Analyst Update: General Motors Company, Seadrill Ltd, and Akamai Technologies, Inc.

Analysts adjusted their ratings and price targets on General Motors Company (NYSE:GM), Seadrill Ltd (NYSE:SDRL), and Akamai Technologies, Inc. (NASDAQ:AKAM)

by Josh Selway

Published on Jan 11, 2016 at 3:00 PM

Analysts are weighing in today on automaker General Motors Company (NYSE:GM), energy concern Seadrill Ltd (NYSE:SDRL), and IT issue Akamai Technologies, Inc. (NASDAQ:AKAM). Here's a quick roundup of today's brokerage notes on GM, SDRL, and AKAM.

  • GM has added 1.6% at $29.87, after Credit Suisse upgraded the stock's rating to "outperform" from "neutral," while raising its price target to $38 from $37. The brokerage firm cited the automaker's stronger-than-expected free cash flow and improving efficiency as the reasons behind the upbeat note. After a relatively strong end to 2015, General Motors Company has taken a nosedive, giving back over 18% since its December high of $36.52. Most analysts are still believers, though, with seven of 13 covering brokerage firms handing out "buy" or better ratings, with no "sells" to be found. If GM doesn't turn things around on the charts -- or suffers headwinds related to the automaker's recently commenced ignition-switch trial -- it could certainly be susceptible to downgrades from the brokerage bunch. 

  • SDRL is taking it on the chin today, sliding 5.3% to $2.67, and earlier touching an all-time low of $2.60, following some bearish analyst attention. Specifically, Simmons cut its opinion to "underweight" from "neutral," while Cowen and Company reduced its price target to $3 from $8. Pessimism is also prevalent in the stock's options pits, as its 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.76 is only 8 percentage points from an annual high. This isn't surprising, though. Seadrill Ltd has underperformed the broader S&P 500 Index (SPX) by more than 60 percentage points in the past three months.

  • AKAM over the weekend was hit with a price-target cut to $75 from $86 at Pacific Crest, though this still represents a nearly 66% premium to current levels. The shares were last seen at $45.26, off 5.9% on the day, bringing their 12-month hole to over 25%. Regardless, Akamai Technologies, Inc's 50-day call/put volume ratio at the ISE, CBOE, and PHLX of 2.54 is only 3 percentage points from an annual high, suggesting option traders are expecting a rebound.
For other stocks in analysts' crosshairs, read Analyst Upgrades: Wells Fargo & Co, Melco Crown Entertainment Ltd, and Devon Energy Corp and Analyst Downgrades: Fitbit Inc, Illumina, Inc., and Under Armour Inc.

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