Analyst Downgrades: Micron Technology, Inc., Delta Air Lines, Inc., and United Continental Holdings Inc

Analysts downwardly revised their ratings and price targets on Micron Technology, Inc. (MU), Delta Air Lines, Inc. (DAL), and United Continental Holdings Inc (UAL)

by Kirra Fedyszyn

Published on Apr 1, 2016 at 9:57 AM

Analysts are weighing in on chipmaker Micron Technology, Inc. (NASDAQ:MU), as well as airline stocks Delta Air Lines, Inc. (NYSE:DAL) and United Continental Holdings Inc (NYSE:UAL). Here's a quick roundup of today's bearish brokerage notes on MU, DAL, and UAL.

  • MU is 1.6% lower at $10.30, after Credit Suisse removed the stock from its "Global Focus" list. Micron Technology, Inc. got slammed with bearish brokerage notes yesterday after reporting disappointing quarterly revenue. Despite the wave of negative attention, MU hasn't seen much price action over the past week, and still sits at a 10.6% premium to its January two-year low of $9.31. Longer term, however, the shares are down 61.5% year-over-year. While sentiment in the option pits is already near a bearish peak, plenty of room remains for more analysts to lower their ratings, considering 13 of 21 have handed out "buy" or better opinions.
  • Deutsche Bank adjusted its ratings on several airlines, including DAL, which received a downgrade to "hold" from "buy," and a price-target cut to $55. This bearish note has sent the shares down 3.7% to $46.86. As of Thursday's close, Delta Air Lines, Inc. boasted 100% "buy" or better ratings from analysts, but today's bearish note could be the start of a sentiment shift -- especially if the stock gives up its foothold at the 40-day moving average. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 4.33 DAL calls for each put in the last 10 sessions, but this actually represents a modest pullback from recent call-buying levels, and ranks in the modest 59th percentile of its annual range.
  • One of the worst performers in April since 1972, UAL may be on track to repeat history after Deutsche Bank cut its rating to "hold" from "buy," while lowering its price target to $62. United Continental Holdings Inc is off 4.6% at $57.12, after failing to take out resistance in the $60-$62 area over the past month. Four-fifths of analysts rate UAL a "strong buy," suggesting the door is wide open for additional downgrades. Separately, short interest on the equity increased by 32% over the last two reporting periods, but still accounts for less than 4% of UAL's float -- leaving plenty more room for short sellers to increase their bearish bets.
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