Analyst Downgrades: Yelp Inc, Skyworks Solutions Inc, and Ambarella Inc

Analysts downwardly revised their ratings and price targets on Yelp Inc (YELP), Skyworks Solutions Inc (SWKS), and Ambarella Inc (AMBA)

Jan 14, 2016 at 9:25 AM
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Analysts are weighing in on business review site Yelp Inc (NYSE:YELP), Apple Inc. (NASDAQ:AAPL) supplier Skyworks Solutions Inc (NASDAQ:SWKS), and GoPro Inc (NASDAQ:GPRO) supplier Ambarella Inc (NASDAQ:AMBA)Here's a quick roundup of today's bearish brokerage notes on YELP, SWKS, and AMBA.

  • YELP is facing a 6.5% drop at the open, thanks to a downgrade to "sell" from "neutral" at B. Riley, which also set its price target at $15 -- in all-time-low territory. Yelp Inc has been slipping on the charts for nearly two years, giving up almost half of its value in 2015, and closed Wednesday at $22.07 -- not far off a two-year low of $20.50, touched in August. Of the 29 brokerages currently following YELP, 21 say it is a "hold" or worse. And traders appear to agree -- short interest on the stock accounts for 17% of its total available float, or more than six days' of trading, at YELP's average pace of trading.
  • Barclays, Craig-Hallum, and BofA-Merrill Lynch all slashed their price targets on Apple supplier SWKS -- to $93, $100, and $85, respectively. Skyworks Solutions Inc hit a new yearly low of $61.90 on Wednesday, before closing at $62.16. The shares have been taking a beating lately, thanks to concerns about iPhone sales, and have shed nearly 20% of their value so far in 2016. Still, all 17 analysts providing coverage on SWKS call it a "buy" or better. And near-term option traders have taken a bullish spin, too. The security has a Schaeffer's put/call open interest ratio (SOIR) of 0.49 -- just 1 percentage point from an annual low. In other words, among options expiring in the next three months, traders have rarely been more call-heavy in the past year.
  • After hitting an annual low of $40.22 on Monday, AMBA is down 8.3% in electronic trading, after partner GoPro slashed holiday sales guidance and announced job cuts. As a result, Pacific Crest and Morgan Stanley cut their price targets on AMBA to $72 and $56, respectively. Ambarella Inc has been following GPRO lower since August, and traders have been betting on more downside. More than 44% of the stock's available float is currently sold short -- which would take almost two full weeks of trading to buy back, at AMBA's average daily pace. But analysts haven't abandoned all hope yet -- eight out of 13 still rate the security a "strong buy." AMBA closed Wednesday at $44.59.


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