Analyst Downgrades: Macy's, Inc., Fitbit Inc, and JPMorgan Chase & Co.

Analysts downwardly revised their ratings and price targets on Macy's, Inc. (M), Fitbit Inc (FIT), and JPMorgan Chase & Co. (JPM)

by Kirra Fedyszyn

Published on Feb 24, 2016 at 9:29 AM
Updated on Feb 24, 2016 at 9:42 AM

Analysts are weighing in on retail interest Macy's, Inc. (NYSE:M), wearable fitness stock Fitbit Inc (NYSE:FIT), and financial firm JPMorgan Chase & Co. (NYSE:JPM). Here's a quick roundup of today's bearish brokerage notes on M, FIT, and JPM.

  • M is headed 2% lower at the opening bell, despite posting earnings that exceeded expectations Tuesday morning. Stifel cut its rating on Macy's, Inc. to "hold" from "buy" today, citing concerns about the company's growing expenses. Meanwhile, BofA-Merrill Lynch, Barclays, and Cowen all increased their price targets on M, while Deutsche Bank cut its price target to $39 from $43. It looks like the stock will be erasing some of its 20% year-to-date lead today, which could have options bulls sweating. M closed Tuesday at $42.32.
  • A price-target cut to $24 at Barclays has FIT pointed 2.4% lower in electronic trading -- and ready to hit a new record low -- after settling at $13.08 on Tuesday. Fitbit Inc dropped sharply on Tuesday as current-quarter guidance disappointed investors. The stock has been in a downtrend since last August, bottoming out at $12.90 less than two weeks ago. But 76% of analysts still call FIT a "buy" or better, and the options crowd has been surprisingly optimistic, too. More than three FIT calls have been bought to open for each put in the last 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The shares could be headed for a series of lower lows, should these bulls begin to jump ship.
  • JPM is set to drop 1.5% at the open after a round of bearish brokerage notes, including price-target cuts from Nomura, Goldman Sachs, Jefferies, Bernstein, and BMO. Goldman Sachs set the lowest target at $65 -- a 16% premium to the stock's Tuesday closing price of $56.12. JPMorgan Chase & Co. has been on the rebound from its near-six-month low on Feb. 11, but option traders don't seem to be buying a rally just yet. At the ISE, CBOE, and PHLX, the stock's 50-day put/call volume ratio of 0.86 is still higher than 90% of all readings in the past year.
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