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
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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.

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