Analyst Downgrades: Intel, Vince Holding, Spirit Airlines

Analysts downwardly revised their ratings on Intel Corporation (INTC), Vince Holding Corp (VNCE), and Spirit Airlines Incorporated (SAVE)

Jul 14, 2015 at 9:27 AM
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Analysts are weighing in today on blue chip Intel Corporation (NASDAQ:INTC), clothing concern Vince Holding Corp (NYSE:VNCE), and low-cost carrier Spirit Airlines Incorporated (NASDAQ:SAVE). Here's a quick roundup of today's bearish brokerage notes on INTC, VNCE, and SAVE.

  • INTC saw its rating cut to "underperform" from "market perform" at Bernstein. The stock has struggled in recent months, but has recently found a foothold atop its 120-week moving average, so it could be poised to bounce from its perch at $29.73. Any upward momentum could send bears fleeing, as negativity is at extreme levels. Intel Corporation's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio stands at a 12-month peak of 2.84. Similarly, the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.71 outstrips all comparable readings from the past year. That positive catalyst could come in the form of tomorrow night's earnings report, especially if INTC can repeat its performance from mid-April.

  • VNCE is poised to plunge 18.2% at the open, following news that the company's CEO has resigned. Exacerbating the bearish bias is a trio of negative analyst notes -- specifically, William Blair downgraded the stock to "market perform" from "outperform" (citing questions about the firm's strategy and turnaround timetable), while Baird and J.P. Morgan Securities slashed their price targets to $13 and $9, respectively. Heading into the session, Vince Holding Corp is staring at a 54.2% year-to-date deficit, landing at $11.96 yesterday -- just above its all-time low of $11.28, touched earlier this month. Short sellers are counting on more downside, as almost 15% of the security's float is sold short -- representing more than a week's worth of trading, at typical daily volumes.

  • SAVE lowered its outlook for the rest of the year, citing lower revenue due to weather-related cancellations and increased competition. No fewer than six brokerage firms responded by cutting their price targets -- the lowest of which came courtesy of Cowen, which slashed its target to $65 from $74. As such, Spirit Airlines Incorporated is set to tumble 6.7% at the open, which would add to its nearly 16% slide in 2015 -- as of Monday's close at $63.54. Should SAVE continue to struggle, it could fall victim to additional negative attention from the brokerage crowd. Eighty percent of analysts rate the stock a "strong buy," while its average 12-month price target of $89.20 stands at a more than 40% premium to current trading levels.

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