Analyst Downgrades: Freeport-McMoRan Inc, Chevron Corporation, and Exxon Mobil Corporation

Analysts downwardly revised their ratings and price targets on Freeport-McMoRan Inc (NYSE:FCX), Chevron Corporation (NYSE:CVX), and Exxon Mobil Corporation (NYSE:XOM)

by Josh Selway

Published on Sep 1, 2015 at 9:40 AM
Updated on Jun 24, 2020 at 10:16 AM

Analysts are weighing in on commodity stocks Freeport-McMoRan Inc (NYSE:FCX)Chevron Corporation (NYSE:CVX), and Exxon Mobil Corporation (NYSE:XOM). Here's a quick roundup of today's bearish brokerage notes on FCX, CVX, and XOM. 

  • FCX's recent batch of put buyers are likely cheering this morning, with the stock down 4.3% at $10.19, after a downgrade at Citigroup. Specifically, the brokerage firm cut the stock to "neutral" from "buy," while lowering its price target by $8 to $12, saying the sector hasn't reduced production enough to account for falling prices. It's probably not just options bears who are happy, though. Short interest jumped over 44% during the two most recent reporting periods, and now accounts for a healthy 6.1% of the equity's available float. Year-to-date, Freeport-McMoRan Inc is down roughly 56%. 

  • CVX has given back 2.9% to trade at $78.67, after HSBC reduced its price target to $97 from $125, but kept its "buy" assessment. Many on the Street share HSBC's bullish opinion on the stock, with six out of 15 brokerage firms calling Chevron Corporation a "buy" or better -- even with the shares roughly 30% lower in 2015. If analysts begin to throw in the towel amid ongoing technical struggles, it could spark extended losses for CVX.  

  • Lastly, XOM is off 3% in early trading -- putting the shares at $72.99 -- as HSBC lowered its price target to $77 from $90. The stock has underperformed the S&P 500 Index (SPX) during the past three months amid oil's decline, which may explain why short-term speculators have targeted puts over calls. For instance, Exxon Mobil Corporation's Schaeffer's put/call open interest ratio (SOIR) stands at 1.08 -- higher than 86% of all such readings from the past year, signaling a put-skewed bias among traders targeting options with a lifespan of three months or less. 

Get the skinny on all the biggest stories of the morning… Sign up now to get Schaeffer's Midday Market Check delivered straight to your inbox!


A Schaeffer's 39th Anniversary Exclusive!

8 Top Stock Picks for 2020

Access your FREE insider report before it's too late!


  
 
 

Partnercenter