Analyst Downgrades: Bed Bath & Beyond Inc., Infinity Pharmaceuticals Inc., and GoPro Inc

Analysts downwardly revised their ratings and price targets on Bed Bath & Beyond Inc. (BBBY), Infinity Pharmaceuticals Inc. (INFI), and GoPro Inc (GPRO)

Jun 15, 2016 at 11:03 AM
facebook twitter linkedin


Analysts are weighing in on home goods retailer Bed Bath & Beyond Inc. (NASDAQ:BBBY), biotech Infinity Pharmaceuticals Inc. (NASDAQ:INFI), and tech stock GoPro Inc (NASDAQ:GPRO). Here's a quick roundup of today's bearish brokerage notes on BBBY, INFI, and GPRO.

  • BBBY is up 3.4% at $44.14, after announcing it has acquired One Kings Lane Inc., an online home furnishings retailer, for an undisclosed amount. The excitement over BBBY's newest purchase -- as well as a broader rally among retail stocks -- is overshadowing a price-target cut to $47 from $52 at UBS. Nevertheless, the stock is down nearly 37% year-over-year, and hit a five-year low of $41.26 in early February. Other analysts also seem pessimistic towards Bed Bath & Beyond Inc., with only one of 15 brokerages rating BBBY a "buy" or better. 
  • INFI is up 5.8% to $1.44, after yesterday's disastrous crash. Today's bounce comes despite a barrage of negative analyst attention, with Morgan Stanley, Jefferies, Wells Fargo, and William Blair all downgrading the stock to the equivalent of a "hold" rating. Additionally, the former two lowered their respective price targets to $1 and $1.25. However, considering Infinity Pharmaceuticals Inc. was down 81% year-to-date heading into today's session, the stock's 14-day Relative Strength Index (RSI) closed last night at 15 -- well into oversold territory. In other words, a short-term bounce may have been in the cards.
  • GPRO is trading up 4.2% at $10.124, after Longbow initiated coverage of the stock with a "neutral rating," saying the company is operating in a saturated market and that "GoPro will have a difficult time expanding to mainstream consumers that do not participate in action sports." Despite today's pop, GPRO stock remains a long-term laggard, down almost 83% year-over-year -- and fresh off a May 19 record low of $8.62. While call buying has been popular in the GPRO options pits of late, short interest on GoPro Inc shot 20% higher in the last two reporting periods. These bearish bets now account for 32% of GPRO's float. 
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!
 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

 


 


 
Special Offers from Schaeffer's Trading Partners