Analyst Downgrades: IBM, Walt Disney, Progressive Waste

Analysts downwardly revised their ratings on International Business Machines Corp. (IBM), Walt Disney Co (DIS), and Progressive Waste Solutions Ltd (USA) (BIN)

Alex Eppstein
Oct 20, 2015 at 9:49 AM
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Analysts are weighing in on blue chips International Business Machines Corp. (NYSE:IBM) and Walt Disney Co (NYSE:DIS), as well as trash collector Progressive Waste Solutions Ltd (USA) (NYSE:BIN). Here's a quick roundup of today's bearish brokerage notes on IBM, DIS, and BIN.

  • IBM is in the bearish crosshairs this morning, after the company reported mixed quarterly results -- including worse-than-expected revenue -- and lowered its full-year profit forecast. No fewer than nine brokerage firms cut their price targets in response, with SocGen setting the lowest benchmark, at $140. As such, International Business Machines Corp. has dropped 5.5% out of the gate at $140.95, after hitting a nearly five-year low of $140.50. This should come as a welcome development for traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), where the equity has amassed a 50-day put/call volume ratio of 0.97 -- outstripping all comparable readings from the prior year. In other words, option players have favored long puts over calls at an extreme rate in recent months.
  • DIS was initiated with a "hold" rating and $106 price target at Pivotal Research, while Nomura trimmed its price target to $121 from $125. The negative notes are unexpected, considering the stock has advanced over 16% year-to-date to trade at $109.57 -- including a 0.1% gain today -- and muscled back atop its 100-day moving average yesterday for the first time since early August. However, skepticism isn't limited to the aforementioned analysts. On the ISE, CBOE, and PHLX, Walt Disney Co has racked up a 10-day put/call volume ratio of 1.02 -- just 15 percentage points from an annual high.
  • BIN is smarting this morning, after the company's weak preliminary third-quarter revenue numbers prompted no fewer than nine analysts to weigh in bearishly. For example, Stifel downgraded its opinion on the stock to "hold" from "buy," while RBC cut its price target to $27 from $29. At last check, Progressive Waste Solutions Ltd has skidded 17% to trade at $22.48 -- and earlier panned a two-year low of $20.81. Future downgrades and price-target reductions remain a distinct possibility, considering 78% of analysts have handed out "strong buy" recommendations -- with not a single "sell" in sight. Plus, BIN's average 12-month price target of $40.99 is 82.3% higher than current trading levels, and in never-before-charted waters.
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