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Analyst Update: Square, Tableau Software, Churchill Downs

Analysts revised their ratings and price targets on Square Inc (SQ), Tableau Software Inc (DATA), and Churchill Downs, Inc. (CHDN)

May 6, 2016 at 2:42 PM
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Analysts are weighing in on payment processor Square Inc (NYSE:SQ), tech stock Tableau Software Inc (NYSE:DATA), and racing and gaming interest Churchill Downs, Inc. (NASDAQ:CHDN). Here's a quick roundup of today's brokerage notes on SQ, DATA, and CHDN.

  • SQ has sunk 19.5% to $10.50 after the company's wider-than-predicted first-quarter loss prompted Wedbush to downgrade the stock's rating to "underperform" and lower its price target to $9 from $11. The shares surged to a record high at the end of March, but after running into resistance in the $15.50-$16 region several times, have pulled sharply back over the past week. A lack of faith from the brokerage bunch has been clear, and short sellers have been increasing their positions of late. Currently 9.3% of Square Inc's float is wrapped up in short interest -- accounting for more than a week worth of trading, at the stock's typical daily pace.
  • DATA is 10.6% lower at $45.57, as no fewer than five brokerage firms lowered their price targets on the security -- with Mizuho setting the bar lowest, at $50 -- following the company's better-than-expected quarterly earnings report. BMO broke the trend, raising its price target to $51 -- a modest premium over the stock's current value. Tableau Software Inc is off nearly 52% in 2016, due in large part to a huge early February bear gap following the firm's previous earnings report. Two-thirds of analysts still rate DATA a "buy" or better, but options traders have not been so kind. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 0.89 sits higher than three-fourths of the past year's readings.
  • CHDN received an upgrade to "buy" from "neutral" at Hilliard Lyons today, boosting the shares 1.6% to $129.46 ahead of tomorrow's Kentucky Derby. Specifically, the brokerage firm said recent downside on the stock is "overdone." Churchill Downs, Inc. has spent most of the past two weeks falling hard on the charts, with last Thursday's first-quarter earnings miss exacerbating the pain. Today's small recovery won't be too pleasing for short sellers, as short interest represents nearly 9% of CHDN's available float. At the stock's typical daily pace, it would take nearly three weeks for short sellers to cover all of these bearish positions.
For other stocks in analysts' crosshairs, read Analyst Upgrades: Yelp Inc, Activision Blizzard, Inc., and Goldcorp Inc. and Analyst Downgrades: KemPharm Inc, Endo International plc, and FireEye Inc.
 
 

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