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Analyst Downgrades: General Electric Company, Infoblox Inc, and Michael Kors Holdings Ltd

Analysts downwardly revised their ratings and price targets on General Electric Company (GE), Infoblox Inc (BLOX), and Michael Kors Holdings Ltd (KORS)

May 12, 2016 at 10:00 AM
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Analysts are weighing in on digital industrial firm General Electric Company (NYSE:GE), tech stock Infoblox Inc (NYSE:BLOX), and accessories retailer Michael Kors Holdings Ltd (NYSE:KORS). Here's a quick roundup of today's bearish brokerage notes on GE, BLOX, and KORS.

  • J.P. Morgan Securities resumed coverage on GE with an "underweight" rating and a $27 price target, sending the stock 0.7% lower at $30.12. Since hitting a seven-year high of $32.05 to end March, the shares have been charting a series of lower highs and lows to test the round $30 level. As a result, bearish options traders have been setting their sights on General Electric Company. Across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 1.86 puts for every call during the last two weeks -- and the corresponding put/call volume ratio sits just 6 percentage points from a 12-month high.
  • BLOX saw its price target trimmed to $16 from $17 at D.A. Davidson, following a lackluster earnings report earlier this week. However, a reported buyout bid from Thoma Bravo has the stock 20.2% higher at $18.41. This represents the shares' best single-day percentage gain since Dec. 1. Short sellers are getting singed on Infoblox Inc's upside gap. After rising 22.2% in the latest reporting period, short interest now accounts for 14% of BLOX's float, or 4.5 times the stock's average daily trading level.
  • Following a disastrous day for retailers, KORS was hit with a price-target cut to $45 from $48 at Canaccord Genuity. As such, the stock is 1.3% lower at $43.43 -- though it may be getting ready to bounce, considering its 14-day Relative Strength Index (RSI) has dropped to 24, well into oversold territory. If Michael Kors Holdings Ltd can rebound, the stock is actually set to benefit from a round of bullish brokerage attention, as 12 of 17 analysts maintain tepid "hold" opinions.
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