Analyst Downgrades: Caterpillar, BlackBerry, and Micron

Analysts downwardly revised their ratings on Caterpillar Inc. (NYSE:CAT), BlackBerry Ltd (NASDAQ:BBRY), and Micron Technology, Inc. (NASDAQ:MU)

Sep 28, 2015 at 10:14 AM
facebook X logo linkedin

Analysts are weighing in on construction concern Caterpillar Inc. (NYSE:CAT), smartphone maker BlackBerry Ltd (NASDAQ:BBRY), and semiconductor firm Micron Technology, Inc. (NASDAQ:MU). Here's a quick roundup of today's bearish brokerage notes on CAT, BBRY, and MU.

  • CAT has picked up right where it left off last week, with the shares down 1.9% at $63.73 -- and fresh off a five-year low of $63.61 -- after William Blair downgraded the stock to "market perform" from "outperform." Also weighing in on the equity were Jefferies and Deutsche Bank, which lowered their respective price targets to $63 and $80. Longer term, Caterpillar Inc. has surrendered roughly 30% in 2015, and option traders have been rolling the dice on more downside. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for example, CAT's 50-day put/call volume ratio of 2.04 ranks just 8 percentage points from a 52-week peak.

  • BBRY tumbled to a new annual low of $6.19 today, as analysts continued to chime in following last Friday's earnings report. Included in the bunch was UBS, which lowered its price target to $7.50 from $10, and BMO, which cut its target price to $7 from $9. It's been tough for the stock this year, shedding around 43%. However, the equity has recently found a foothold in the $6.30-to-$6.40 region, and was last seen at $6.30. In the options pits, BlackBerry Ltd's 50-day ISE/CBOE/PHLX call/put volume ratio of 4.98 sits just 5 percentage points from a 52-week peak. In other words, calls have been bought to open over puts at a near-annual-high clip. With 19% of the equity's float sold short, though, some of this call buying could be of the protective kind.

  • Analysts continue to lower their outlooks on MU, and today, this resulted in price-target cuts from Cowen and Company (to $25) and UBS (to $20). As such, the shares have plummeted 3.4% to $14.41 -- widening their year-to-date deficit to 59%. In spite of this, option traders have bought to open calls over puts at the fastest pace of the year in recent weeks, per MU's 10-day ISE/CBOE/PHLX call/put volume ratio of 6.74 -- an annual high. Should Micron Technology, Inc. continue its downward trajectory, an unwinding of these bullish bets could create additional headwinds for the shares.

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!


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI