Analyst Downgrades: DISH Network Corporation, Vince Holding Corp., and Zumiez Inc.

Analysts downwardly revised their ratings and price targets on DISH Network Corp (NASDAQ:DISH), Vince Holding Corp (NYSE:VNCE), and Zumiez Inc. (NASDAQ:ZUMZ)

by Josh Selway

Published on Jun 5, 2015 at 9:52 AM

Analysts are weighing in today on satellite television provider DISH Network Corp (NASDAQ:DISH), fashion focus Vince Holding Corp (NYSE:VNCE), and sports apparel retailer Zumiez Inc. (NASDAQ:ZUMZ). Here's a quick roundup of today's bearish brokerage notes on DISH, VNCE, and ZUMZ.

  • Amid speculation the company is in merger talks with T-Mobile US Inc (NYSE:TMUS), Macquarie cut its rating on DISH to "neutral." The majority of analysts have already made their skepticism apparent, with 12 of 17 brokerage firms calling the shares a "hold" or worse. It's not like DISH Network Corp has been a technical disappointment. The equity has gained over 25.6% in the past 12 months. Today, however, the stock is down 1% at $73.50.

  • VNCE has slid 16.4% today to $12.78 -- an all-time low -- after the company lowered its full-year forecast, overshadowing a first-quarter earnings beat. The brokerage bunch was quick to jump in, as Baird cut its outlook to "neutral," and was one of four brokerage firms to reduce its price target on the stock, moving it down to $15 from $23. This matches the general sentiment surrounding Vince Holding Corp. For one, over 15% of its float is sold short, accounting for over 11 days' worth of trading, at normal daily volumes. Also, its Schaeffer's put/call open interest ratio (SOIR) of 2.42 is only 4 percentage points from an annual high, meaning short-term speculators are more put-skewed than normal. This bearish backdrop isn't surprising when looking at the charts, as VNCE has underperformed the S&P 500 Index (SPX) by almost 29 percentage points in the past 60 sessions.

  • A first-quarter earnings miss and dreary current-quarter outlook prompted a round of bearish analyst attention on ZUMZ, and now the stock is 18% lower at $24.40 -- an annual low. Specifically, no fewer than 10 brokerage firms lowered their price targets on the shares, with Wedbush setting the lowest bar at $26. Also, Roth Capital and Baird cut their ratings on Zumiez Inc. to "neutral" from the equivalent of a "buy," while lowering their price targets to $29 and $28, respectively. After all of this, the stock is now off 41.6% since its annual high of $41.81 on Jan. 9. This is likely part of the reason 75% of analysts say ZUMZ is a "hold."

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