Analyst Downgrades: Cisco Systems, Fossil Group, Nordstrom

Analysts downwardly revised their ratings on Cisco Systems, Inc. (NASDAQ:CSCO), Fossil Group Inc (NASDAQ:FOSL), and Nordstrom, Inc. (NYSE:JWN)

by Josh Selway

Published on Nov 13, 2015 at 10:03 AM
Updated on Jul 2, 2020 at 3:16 PM

Analysts are weighing in on IT giant Cisco Systems, Inc. (NASDAQ:CSCO), wrist watch enthusiast Fossil Group Inc (NASDAQ:FOSL), and retailer Nordstrom, Inc. (NYSE:JWN). Here's a quick roundup of today's bearish brokerage notes on CSCO, FOSL, and JWN.

  • Despite topping the Street's earnings expectations last night, CSCO is 4.3% lower today at $26.64, on a disappointing current-quarter outlook. No fewer than six brokerage firms have since lowered their price targets on the stock, with MKM Partners setting the bar the lowest at $29. On the other hand, Deutsche Bank raised its FY2016 per-share profit view to $1.81 from $1.66. Technically speaking, Cisco Systems, Inc. is still up over 14% from its late-August annual low of $23.03. Elsewhere, most of Wall Street is still bullish on the equity. Eighteen of 26 analysts say CSCO is a "buy" or better.
  • FOSL has dropped more than 30% to trade at $35.53, and earlier hit a five-year low of $35.29, after the firm last night presented lackluster quarterly sales, cut its full-year sales forecast for the third time, and agreed to buy wearable device maker Misfit. Even ahead of this morning's bear gap, the security had lost over half its value since the beginning of the year, and short sellers have been having a field day. Specifically, roughly one-quarter of Fossil Group Inc's float is sold short, representing over two weeks' worth of buying power, at average daily volumes. Adding even more pressure to the shares today are price-target reductions from no fewer than four brokerage firms. Nomura, for example, cut its expected price to $40 from $56. 
  • JWN is the latest retail loser, with the shares 15.7% lower at $53.49 -- and earlier touching a two-year low of $50.43 -- after the company missed its third-quarter earnings and sales expectations, and lowered its 2015 profit forecast. Analysts are now turning their backs on the equity, with no fewer than 11 lowering their price targets. The most skeptical was Barclays, setting its price target at $45 -- territory not seen since June 2012. As for option traders, they appear to be well-positioned for today's slide. Nordstrom, Inc.'s Schaeffer's put/call open interest ratio (SOIR) stands at 1.87, higher than 99% of all other readings from the past year. Said simply, short-term option traders are way more put-skewed than normal.

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