Analyst Downgrades: Apple Inc., Box Inc, and Costco Wholesale Corporation

Analysts downwardly revised their ratings and price targets on Apple Inc. (AAPL), Box Inc (BOX), and Costco Wholesale Corporation (COST)

Jun 2, 2016 at 9:28 AM
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Analysts are weighing in on iPhone parent Apple Inc. (NASDAQ:AAPL), content collaboration specialist Box Inc (NYSE:BOX), and retail stock Costco Wholesale Corporation (NASDAQ:COST). Here's a quick roundup of today's bearish brokerage notes on AAPL, BOX, and COST.

  • AAPL is pointed 0.7% lower pre-market, after Goldman Sachs cut its price target on the stock to $124 from $136. In addition, the brokerage firm lowered its full-year earnings estimates and iPhone sales forecast, citing lower growth expectations industrywide. On the charts, Apple Inc. has been battling back from its May 12 annual low of $89.47 to trade at $98.46, but was stonewalled around the $100 century level -- and continues to face pressure from its descending 40-day moving average. Further losses could trigger additional bearish brokerage attention, considering 24 of 29 analysts maintain "buy" or better opinions on AAPL.

  • Despite last night's narrower-than-expected first-quarter loss, BOX received a downgrade to "neutral" from "overweight" at J.P. Morgan Securities -- which also slashed its price target to $14 from $18. On top of that, Canaccord Genuity lowered its target price to $16 from $18, though the firms' analysts added they're "buyers on the dip." As such, Box Inc -- which settled last night at $12.81 -- is bracing for a 7.3% plunge at the open. This ought to lift of the spirits of short sellers. Over one-quarter of the stock's float is sold short, representing more than four weeks' worth of trading, at BOX's usual daily volumes.

  • Unlike yesterday, when COST won support from Wall Street, the stock is being met with skepticism this morning. Specifically, Sterne Agee CRT trimmed its price target to $176 from $179, after the big-box retailer reported flat same-store sales. "Memorial Day cushioned blow from modestly softer traffic trends in May, but core comparable sales was below our estimate nonetheless," the brokerage firm wrote in a note to clients. Ahead of the open, Costco Wholesale Corporation shares are down 1.1%, following Wednesday's settlement at $152.52. Meanwhile, across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have been buying to open puts over calls at a breakneck rate. COST's 10-day put/call volume ratio of 1.73 ranks in the 94th annual percentile.
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