Analyst Downgrades: Fitbit Inc, Illumina, Inc., and Under Armour Inc

Analysts downwardly revised their ratings and price targets on Fitbit Inc (FIT), Illumina, Inc. (ILMN), and Under Armour Inc (UA)

by Kirra Fedyszyn

Published on Jan 11, 2016 at 9:24 AM

Analysts are weighing in on wearable tech specialist Fitbit Inc (NYSE:FIT), genetic analysis interest Illumina, Inc. (NASDAQ:ILMN), and athletic apparel concern Under Armour Inc (NYSE:UA)Here's a quick roundup of today's bearish brokerage notes on FIT, ILMN, and UA.

  • FIT is pointed 0.8% higher ahead of the bell, despite a steep price-target cut to $30 from $54 at Baird. Fitbit Inc hit a new low of $20.25 last Thursday, as traders jeered its new Blaze model, and closed out the week at $21.52. The latest bearish analyst note comes just after reports that many FIT user accounts have been hacked, and after a national class action lawsuit was filed. The stock has been struggling since August -- less than two months after it began trading publicly -- but 14 out of 20 brokerages providing coverage still call FIT a "buy" or better. Today's bounce could be an expected correction for the shares, as the equity's 14-day Relative Strength Index (RSI) of 25 is in oversold territory.
  • ILMN is set to pop 4.3%, after the firm said it will form a new company to enable early cancer screenings through a simple blood test. Still, Evercore ISI and Deutsche Bank slashed their price targets on the stock, to $177 and $178, respectively. Illumina, Inc. has been falling hard since the end of December, closing at $165.17 on Friday, but near-term option traders are more call-biased than usual. Specifically, ILMN has a Schaeffer's put/call open interest ratio (SOIR) of 0.81 -- lower than 92% of comparable readings from the past year. 
  • UA is off 5% in electronic trading, after closing at $75.00 on Friday. Morgan Stanley cut its rating on Under Armour Inc to "underweight," while lowering its price target to $62 from $103. D.A. Davidson also cuts its price target, to $105 from $123. The shares have been slipping for months, bringing their 14-day RSI to 27 -- in oversold territory. Meanwhile, short interest on UA currently accounts for 12.8% of the stock's available float , or nearly eight days' of trading, at typical volumes.

A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.
Google Postpones Android Reveal, "Now is Not the Time to Celebrate"
"Now is not the time to celebrate," Google said in a message on its website
ZNGA Zooms to 8-Year High on Billion-Dollar Deal
ZNGA is planning to buy Peak for $1.8 billion
Huge New Legal Marijuana Market Has Shortage Crisis
250 million Europeans have access to medical marijuana. There's already a shortage....