Analyst Downgrades: Allstate, Chevron, and Microchip

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

Aug 4, 2015 at 9:29 AM
facebook twitter linkedin

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!


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners