitedHealth stock
Extra Space Storage Stock Wavers After Downgrade
Raymond James downgraded to "underperform" from "market perform"
The Top Lithium Play of 2020
Click to continue to advertiser's site.