Analyst Downgrades: Deckers Outdoor Corporation, Potash Corporation of Saskatchewan Inc, and Transocean Ltd.

Analysts downwardly revised their ratings on Deckers Outdoor Corp (NYSE:DECK), Potash Corp./Saskatchewan (USA) (NYSE:POT), and Transocean LTD (NYSE:RIG)

by Alex Eppstein

Published on May 29, 2015 at 9:18 AM

Analysts are weighing in today on footwear specialist Deckers Outdoor Corp (NYSE:DECK), fertilizer fiend Potash Corp./Saskatchewan (USA) (NYSE:POT), and offshore drilling issue Transocean LTD (NYSE:RIG). Here's a quick roundup of today's bearish brokerage notes on DECK, POT, and RIG.

  • DECK was hit with a round of negative analyst notes today, following last night's poorly received fiscal fourth-quarter numbers. Specifically, Jefferies cut its price target to $105 from $110, Janney trimmed its fair value to $80 from $82, and Credit Suisse lowered its outlook to $77 from $82 -- though Susquehanna raised its price target to $86 from $83. Ahead of the bell, Deckers Outdoor Corp is off 1.7% -- business as usual for a stock that's dropped nearly 22% in 2015 to trade at $71.20. Traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) are betting on more downside ahead. DECK's 50-day put/call volume ratio of 1.43 ranks in the 80th annual percentile, meaning traders have had a strong-than-usual appetite for puts over calls. 

  • POT is signaling a lower start this morning, after TD Securities downgraded the equity to "hold" from "buy," and lowered its price target to $35 from $39. On the charts, the shares have been churning in the $32-$33.50 range for the last two months, and settled at $32.33 yesterday -- off 14% since their mid-February high at $37.60. Potash Corp./Saskatchewan could be vulnerable to additional negative analyst attention. Eight brokerage firms consider the stock a "buy" or better, compared to nine "holds" and just one "strong sell." Plus, POT's consensus 12-month price target of $45.44 stands at a more than 40% premium to Thursday's close.

  • RIG was started with an "underweight" rating and $16 price target at J.P. Morgan Securities. Now, the shares are set to start the day 0.3% lower. Technically speaking, the equity had a disastrous 2014, but has been clawing its way higher this year -- up 3.7% at $19.01, and currently sitting atop its 32-day moving average. However, the brokerage bunch remains exceedingly bearish on Transocean LTD, with all 16 analysts handing out "hold" or worse recommendations. Echoing this, 29.4% of RIG's float is sold short, equating to nearly nine sessions' worth of trading activity, at typical daily levels.

A Schaeffer's exclusive

TOP STOCK PICKS 2020

Access your FREE insider report 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


IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.
Stocks Eye Notable Weekly Gains on 3-Day Surge
Stocks are eyeing big weekly gains
WW Stock Brushes Off Bull Note
Morgan Stanley upgraded the Weight Watchers parent to "overweight" from "equal weight"
IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.