Analyst Downgrades: Allstate Corp, Chevron Corporation, and Microchip Technology Inc.

Analysts downwardly revised their ratings on Allstate Corp (ALL), Chevron Corporation (CVX), and Microchip Technology Inc. (MCHP)

by Alex Eppstein

Published on Aug 4, 2015 at 9:29 AM

Analysts are weighing in today on insurance issue Allstate Corp (NYSE:ALL), blue chip Chevron Corporation (NYSE:CVX), and semiconductor firm Microchip Technology Inc. (NASDAQ:MCHP). Here's a quick roundup of today's bearish brokerage notes on ALL, CVX, and MCHP.

 

  • ALL reported disappointing quarterly earnings last night, prompting RBC to downgrade its rating to "sector perform" from "outperform," and Goldman Sachs to follow suit with a reduction to "neutral" from "conviction buy." As such, the shares are poised to drop 8% at the open, pushing them further into the red. As of Monday's close at $69.38, Allstate Corp was down 1.2% in 2015. Future downgrades could further pressure the stock, as more than half of covering analysts have doled out "buy" or better endorsements. Price-target cuts are a distinct possibility, as well, considering ALL's average 12-month price target of $73.42 sits in never-before-seen territory.

  • CVX has been following crude lower, and leading the Dow south in recent sessions. Yesterday, in fact, the energy stock hit a four-year low of $85.32, just a few days after the company reported its worst quarterly profit in more than a decade. This bearish momentum could continue today, as Goldman Sachs cut its price target on Chevron Corporation to $86 from $91. Additional price-target reductions could come down the pike, too. Currently, CVX's average 12-month price target is $106.22, or 24% above last night's close at $85.60.

  • MCHP reported lower-than-expected earnings last night, prompting a number of brokerage firms to weigh in. While Credit Suisse reinstated coverage with an "outperform" rating and $50 price target, five other firms cut their price targets -- with Morgan Stanley setting the lowest bar, at $47. Ahead of the bell, Microchip Technology Inc. is perched 1.8% below last night's close at $42.78, threatening to add to its year-to-date deficit of more than 5%. Short sellers are counting on the security to maintain its negative trajectory. Roughly one-tenth of MCHP's float is sold short, representing about two weeks' worth of trading, at typical daily trading levels.

Want an even earlier advantage on the biggest news before the bell? Sign up now to get Schaeffer's Opening View delivered straight to your inbox!


A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.
Wall Street Roars Higher Amid Civil Unrest
Investors weighed a mixed bag of jobs data
AstraZeneca Stock Flat Despite COVID-19 Vaccine News
AstraZeneca saw a rise in capacity for its COVID-19 vaccine candidate
The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.