Analyst Downgrades: Best Buy Co Inc, Twitter Inc, and Ferrari NV

Analysts downwardly revised their ratings on Best Buy Co Inc (BBY), Twitter Inc (TWTR), and Ferrari NV (RACE)

Nov 16, 2015 at 9:17 AM
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Analysts are weighing in on electronics retailer Best Buy Co Inc (NYSE:BBY), microblogging titan Twitter Inc (NYSE:TWTR), and Wall Street new kid Ferrari NV (NYSE:RACE). Here's a quick roundup of today's bearish brokerage notes on BBY, TWTR, and RACE.

  • Last week was especially hard on retail, and BBY was no exception, settling Friday at $32.04 -- its lowest close since Aug. 24, when the stock hit an annual low of $28.32. This morning, things aren't looking up for Best Buy Co Inc, with the shares pointed 1.6% lower after a downgrade to "sector perform" from "outperform" at RBC. The brokerage firm also trimmed its price target to $36 from $42. In the wake of recent earnings misses out of the retail sector, option traders are also upping the bearish ante ahead of Best Buy's quarterly report, slated for release before the open on Thursday. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio of 1.98 stands higher than 84% of all other readings from the past year.
  • TWTR was slapped with a pair of price-target cuts, with MKM Partners and Moffett Nathanson both reducing their targets to $29. On the charts, TWTR has shed 11.5% so far in November, and is testing a familiar foothold in the $25 region, settling Friday at $25.18. Short sellers have been piling on Twitter Inc, with short interest growing by 28.5% during the past two reporting periods. These bearish bets now account for 10.6% of TWTR's total available float.
  • RACE has struggled since going public on Oct. 21, closing Friday at $51.40 -- just short of its IPO price of $52. The stock is headed 1.8% lower in pre-market action, as European stocks turn south and as the luxury automaker digests new analyst coverage. J.P. Morgan Securities initiated coverage with a "neutral" rating and lukewarm $52 price target, while Exane BNP Paribas offered up an ugly "underperform" opinion and a $46 price target -- in uncharted territory for Ferrari NV.

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