Analyst Downgrades: Smith & Wesson Holding Corp, Fitbit Inc, and Fiat Chrysler Automobiles NV

Analysts downwardly revised their ratings and price targets on Smith & Wesson Holding Corp (SWHC), Fitbit Inc (FIT), and Fiat Chrysler Automobiles NV (FCAU)

by Kirra Fedyszyn

Published on Jan 6, 2016 at 9:17 AM

Analysts are weighing in on firearms producer Smith & Wesson Holding Corp (NASDAQ:SWHC), wearable tech concern Fitbit Inc (NYSE:FIT), and automaker Fiat Chrysler Automobiles NV (NYSE:FCAU)Here's a quick roundup of today's bearish brokerage notes on SWHC, FIT, and FCAU.

  • After adding more than 11% to close at $25.86 on Tuesday -- and touching a record high of $26.54 -- SWHC is headed 2.4% lower this morning, after Wedbush downgraded the stock to "neutral" from "buy," while boosting its price target by $2 to $26. "We are taking money off the table," the analysts said, considering SWHC surged more than 150% over the past year. RBC also raised its price target on Smith & Wesson Holding Corp, but only by $1 to $24 -- still below the current share price. This analyst attention comes on the heels of Tuesday's emotional speech from President Obama, as he announced new gun control policies, which focused on licensing and background checks. Out of nine brokerages following the stock, six still call it a "buy," but more downgrades could be ahead if the new policies begin to affect SWHC's bottom line.
  • FIT is set to fall 2.5% -- and deeper into all-time-low territory -- after an atrocious day on Tuesday, in which the stock hit a record low of $24.03 before closing at $24.30. RBC slashed its price target on Fitbit Inc to $40 from $45 this morning, as traders make their feelings about the company's newest wearable fitness tracker -- and theoretical Apple Watch competitor -- the Blaze abundantly clear. Short interest on the stock already rose nearly 39% during the last two reporting periods, and now accounts for about a week of trading, at FIT's average daily pace. However, 14 out of 20 analysts maintain "buy" or better ratings, suggesting more negative attention could be in store.
  • Goldman Sachs dropped its price target on FCAU to $13 from $19.60, sending the shares down 5.3% in pre-market trading. Fiat Chrysler Automobiles NV has been trending lower since hitting an all-time of $11.20 last March, and short sellers were cheering earlier this week, when the company completed its spin-off of Ferrari NV (NYSE:RACE). In addition, yesterday's December sales figures did little to help FCAU, which closed at $9.07. Short interest currently accounts for 8.7% of the stock's available float, and, at FCAU's typical pace of trading, would take more than three weeks to buy back. 

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