Analyst Downgrades: Transocean, Quest, Western Digital

Analysts downwardly revised their ratings on Transocean LTD (NYSE:RIG), Quest Diagnostics Inc (NYSE:DGX), and Western Digital Corp (NASDAQ:WDC)

Jun 23, 2015 at 9:44 AM
facebook X logo linkedin


Analysts are weighing in today on oil-and-gas issue Transocean LTD (NYSE:RIG), diagnostic testing specialist Quest Diagnostics Inc (NYSE:DGX), and data storage solutions concern Western Digital Corp (NASDAQ:WDC). Here's a quick roundup of today's bearish brokerage notes on RIG, DGX, and WDC.

  • Global Hunter Securities cut its price target on RIG to $16 from $18 -- representing a discount to last night's close at $16.94. However, reports the company inked $109 million in new drilling contracts -- an annual high -- are overshadowing this downbeat analyst note, with shares of RIG up 1.4% at $17.17. Technically speaking, its been a rough road for Transocean LTD, which hit a 52-week peak of $46.12 one year ago today, but has since shed 63% of its value. Against this backdrop, sentiment among the brokerage bunch is already skewed toward the skeptical side. All 19 analysts, for example, maintain a "hold" or worse rating.

  • DGX saw its rating reduced to "neutral" from "buy" at Goldman Sachs, sending the shares down 1% in early trading. Since spiking to an all-time high of $89 in late May amid M&A rumors, the stock has cooled its jets, down 19.6% at $71.55. Option traders, meanwhile, have been rolling the dice on a rebound by buying to open calls over puts at a faster-than-usual clip. Specifically, Quest Diagnostics Inc's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 6.81 ranks in the 73rd percentile of its annual range.

  • J.P. Morgan Securities lowered its outlook for WDC to "neutral" from "overweight," and cut its price target to $92 from $105 -- roughly in line with Monday's settlement at $91.60. The stock dropped 2.5% out of the gate to $89.36 on the negative analyst attention, bringing its year-to-date deficit to 19.3%. Should Western Digital Corp continue to struggle, another round of downgrades and/or price-target cuts could come down the pike from the generally upbeat brokerage bunch -- which may create additional headwinds for the shares. Of the 19 analysts covering the WDC, 15 maintain a "buy" or "strong buy" rating, while the average 12-month price target of $115.67 sits in territory yet to be charted.

A one-stop shop for the day's biggest headlines and more… Sign up now to get Schaeffer's Market Recap delivered straight to your inbox!
 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!

 

 
 
 


 
 

Rainmaker Ads CGI