Analyst Downgrades: Starbucks, Peabody Energy, Fossil Group

Analysts downwardly revised their ratings on Starbucks Corporation (NASDAQ:SBUX), Peabody Energy Corporation (NYSE:BTU), and Fossil Group Inc (NASDAQ:FOSL)

by Alex Eppstein

Published on Jul 1, 2015 at 9:26 AM
Updated on Jul 2, 2020 at 2:21 PM

Analysts are weighing in today on java giant Starbucks Corporation (NASDAQ:SBUX), coal concern Peabody Energy Corporation (NYSE:BTU), and watch maker Fossil Group Inc (NASDAQ:FOSL). Here's a quick roundup of today's bearish brokerage notes on SBUX, BTU, and FOSL.

  • SBUX was removed from Goldman Sachs' "America's Conviction" list, despite its nearly 31% year-to-date lead. Also, at $53.62, the shares are approaching their record high of $54.75 from last Friday, helped by several bounces off their 20-day moving average. Amid Starbucks Corporation's uptrend, short selling has picked up -- spiking over 23% during the latest reporting period. A quick exit by these skeptics could further energize the technical outperformer.

  • Yesterday's current-quarter profit warning (subscription required) from BTU sank the shares 12.8%. That trend will likely continue today, with the stock down another 2.5% ahead of the bell following a price-target cut to $9 from $10 at Stifel. All told, it's been a brutal year for Peabody Energy Corporation, down nearly 72% in 2015 at $2.19. Nevertheless, six of 15 analysts still consider the shares worthy of a "buy" or better rating, with another six sitting on "hold" opinions. Plus, BTU's average 12-month price target of $6.90 is more than three times the current perch. This could pave the way for future downgrades and/or additional price-target reductions, resulting in headwinds.

  • Last night, KeyBanc cut its price target on FOSL to $65 from $68. The bearish note is warranted, considering the stock has tumbled 40% since its annual peak of $115.20 in November to trade at $69.36, and is now flirting with its two-year low of $68.55, touched in late May. Amid this downtrend, bears have been licking their chops. Fossil Group Inc's 10-day put/call volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 2.30 -- higher than nearly three-quarters of comparable readings from the past year. Also, over 24% of FOSL's float is sold short, equal to roughly 12 days of trading, given typical volumes.

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