Analyst Downgrades: Zillow Group Inc, LinkedIn Corp, and Synaptics, Incorporated

Analysts downwardly revised their ratings on Zillow Group Inc (Z), LinkedIn Corp (LNKD), and Synaptics, Incorporated (SYNA)

by Alex Eppstein

Published on Jul 31, 2015 at 9:54 AM
Updated on Jul 31, 2015 at 11:37 AM

Analysts are weighing in today on Internet real estate resource Zillow Group Inc (NASDAQ:Z), professional networking site LinkedIn Corp (NYSE:LNKD), and touchscreen designer Synaptics, Incorporated (NASDAQ:SYNA). Here's a quick roundup of today's bearish brokerage notes on Z, LNKD, and SYNA.

  • Z, which will step up to the earnings plate next Tuesday evening, was hit with a downgrade to "underperform" from "market perform" at Cowen and Company, which also slashed its price target to $60 from $90. However, the stock is up 1.3% this morning at $84.20, paring its year-to-date deficit to 20.4%. Not surprisingly, sentiment on the Street is bearish toward Zillow Group Inc. Over 70% of covering analysts consider the underperformer a "hold" or worse, and 35% of its float is sold short -- representing almost eight days of trading, at Z's typical volumes.

  • Despite posting better-than-anticipated second-quarter results, LNKD has plunged 9.9% this morning at $204.76, as investors worry about the company's widening quarterly losses and lackluster full-year sales forecast. Since touching a late-February record peak of $276.18, the shares have retreated nearly 26%. Contributing to today's swoon is a round of bearish analyst notes. Evercore ISI downgraded LinkedIn Corp's rating to "hold" and lowered its price target to $220, while explaining the company's "more conservative outlook" is the result of "limited visibility on its marketing solutions line, where it continues to make a transition away from high-priced premium display to feed-based and more performance-based ads." Similarly, Piper Jaffray trimmed its price target to $240. However, Jefferies, Needham, Cantor, and Raymond James each raised their price targets. Elsewhere, short-term option traders have been put-skewed toward LNKD. The stock's Schaeffer's put/call open interest ratio (SOIR) of 1.07 ranks in the 88th percentile of its annual range.

  • SYNA is getting destroyed, after the company posted a disappointing fiscal fourth-quarter profit, offered up an uninspiring full-year revenue forecast, and received a subsequent round of bearish brokerage notes. Specifically, seven analysts cut their price targets on the stock, the most drastic of which came from Dougherty & Company -- which slashed its target to $78 from $90. At last check, Synaptics, Incorporated has dropped 6.8% at $73.89, and since hitting a mid-June record high of $102.50, the security's loss is 28%. Option traders see more downside on the horizon, too. SYNA's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.98 ranks in the 71st annual percentile.

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