Analyst Downgrades: Twitter, SanDisk, Urban Outfitters

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
Updated on Jul 2, 2020 at 2:35 PM

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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