Analyst Downgrades: Ubiquiti, Iconix Brand, Micron

Analysts downwardly revised their ratings on Ubiquiti Networks Inc (UBNT), Iconix Brand Group Inc (ICON), and Micron Technology, Inc. (MU)

Alex Eppstein
Aug 7, 2015 at 9:51 AM
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Analysts are weighing in today on tech firm Ubiquiti Networks Inc (NASDAQ:UBNT), brand management company Iconix Brand Group Inc (NASDAQ:ICON), and chipmaker Micron Technology, Inc. (NASDAQ:MU). Here's a quick roundup of today's bearish brokerage notes on UBNT, ICON, and MU.

  • UBNT's mixed turn in the earnings confessional is being panned by the brokerage crowd. While BMO raised its price target, Wunderlich and Raymond James lowered their respective opinions to "hold" and "underperform." Wunderlich also trimmed its price target to $36 from $37, while Bernstein cuts its target to $49 from $54. As such, Ubiquiti Networks Inc is down 9.5% at $29.02, back in negative year-to-date territory, and on the short-sale restricted (SSR) list. This is a boon to short sellers, as 36.4% of the stock's float is sold short. At UBNT's typical trading levels, it would take three weeks to cover these bearish positions.

  • ICON founder and CEO Neil Cole will leave the company, with Peter Cuneo stepping into the latter role and board chairman position on an interim basis. The news hasn't been well-received, with Wunderlich and Nomura each lowering their ratings to the equivalent of a "hold," and Wunderlich and Brean Capital slashing their respective price targets to $16 and $25. Out of the gate, Iconix Brand Group Inc has lost one-quarter of its value, at $14.72, and earlier touched a three-year low of $13.54. Once again, short sellers are in heaven. Almost one-third of ICON's float has been sold short, which represents more than four weeks' worth of trading, at typical volumes. Today, though, short sellers can't get in on the action, as the stock is on the SSR list.

  • MU saw its rating cut to "hold" at Drexel Hamilton, and its price target lowered to $20.50 at Mizuho. As a result, the shares are off 1.2% in early trading at $18.50, extending their year-to-date slide past 47%. Suffice it to say, Micron Technology, Inc. is set up for additional bearish brokerage attention. An incredible 21 of 27 analysts rate the underperformer a "buy" or better, while its consensus 12-month price target of $29.35 stands at a 59% premium to current trading levels.

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