Analyst Downgrades: Apple Inc., Micron Technology, Inc., and Bed Bath & Beyond Inc.

Analysts downwardly revised their ratings on Apple Inc. (AAPL), Micron Technology, Inc. (MU), and Bed Bath & Beyond Inc. (BBBY)

by Kirra Fedyszyn

Published on Dec 23, 2015 at 9:28 AM

Analysts are weighing in on tech blue chip Apple Inc. (NASDAQ:AAPL), chipmaker Micron Technology, Inc. (NASDAQ:MU), and retail interest Bed Bath & Beyond Inc. (NASDAQ:BBBY)Here's a quick roundup of today's bearish brokerage notes on AAPL, MU, and BBBY.

  • AAPL is pointed slightly higher ahead of the bell, after closing Tuesday at $107.23, even after FBR and Stifel cut their price targets on the stock to $150 and $140, respectively. FBR analyst Daniel Ives warned that "speed bumps could be ahead" for Apple Inc., and -- like so many others of late -- downwardly revised his forecast for iPhone sales over the next three fiscal quarters. Furthermore, Ives said the iPhone 7 product cycle could "make or break" the tech titan. Still, 23 out of 32 analysts following the stock maintain "buy" ratings, without a "sell" on the books. And while option traders are less bullish than usual on the stock, AAPL's 10-day call/put volume ratio of 1.65 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) indicates long calls have been crossing the tape at nearly twice the rate of puts over the last two weeks.
  • MU is set to drop 6% this morning -- and could touch annual lows -- as analysts react to earnings. Micron Technology, Inc. reported fiscal first-quarter revenue that fell short of estimates, and forecast a surprise current-quarter loss. As such, the stock was hit by no fewer than 11 price-target cuts, along with a downgrade to "outperform" from "strong buy" at Raymond James. The shares settled at $14.61 yesterday, and today's drop could have options bulls hitting the bricks, as the stock's 10-day call/put volume ratio on the ISE, CBOE, and PHLX is 3.19 -- indicating more than three calls bought for each put, and higher than 77% of comparable readings over the past year. An unwinding of these positions could push the shares even lower.
  • BBBY is 6.2% lower in electronic trading, after the company lowered its third-quarter guidance, and warned of low sales during its fourth quarter. Baird, Wedbush, and Credit Suisse all slashed their price targets in response -- to $54, $48, and $51, respectively. Bed Bath & Beyond, Inc. has shed nearly a third of its value so far this year, and last Friday hit a new four-year low of $49.98 -- which could be breached in early action today. Unsurprisingly, only five of the 19 analysts covering BBBY rate it better than a "hold." And traders are bearish, as well -- almost 11% of the stock's available float is now sold short, accounting for more than seven days of trading, at the equity's typical volumes. BBBY closed at $51.32 on Tuesday.

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