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)

Dec 9, 2015 at 9:48 AM
facebook twitter linkedin

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. 

Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!