Analyst Downgrades: Marvell, Cheesecake Factory, JPMorgan

Analysts downwardly revised their ratings on semiconductor producer Marvell Technology Group Ltd. (MRVL), restaurant chain Cheesecake Factory Inc (CAKE), and banking monster JPMorgan Chase & Co. (JPM)

Oct 27, 2015 at 9:24 AM
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Analysts are weighing in on semiconductor producer Marvell Technology Group Ltd. (NASDAQ:MRVL), restaurant chain Cheesecake Factory Inc (NASDAQ:CAKE), and banking monster JPMorgan Chase & Co. (NYSE:JPM). Here's a quick roundup of today's bearish brokerage notes on MRVL, CAKE, and JPM.

  • MRVL is getting whacked ahead of the open, on news the company's external accounting firm, PricewaterhouseCoopers, has resigned. Upon resigning, PwC issued several concerning statements, saying the company needs to expand its 2016 audit, while questioning management's "tone for effective control." Marvell Technology Group Ltd. is now set to open 20% lower, which would mark its second bear gap in as many months. The struggling stock has already given back more than one-third of its value in 2015, last seen at $9.45, and several analysts are jumping ship amid today's news. Among them, both B. Riley and UBS cut their opinions to "sell," with the latter slashing its price target to $6 from $9.10. 
  • CAKE is crumbling in pre-market trading, slipping 5.7%, after the company missed the Street's consensus revenue estimate. Analysts have swooped in, with Barclays, Stifel, and Jefferies all lowering their price targets, the latter setting expectations the lowest at $52 -- right in line with Cheesecake Factory Inc's Monday close of $51.99. Conversely, BTIG Research boosted its rating to "buy" from "neutral," and RBC upped its price target to $207 from $198. Elsewhere, option traders are likely rejoicing at the prospects of losses. CAKE's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.76 ranks higher than 84% of all readings from the past year. 

  • After Deutsche Bank trimmed its price target to $72 from $75, JPM is sitting slightly lower ahead of the open -- even as the financial firm announced a foray into mobile payments. On the charts, the shares have been spinning their wheels between $60 and $64 since late August, settling yesterday at $63.90. Although the company reported disappointing quarterly figures earlier this month, most brokerage firms are still optimistic on JPMorgan Chase & Co. Currently, 13 of 17 analysts say the stock is at least a "buy" -- with not a single "sell" opinion to be found -- and its average 12-month price target of $72.44 sits in all-time-high territory.
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