Analyst Update: Roadrunner, Deckers, Baidu Inc

Analysts adjusted their ratings on Roadrunner Transportation Systems Inc (RRTS), Deckers Outdoor Corp (DECK), and Baidu Inc (ADR) (BIDU)

by Mark Fightmaster

Published on Oct 27, 2015 at 1:42 PM
Updated on Jun 29, 2020 at 3:57 PM

Analysts are weighing in today on logistics company Roadrunner Transportation Systems Inc (NYSE:RRTS), footwear firm Deckers Outdoor Corp (NYSE:DECK), and Chinese Internet concern Baidu Inc (ADR) (NASDAQ:BIDU). Here's a quick roundup of today's brokerage notes on RRTS, DECK, and BIDU.

  • RRTS has plummeted 44.6% to trade at $9.79 -- slightly higher than its all-time low of $9.51, touched earlier -- after the company downwardly revised its third-quarter earnings and revenue outlook, citing a variety of factors, including increased accidents and higher insurance and claims expenses. As a result, Roadrunner Transportation Systems Inc saw Raymond James cut its rating to "market perform" from "outperform," and BB&T lower its assessment to "hold" from "buy." Technically, the stock had lost 24% this year through yesterday's close -- and the loss has substantially grown today. Regardless, analysts are bullishly aligned toward RRTS. The equity has received six "strong buy" rankings, one "buy," a solitary "hold," and not one "sell." Further downgrades from this crew in the wake of today's news, or further poor performance, could spell doom for the shares.
  • Earlier this morning, Sterne Agee cut DECK to "neutral" from "buy," sending the equity down 7% at $50.54. The brokerage explained the decision by saying Deckers Outdoor Corp's UGG boot brand sales are "down and falling further with each passing day," and predicted the company will eventually cut current-quarter guidance. In response to the downgrade, the shares hit a more than two-year low of $49.92. The boot baron has had a tough year, with the stock falling 44.5%. Short sellers have tried to take advantage of the price weakness, as more than 19% of the equity's float is sold short. What's more, it would take 11.5 days to buy back these shorted shares, at DECK's average daily trading volume. Looking ahead, the company will hit the earnings stage Thursday evening. 
  • Shares of Chinese Internet company BIDU are 3.1% higher at $171.39, after BofA-Merrill Lynch raised its price target to $210 from $193. In addition to the price-target elevation, Baidu Inc is benefiting from a solid earnings performance from Alibaba Group Holding Ltd (NYSE:BABA) and yesterday's announced stock swap with Ctrip.com International, Ltd. (NASDAQ:CTRP). Technically, the stock has performed well of late, tacking on 31% since September's intraday low of $130.77. Option players have been upping the bullish ante in response, as BIDU's 10-day call/put volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 3.27 sits at a 52-week high. These traders may be getting nervous, with the company set to step up to the earnings plate Thursday night.

For other stocks in analysts' crosshairs, read Analyst Upgrades: Valeant Pharmaceuticals Intl Inc, Silver Wheaton Corp., and AT&T Inc. and Analyst Downgrades: Marvell Technology Group Ltd., Cheesecake Factory Inc, and JPMorgan Chase & Co..


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