Analyst Downgrades: GoPro Inc, Transocean LTD, and JPMorgan Chase & Co.

Analysts downwardly revised their ratings on GoPro Inc (NASDAQ:GPRO), Transocean LTD (NYSE:RIG), and JPMorgan Chase & Co. (NYSE:JPM)

by Josh Selway

Published on Oct 14, 2015 at 10:00 AM

Analysts are weighing in on camera fanatic GoPro Inc (NASDAQ:GPRO), drilling firm Transocean LTD (NYSE:RIG), and financial behemoth JPMorgan Chase & Co. (NYSE:JPM). Here's a quick roundup of today's bearish brokerage notes on GPRO, RIG, and JPM.

  • Plain and simple, GPRO has been terrible on the charts recently. The shares have lost more than half their value year-to-date, and just touched an all-time low of $26.68 as the downward momentum continues. Contributing to the sell-off, Piper Jaffray cut its outlook to "neutral" from "overweight," and its price target to $25 from $54. The shares have fallen 2.3% to $27.34 in response. It's likely short sellers will continue to pile on. Short interest ballooned more than 70% in the two most recent reporting periods. Now, more than 36% of GoPro Inc's float is controlled by these bears. 

  • Despite a downgrade to "reduce" from "neutral" at Seaport Global Securities, and a price-target reduction at J.P. Morgan Securities to $11 from $13, RIG is 1% higher at $15.73 this morning. This is a rare feat of strength from a security that was off 15% year-to-date coming into today. Shifting gears, skepticism abounds on the Street. None of the 18 covering brokerage firms rate Transocean LTD a "buy," and its average 12-month price target of $11.95 is below current levels.

  • JPM is off a bigger-than-anticipated 2.5% this morning at $60.08, after the firm missed third-quarter earnings expectations. Responding to the lackluster quarterly report, Bernstein and KBW each lowered their price targets, to $71 and $74, respectively. On the other hand, Nomura bumped its price target to $72 from $70. Even though JPMorgan Chase & Co. has lagged behind the S&P 500 Index (SPX) during recent months, there's still a clear call bias among short-term speculators. This is evidenced by the stock's Schaeffer's put/call open interest ratio (SOIR), which stands at 0.42 -- only 8 percentage points from an annual low. 
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