Analysts downwardly revised their ratings and price targets on Boeing Co (BA), Netflix, Inc. (NFLX), and Activision Blizzard, Inc. (ATVI)
Analysts are weighing in on aerospace interest
Boeing Co (NYSE:BA), streaming content provider
Netflix, Inc. (NASDAQ:NFLX), and video game maker
Activision Blizzard, Inc. (NASDAQ:ATVI). Here's a quick roundup of today's bearish brokerage notes on BA, NFLX, and ATVI.
- After news of an SEC accounting probe broke on Thursday, BA gapped 6.8% lower, hitting a two-year low of $102.10 before settling at $108.44. This morning, the equity is pointed 1.4% lower, as J.P. Morgan Securities downgraded the stock to "neutral" from "overweight," while cutting its price target to $120 from $142. BofA-Merrill Lynch and RBC also lowered their price targets on Boeing Co, to $115 and $128, respectively. The security has lost 25% since the beginning of the year, slipping after reporting disappointing fourth-quarter earnings at the end of January. As such, option traders have done an about-face, turning distinctively bearish; at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BA's 10-day put/call volume ratio of 2.28 is higher than 98% of all readings taken in the past year.
- Citing strong competition and concerns about subscription growth, FBR downgraded NFLX to "market perform" from "outperform," with a price target set at $100. However, the shares seem to be shaking it off, pointed 0.8% higher in pre-market trading after closing at $86.35 on Thursday. While Netflix, Inc. has pulled back significantly since its December all-time high, the stock is still ahead almost 33% year-over-year. Bearish option traders have begun backing off in recent weeks, bringing the equity's 50-day call/put volume ratio on the ISE, CBOE, and PHLX to 1.21 -- higher than nearly three-fourths of the past year's readings. And a fair amount of buying power remains on the sidelines -- about 13% of NFLX's available float is still wrapped up in short interest.
- ATVI reported fourth-quarter earnings last night that missed analyst estimates, prompting no fewer than eight brokerages to lower their price targets on the stock -- with the deepest cut coming from Barclays, to $32 from $40. Activision Blizzard, Inc. is set to drop 5.5% at the bell, after closing at $30.52 on Thursday. Bearish option traders will likely be cheering today's slip, but short sellers may be wishing they had held on longer -- short interest on ATVI has dropped sharply in recent weeks, and now account for less than 4% of the stock's total float.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!