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Analyst Downgrades: GoPro Inc, Buffalo Wild Wings, and Shutterfly, Inc.

Analysts downwardly revised their ratings and price targets on GoPro Inc (GPRO), Buffalo Wild Wings (BWLD), and Shutterfly, Inc. (SFLY)

Feb 4, 2016 at 9:29 AM
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Analysts are weighing in on action camera maker GoPro Inc (NASDAQ:GPRO), sports bar operator Buffalo Wild Wings (NASDAQ:BWLD), and photo phenom Shutterfly, Inc. (NASDAQ:SFLY). Here's a quick roundup of today's bearish brokerage notes on GPRO, BWLD, and SFLY.

  • GPRO is blazing a pre-market path lower, after the company reported a surprise quarterly loss, offered up disappointing revenue guidance, and named a new chief financial officer following Jack Lazar's resignation. Throwing salt into the wounds, Dougherty downgraded its assessment to "neutral" from "buy," while no fewer than seven other analysts cut their price targets on the stock. Ahead of the bell, GoPro Inc has sunk nearly 15%, and is poised to open at a new all-time low after closing at $10.71 yesterday. Option traders can't complain. Over the past 10 weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GPRO has racked up a put/call volume ratio of 0.68 -- in the bearish 98th percentile of its annual range.

  • BWLD is up 1.4% in electronic trading, even though the restaurant chain reported lower-than-expected quarterly results and received a raft of negative analyst attention. While Raymond James boosted its rating to "outperform" from "market perform," at least eight brokerage firms lowered their price targets -- with Credit Suisse setting the bar lowest at $142. On the charts, Buffalo Wild Wings touched an annual low of $138.31 yesterday amid a norovirus scare, before settling at $143.64. Short sellers are crossing their fingers for even lower lows. During the last reporting period, short interest on BWLD popped nearly 10%, and now represents over 16.3% of the stock's total float. At the equity's average daily trading volume, it would take more than one week to buy back these bearish bets.

  • SFLY is bracing for a 9.2% drop out of the gate, on the heels of an earnings miss and lackluster sales guidance. To make matters worse, RBC, Barclays, Jefferies, and Craig-Hallum all cut their price targets on the stock, which settled Wednesday at $39.63, down 11% in 2016. At the ISE, CBOE, and PHLX, traders have been buying to open Shutterfly, Inc. puts over calls by an obscene margin of late. Specifically, the stock's 10-day put/call volume ratio checks in at 3.60, with almost four long puts initiated for each call.
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