Analyst Downgrades: Vipshop Holdings Ltd, Tiffany & Co., and Western Digital Corp

Analysts downwardly revised their ratings and price targets on Vipshop Holdings Ltd - ADR (NYSE:VIPS), Tiffany & Co. (NYSE:TIF), and Western Digital Corp (NASDAQ:WDC)

by Karee Venema

Published on May 18, 2016 at 10:04 AM
Updated on May 18, 2016 at 10:04 AM

Analysts are weighing in on retail stocks Vipshop Holdings Ltd - ADR (NYSE:VIPS) and Tiffany & Co. (NYSE:TIF), as well as data storage specialist Western Digital Corp (NASDAQ:WDC). Here's a quick roundup on today's bearish brokerage notes on VIPS, TIF, and WDC.

  • VIPS was hit with a slew of negative analyst attention, after the retailer offered up lower-than-forecast first-quarter sales and dismal current-quarter revenue guidance. Specifically, J.P. Morgan Securities downgraded the stock to "neutral," while VIPS also received price-target cuts from Deutsche Bank (to $16.70), Nomura (to $17), and Stifel (to $18). As such, the shares have plunged 11.9% to $10.85 -- trading at their lowest levels since mid-February. While Vipshop Holdings Ltd has found itself on the short-sale restricted list today, short sellers have been upping the bearish ante on VIPS of late. In the two most recent reporting periods, short interest jumped 15%, and now accounts for a healthy 6.6% of the stock's available float.

  • TIF just can't catch a break, and since last week's executive shake-up, the shares have lost 3%. This includes today's 0.7% drop at $64.41, which comes on the heels of a price-target cut to $68 at Cowen and Company. Longer term, the shares of TIF have dropped 25.5% over the past 52 weeks. Nevertheless, the majority of analysts maintain a "strong buy" on the underperformer, while the average 12-month price target of $81.29 stands at a 26% premium to current trading levels. Should Tiffany & Co. continue to struggle, another round of negative analysts notes could apply additional pressure.

  • Mizuho cut its price target on WDC to $40 from $47, but the stock is brushing off the bearish brokerage note. In fact, WDC was last seen up 4% at $38.22 -- trying to notch its first close north of its 10-day moving average since taking an earnings-induced stumble in late April. More broadly speaking, the stock has been a long-term laggard, shedding 60% over the last 12 months. Options traders have been lining up on the bearish side of the fence, too. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Western Digital Corp's 10-day put/call volume ratio of 1.54 ranks in the 80th percentile of its annual range.
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