Analyst Downgrades: Netflix, Inc., Potash Corporation of Saskatchewan, and Illumina, Inc.

Analysts downwardly revised their ratings and price targets on Netflix, Inc. (NASDAQ:NFLX), Potash Corporation of Saskatchewan (USA) (NYSE:POT), and Illumina, Inc. (NASDAQ:ILMN)

Apr 19, 2016 at 9:14 AM
facebook X logo linkedin

Analysts are weighing in on streaming video provider Netflix, Inc. (NASDAQ:NFLX), fertilizer firm Potash Corporation of Saskatchewan (USA) (NYSE:POT), and genetic analysis stock Illumina, Inc. (NASDAQ:ILMN). Here's a quick roundup of today's bearish brokerage notes on NFLX, POT, and ILMN.

  • NFLX is off 8.5% ahead of the open after the company's first-quarter earnings release. While quarterly profit beat forecasts and revenue met expectations, Netflix, Inc.'s current-quarter subscriber growth outlook disappointed. NFLX has added close to 34% in the past 12 months to trade at $108.40, but is now set to open back below the century level. This potential price action is likely to disappoint bullish options traders. Making matters worse, analysts are trimming their expectations in a hurry. No fewer than seven brokerage firms cut their price targets on NFLX this morning, though the lowest of which -- from Baird -- came in at just $108. 
  • POT is so far unchanged in electronic trading, despite a bearish note from Barclays. The brokerage firm dropped the stock's rating to "underweight" from "equal weight," while reducing its price target to $14 from $16. The shares have been moving steadily lower for the past year, hitting a nine-year low of $14.64 in January, and closing Monday at $16.76. Most other analysts share Barclays' grim outlook. Specifically, 13 of 18 covering analysts call Potash Corporation of Saskatchewan (USA) a "hold" or worse. 
  • ILMN is getting crushed in pre-market trading, down 19.2%, after the company's preliminary first-quarter revenue results came in well below the Street's expectations. At $178.13, Illumina, Inc. is a far cry from its all-time high of $242.37, seen last July, but the stock just yesterday managed its first close atop its 200-day moving average this year. Regardless, BofA-Merrill Lynch cut its rating on ILMN to "neutral" this morning, while Goldman Sachs, Barclays, Cowen, and Leerink all lowered their price targets. The pending sell-off should benefit options traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), however. The stock's 10-day put/call volume ratio across these exchanges sits at 1.26, in the 69th percentile of its annual range. 
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI