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

Analysts downwardly revised their ratings and price targets on Apple Inc. (NASDAQ:AAPL), Qorvo Inc (NASDAQ:QRVO), and Bed Bath & Beyond Inc. (NASDAQ:BBBY)

Josh Selway

Jan 27, 2016 at 9:28 AM

Analysts are weighing in on iPhone creator Apple Inc. (NASDAQ:AAPL), Apple supplier Qorvo Inc (NASDAQ:QRVO), and retail interest Bed Bath & Beyond Inc. (NASDAQ:BBBY). Here's a quick roundup of today's bearish brokerage notes on AAPL, QRVO, and BBBY.

Despite announcing its most profitable quarter ever, AAPL is looking at a roughly 3% drop at the open, after the company projected a revenue decline for the current quarter and iPhone sales missed estimates. Several brokerage firms have since lowered their prices targets, though the lowest mark -- from both Stifel and UBS -- came in at just $120, which still marks a 20% premium to Tuesday's settlement of $99.99. Apple Inc. was already on pace to close below its 30-month moving average for the first time since January 2014, and additional bearish notes from the Street could pressure the shares further. Specifically, 71% of analysts say AAPL is at least a "buy," and there's still not one "sell" recommendation on Wall Street.

Of course, AAPL earnings have broad implications, and supplier QRVO is feeling the effects this morning. Shares of the chipmaker are pointed 0.7% lower in electronic trade, after Citigroup weighed in on several Apple partners. For QRVO, the brokerage firm lowered its price target by $8 to $42, and the negative attention could have Qorvo Inc flirting with annual lows once again, after closing at $39.76 on Tuesday. Option traders seemingly had different expectations for QRVO. The stock's 50-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) comes in at 7.38 -- just 2 percentage points from an annual high.

BBBY has been on a downward path since roughly the beginning of 2015. Year-over-year, the stock is off 43.5% at $44.06, and more trouble is on the way. Citigroup this morning lowered its outlook to "sell" from "neutral," and its price target to $37, while KeyBanc downgraded the shares to "underweight" from "sector weight." Bed Bath & Beyond Inc. is now off 4% in pre-market action, which is exactly what short sellers want to hear. Almost 11% of BBBY's float is sold short, and at the stock's average pace of trading, it would take bears close to six days to repurchase these shares.

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