Analyst Downgrades: GoPro Inc, Buffalo Wild Wings, and Paypal Holdings Inc

Analysts downwardly revised their ratings on GoPro Inc (NASDAQ:GPRO), Buffalo Wild Wings (NASDAQ:BWLD), and Paypal Holdings Inc (NASDAQ:PYPL)

by Josh Selway

Published on Oct 29, 2015 at 9:23 AM
Updated on Oct 29, 2015 at 9:23 AM

Analysts are weighing in on camera maker GoPro Inc (NASDAQ:GPRO), restaurant chain Buffalo Wild Wings (NASDAQ:BWLD), and online payment platform Paypal Holdings Inc (NASDAQ:PYPL). Here's a quick roundup of today's bearish brokerage notes on GPRO, BWLD, and PYPL.

  • GPRO is set to open at its lowest point on record. The shares have given back 17% in electronic trading, after the company announced lackluster quarterly results. Cowen and Company, in response, lowered its opinion to "market perform" from "outperform," and was one of no fewer than nine brokerage firms to cut its price target on the stock, slashing its expectations to $24 from $60. At $30.21, GoPro Inc has already lost more than half its value in 2015, and additional losses could be in store if more analysts throw in the towel. Despite the stock's poor performance, 10 of 15 brokerage firms still rate it a "buy" or better, with not a single "sell" to be found. 

  • BWLD ​is having some troubles of its own this morning, in light of the company's third-quarter profit and revenue misses. The shares are looking at a 14.4% drop out of the gate, which would put them in territory not seen since early July. What's more, after settling at $184.40 last night, Buffalo Wild Wings was barely managing to hold a year-to-date lead -- and will almost certainly give it up today. Elsewhere, analysts are rubbing salt in the stock's wounds, with no fewer than nine brokerage firms reducing their price targets. Credit Suisse is apparently the most skeptical, setting its mark the lowest, at $152. This is all fine with BWLD option speculators, though. The equity's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.62 indicates a healthier-than-usual preference for long puts over calls, as it falls in the 89th percentile of its annual range. 

  • Following mixed quarterly resultsPYPL is 5.5% lower ahead of the open -- certainly not the post-earnings reaction some on the Street were expecting. In the meantime, Citigroup and J.P. Morgan Securities both lowered their price targets to $44 -- though this still marks a big premium to Wednesday's close at $36.52, and territory never before charted -- while Canaccord Genuity raised its target to the same level. Looking to the options pits, Paypal Holdings Inc call buyers may be kicking themselves this morning. The stock's 10-day call/put volume ratio at the ISE, CBOE, and PHLX has jumped from 1.81 to 6.22 over the past week, suggesting a number of speculators have been upping the ante on post-event upside for PYPL. 
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