Analyst Downgrades: Walt Disney, Micron, and Time Warner

Analysts downwardly revised their ratings on Walt Disney Co (DIS), Micron Technology, Inc. (MU), and Time Warner Inc (TWX)

Aug 20, 2015 at 9:43 AM
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Analysts are weighing in today on blue chip Walt Disney Co (NYSE:DIS), chipmaker Micron Technology, Inc. (NASDAQ:MU), and media mogul Time Warner Inc (NYSE:TWX). Here's a quick roundup of today's bearish brokerage notes on DIS, MU, and TWX.

  • DIS saw its rating and price target reduced to "market perform" and $114, respectively, at Bernstein. Option traders are skeptical, too. During the last 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Walt Disney Co has racked up a put/call volume ratio of 0.89 -- higher than 83% of comparable readings from the past year. In other words, speculators have bought to open puts over calls at a faster-than-usual clip. On the charts, 2015 has been a roller coaster. DIS ran to an all-time peak of $122.08 earlier this month, before gapping lower on earnings. At last check, the stock was lingering near $103.96 -- still 10% above its year-to-date flatline -- but is down 2.3% out of the gate, and on track to close south of its 200-day moving average for the first time since mid-October.

  • MU, which has lost more than half of its value this year, received a downgrade to "neutral" at Baird -- which also slashed its price target to $15 from $36. Additional negative analyst attention could come down the pike, too. Currently, 18 of 28 analysts rate Micron Technology, Inc. a "buy" or better -- with not a single "sell" to be found -- while its consensus 12-month price target of $27.65 stands at a 78% premium to current levels. At last check, MU was down 4.1% at $15.25, and fresh off a nearly two-year low of $15.05.

  • Despite last week's "Sesame Street" news, TWX has been struggling of late. Since hitting a nearly 14-year high of $91.34 in mid-July, the shares have tumbled almost 17% to trade at $75.89 -- including today's 2.5% loss -- pressured by poorly received earnings. Bernstein has taken notice, cutting its rating to "market perform" and its price target to $90. Speaking more generally, though, the brokerage crowd is extremely optimistic toward Time Warner Inc, as 18 of 22 analysts have doled out "strong buy" recommendations. Also, the stock's consensus 12-month price target of $97.03 hasn't been touched since July 2001. This could leave TWX vulnerable to another round of negative notes.

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