Analyst Downgrades: Resolute Forest Products Inc, LinkedIn Corp, and Wells Fargo & Co

Analysts downwardly revised their ratings and price targets on Resolute Forest Products Inc (RFP), LinkedIn Corp (LNKD), and Wells Fargo & Co (WFC)

Apr 25, 2016 at 10:05 AM
facebook X logo linkedin


Analysts are weighing in on wood and paper product specialist Resolute Forest Products Inc (NYSE:RFP), social media stock LinkedIn Corp (NYSE:LNKD), and bank stock Wells Fargo & Co (NYSE:WFC). Here's a quick roundup of today's bearish brokerage notes on RFP, LNKD, and WFC.

  • RFP is 5.9% lower at $5.65, after RBC and CIBC both downgraded the stock, with the latter slashing its rating to "sector underperformer" from "sector performer" and lowering its price target to $5 from $6. Resolute Forest Products has been on a downtrend for the past year, with resistance at its overhead 150-day moving average blocking its latest attempt at a recovery. In fact, the shares haven't managed to close above this trendline in more than 52 weeks, and are off 25% in 2016 alone. Only one of the five analysts providing coverage recommends buying the stock, and the portion of RFP's total float wrapped up in short interest would take more than seven sessions to cover, at the equity's average daily volume.
  • Wedbush cut its price target on LNKD to $130 from $200, but the shares are essentially flat, at $119.48. While analysts have been wary of the security -- which has been stuck in the $110 to $120 region since mid-February, and is currently facing resistance at its 60-day moving average -- option traders appear to be betting on a rally. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio of 1.96 ranks higher than 98% of all comparable readings from the last year. Looking ahead, LinkedIn Corp is due to report first-quarter earnings this Thursday.
  • WFC is down 0.7% to $50.26, after a price-target cut to $58 from $60 at Nomura. Wells Fargo & Co reported quarterly earnings just above expectations earlier this month, helping the shares break out above former resistance, but WFC has seen only bearish attention from the brokerage bunch since. Option traders don't seem impressed with WFC, either. At the ISE, CBOE, and PHLX, the equity's 10-day put/call volume ratio of 1.18 is still parked in the 92nd 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!
 

*SPONSORED CONTENT*

How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.

*SPONSORED CONTENT*