Analyst Downgrades: Walt Disney Co, CTI BioPharma Corp, and ARM Holdings plc

Analysts downwardly revised their ratings and price targets on Walt Disney Co (DIS), CTI BioPharma Corp (CTIC), and ARM Holdings plc (ADR) (ARMH)

by Kirra Fedyszyn

Published on Feb 10, 2016 at 9:56 AM
Updated on Feb 10, 2016 at 9:56 AM

Analysts are weighing in on media titan Walt Disney Co (NYSE:DIS), drugmaker CTI BioPharma Corp (NASDAQ:CTIC), and tech interest ARM Holdings plc (ADR) (NASDAQ:ARMH). Here's a quick roundup of today's bearish brokerage notes on DIS, CTIC, and ARMH.

  • DIS is down 4% this morning at $88.71 -- and earlier tagged a new 52-week low of $86.25 -- but is finding support in the $88-to-$89 region. Concern over declining profit at ESPN, the Disney Channels, and ABC is overshadowing the company's better-than-expected, record-setting fiscal first-quarter profit, thanks to the success of the latest "Star Wars" film. Plus, Walt Disney Co received no fewer than four price-target cuts, including one from Cowen and Company to $88 from $92. In the options pits, bearish sentiment has been near a yearly high, and those purchasing near-term pre-earnings bets were willing to pay a pretty penny. In fact, DIS' Schaeffer's Volatility Index (SVI) of 56% rests above all other comparable readings taken in the past year.
  • CTIC is down 41.4% at $0.29 this morning -- and just off a new all-time low of $0.26 -- after the company said last night it has withdrawn an application for its experimental blood cancer treatment, after the Food and Drug Administration (FDA) placed the investigational drug trial on a full clinical hold. Stoking the bearish flames is a rating cut to "neutral" from "overweight" at Piper Jaffray. The stock has been sliding lower over the past two years, and, more recently, has underperformed the S&P 500 Index (SPX) by about 54 percentage points in the last three months. Against this backdrop, short interest has been creeping up, and 11.9% of CTI BioPharma Corp's available float is currently sold short. Today, however, the security has been placed on the short-sale restricted list.
  • ARMH is down 6% out of the gate at $38.90, as the company's concern over future growth overshadows a strong fourth-quarter showing. Additionally, Canaccord Genuity lowered its price target on ARM Holdings plc to $55 from $60. What's more, although option traders have been bracing for more downside for an equity that's shed 13% year-to-date, 12 out of 17 analysts rate the stock a "buy" or better. This leaves the door open for future downgrades, which could exacerbate the shares' technical struggles.
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