Analyst Downgrades: Twitter Inc, SanDisk Corporation, and Urban Outfitters, Inc.

Analysts downwardly revised their ratings on Twitter Inc (TWTR), SanDisk Corporation (SNDK), and Urban Outfitters, Inc. (URBN)

by Alex Eppstein

Published on Aug 18, 2015 at 9:30 AM

Analysts are weighing in today on microblogging maestro Twitter Inc (NYSE:TWTR), flash storage firm SanDisk Corporation (NASDAQ:SNDK), and apparel retailer Urban Outfitters, Inc. (NASDAQ:URBN). Here's a quick roundup of today's bearish brokerage notes on TWTR, SNDK, and URBN.

  • While MKM Partners showed some love to TWTR rival Facebook Inc (NASDAQ:FB), the brokerage firm hit Twitter Inc with a price-target cut to $31 from $39. It was about time, too, considering the shares have surrendered 19% in 2015 to trade at $29.06, and earlier this month touched a record low of $26.87. Additional negative notes may be headed TWTR's way, too, which could apply further pressure. In spite of the stock's long-term struggles, 11 analysts still maintain "strong buy" endorsements, with not one doling out a "sell" opinion.

  • SNDK is off 3% pre-market after BofA-Merrill Lynch lowered its rating to "underperform." Short-term option traders appear to be skeptical, as well. SanDisk Corporation's Schaeffer's put/call open interest ratio (SOIR) checks in at 1.20 -- just 9 percentage points from a 12-month peak. In other words, speculators targeting options expiring within three months have rarely been so put-skewed. From a technical perspective, this skepticism seems warranted. In 2015, SNDK has given up over 40% of its value, closing at $58.20 last night after recently being rejected by its 50-day moving average.

  • In spite of a strong showing in the earnings confessional last night, URBN is getting hit with negative notes, after the company warned of a potential same-store sales slowdown this quarter. Specifically, no fewer than seven analysts slashed their price targets on Urban Outfitters, Inc., with the deepest cut being handed down by FBR -- to $32 from $35. Accordingly, it looks like the stock will add to its 8.3% year-to-date deficit -- as of Monday's close at $32.23 -- down 1% ahead of the open. This should cheer short sellers. Nearly one-tenth of URBN's float is sold short, representing six days' worth of trading activity, at typical volumes.

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