Analyst Downgrades: GoPro, Exxon Mobil, and Vale

Analysts downwardly revised their ratings on GoPro Inc (GPRO), Exxon Mobil Corporation (XOM), and Vale SA (ADR) (VALE)

Sep 23, 2015 at 9:30 AM
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Analysts are weighing in today on action camera maker GoPro Inc (NASDAQ:GPRO), blue chip Exxon Mobil Corporation (NYSE:XOM), and miner Vale SA (ADR) (NYSE:VALE). Here's a quick roundup of today's bearish brokerage notes on GPRO, XOM, and VALE. 

  • GPRO received a price-target cut to $60 from $76 at Cowen and Company -- though that's still an 80% premium to yesterday's close at $33.31. Ahead of the bell, the stock has managed to build a 1.3% lead -- sustaining yesterday's positive momentum -- as it tries to fight back from its 47% year-to-date deficit. Short sellers have been upping the bearish ante on the long-term underperformer, with short interest jumping 36.3% during the latest reporting period. Currently, 21.5% of GoPro Inc's float is sold short.

  • XOM has been declining in step with crude oil, down 21.3% year-to-date at $72.74. As such, Macquarie initiated coverage on the shares with an "underperform" rating and a $60 price target. By contrast, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have displayed near-extreme levels of optimism toward Exxon Mobil Corporation. The stock's 10-day call/put volume ratio across that trio of exchanges is 1.81 -- a reading that sits 4 percentage points from an annual high. Echoing this, XOM's Schaeffer's put/call open interest ratio (SOIR) of 0.68 rests below 99% of comparable readings from the past 12 months. A capitulation among these bulls could result in headwinds for the equity.

  • VALE promised to cut production costs on iron ore by 2018 in order to maximize profit margins amid a weak market. Meanwhile, HSBC trimmed its price target on the stock to $5.90 from $6. On the charts, Vale SA has lost nearly 42% year-to-date to trade at $4.77, and hasn't closed atop its 10-week moving average since mid-May. As such, the brokerage crowd is firmly in the bearish camp, with 13 of 15 analysts handing out "hold" or worse recommendations. Future price-target cuts remain a possibility, though, as the consensus 12-month price target of $6.59 stands at a 38% premium to current levels.

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