Analyst Downgrades: Kinder Morgan Inc, F5 Networks, Inc., and Smith & Wesson Holding Corp

Analysts downwardly revised their ratings on Kinder Morgan Inc (NYSE:KMI), F5 Networks, Inc. (NASDAQ:FFIV), and Smith & Wesson Holding Corp (NASDAQ:SWHC)

by Josh Selway

Published on Dec 9, 2015 at 9:48 AM

Analysts are weighing in on energy infrastructure issue Kinder Morgan Inc (NYSE:KMI), tech firm F5 Networks, Inc. (NASDAQ:FFIV), and firearm fanatic Smith & Wesson Holding Corp (NASDAQ:SWHC)Here's a quick roundup of today's bearish brokerage notes on KMI, FFIV, and SWHC.

  • KMI has struggled mightily lately amid a sector-wide swoon for energy. The stock has dropped 30% of its value this month to trade at $16.54, and yesterday hit an all-time low of $15.06. The negative analyst attention has been pouring in, and it's no different this morning, with RBC lowering its outlook to "sector perform" from "outperform," while reducing its price target to $19 from $29 -- citing the company's decision yesterday to lower its quarterly dividend by 75%. Elsewhere, Raymond James lowered its price target to $17 from $20, and Credit Suisse slashed its target to $18 from $25. On the other hand, Moody's changed its outlook to "stable" from "negative," helping the shares 0.8% higher at the open. Today's gains could spring from the fact that Kinder Morgan Inc has been severely oversold. The stock's 14-day Relative Strength Index (RSI) comes in at just 15. 
  • FFIV has dropped 2.4% at the open, following a downgrade to "reduce" from "neutral" at Nomura, which also cut its price target by $20 to $90 -- annual-low territory -- saying it "sees little scope for a sustained sales recovery for the company." Underperformance is nothing new for F5 Networks, Inc. At $100.90, the shares have dropped almost 23% in 2015, and earlier touched an annual low of $99.76. More losses could be in store if call buyers unwind their bets. FFIV's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) comes in at 3.02, higher than 94% of all other readings from the past year. 
  • SWHC is giving option bulls the post-earnings reaction they were betting on, with the shares up 1.6% at the open. The firearm maker posted better-than expected results last night and raised its full-year outlook. On the sentiment front, RBC cut its opinion to "sector perform" from "outperform" -- though the brokerage firm was also one of four to raise its price target on Smith & Wesson Holding Corp, setting the bar at $23 -- which represents all-time-high territory. Currently, 78% of covering brokerage firms say SWHC is a "buy" or better. That isn't exactly surprising. At $21.75, the security has more than doubled in the past 12 months, and earlier today reached an eight-year peak of $22.25. 

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