Analyst Downgrades: Office Depot Inc, Nokia Corp, and Fossil Group Inc

Analysts downwardly revised their ratings and price targets on Office Depot Inc (NASDAQ:ODP), Nokia Corp (ADR) (NYSE:NOK), and Fossil Group Inc (NASDAQ:FOSL)

May 11, 2016 at 9:24 AM

Analysts are weighing in on retailer Office Depot Inc (NASDAQ:ODP), telecom stock Nokia Corp (ADR) (NYSE:NOK), and accessories specialist Fossil Group Inc (NASDAQ:FOSL). Here's a quick roundup of today's bearish brokerage notes on ODP, NOK, and FOSL.

ODP is set to lose roughly one-third of its value at the open, after a federal judge blocked the company's planned merger with Staples, Inc. (NASDAQ:SPLS) -- prompting the two office supply magnates to terminate their agreement. As such, Office Depot Inc -- which settled yesterday at $6.09 -- is on track to open at a two-year low. Adding insult to injury, Jefferies lowered its opinion to "hold" and its price target to $9, UBS reduced its rating to "sell" and its price target to $4, and Goldman Sachs slashed its price target to $5.80. Options traders across the major exchanges are likely to feel the heat, too, considering how bullish they've been. During the past 10 weeks, traders have bought to open 4.34 calls for every put at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- a ratio that outstrips two-thirds of all others taken in the last year.

Yesterday, NOK tumbled to a two-year low of $5.26 on lackluster earnings and a cautious outlook, before settling at $5.31. Additional losses could be in store today, following a raft of bearish brokerage notes. Specifically, no fewer than 12 analysts reduced their price targets on the stock, with Canaccord Genuity setting the lowest bar, at $5.50. In recent months, options traders at the ISE, CBOE, and PHLX have been rolling the dice on downside. Nokia Corp's 50-day put/call volume ratio of 0.99 ranks in the 80th percentile of its annual range.

Fresh off last night's earnings miss and downbeat profit forecast, FOSL is getting pummeled by the brokerage crowd. So far, at least six analysts have slashed their price targets on the stock -- including Goldman Sachs, which reduced its outlook by $3 to $23. In pre-market trading, Fossil Group Inc has given up nearly 33% after settling yesterday at $40.10, putting it on pace to open at a six-year low. Short sellers should be pleased. Over one-fifth of FOSL's float is sold short, representing 8.3 times the stock's average daily trading volume.

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