Analysts downwardly revised their ratings on Berkshire Hathaway Inc. (BRK.B), ARM Holdings plc (ADR) (ARMH), and Walt Disney Co (DIS)
Analysts are weighing in on Warren Buffett baby Berkshire Hathaway Inc. (NYSE:BRK.B), microprocessor specialist ARM Holdings plc (ADR) (NASDAQ:ARMH), and entertainment issue Walt Disney Co (NYSE:DIS). Here's a quick roundup of today's bearish brokerage notes on BRK.B, ARMH, and DIS.
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Barclays lowered its price target on BRK.B to $169 from $173, after the company unveiled its biggest acquisition to date. Specifically, Berkshire Hathaway Inc. said it would purchase Precision Castparts Corp. (NYSE:PCP) in an all-cash deal valued at $37.2 billion, or $235 per share. At last check, shares of BRK.B were off 1.2% to linger near $141.83. Longer term, the stock has shed 5.5% year-to-date -- and struggled against the $144 mark.
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J.P. Morgan Securities cut its price target on ARMH to $39.50 from $41.50, sending the shares 1% lower this morning to trade at $44.17. This negative analyst attention isn't coming out of left field, considering the security has shed roughly one-fifth of its value since hitting an annual high of $54.82 in late April. What's more, an additional batch of bearish brokerage notes could be on the horizon. Currently, 12 out of 15 analysts covering the shares maintain a "buy" or better rating, with the consensus 12-month price target of $57.70 stands at a 31% premium to ARM Holdings plc's present price, and in never-before-seen territory.
- It's been a rough go for DIS of late, with the stock off 9.4% from last Tuesday's record high of $122.08. Amid this sell-off -- which was prompted by Walt Disney Co's lackluster turn in the earnings confessional -- the stock's 14-day Relative Strength Index (RSI) dropped to 31, teetering near oversold waters. This may be why DIS is up 1.1% today at $110.58, despite price-target cuts from Credit Suisse (to $120) and Deutsche Bank (to $114). Option traders, it seems, have been betting on a steeper retreat. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), DIS' 10-day put/call volume ratio of 0.76 sits higher than 76% of similar readings taken in the past year. In other words, puts have been bought to open over calls at a faster-than-usual clip.