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

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.

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!

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!