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)

by Josh Selway

Published on 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 everAAPL 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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