Analysts downwardly revised their ratings and price targets on Netflix, Inc. (NFLX), Guess?, Inc. (GES), and Super Micro Computer, Inc. (SMCI)
Analysts are weighing in on streaming giant
Netflix, Inc. (NASDAQ:NFLX), retailer
Guess?, Inc. (NYSE:GES), and tech stock
Super Micro Computer, Inc. (NASDAQ:SMCI). Here's a quick roundup of today's bearish brokerage notes on NFLX, GES, and SMCI.
- NFLX's disappointing second-quarter subscriber numbers were hit with backlash from the brokerage bunch. Included in the fresh onslaught of price-target cuts was one from Canaccord Genuity to $115 from $120, even as the brokerage firm said "weakness in the stock represents a good long-term buying opportunity." Elsewhere, Jefferies lowered its price target to $76 from $80, saying the biggest impact from the "un-grandfathering" process is likely to be incurred in the current quarter. And while Wedbush raised its price target to $50 from $45, this still stands at a substantial discount to the stock's present price. In fact, against this bearish backdrop, shares of Netflix, Inc. have plunged 14% to $84.85 -- and found a place on the short-sale restricted list -- bringing their year-to-date deficit to 25%.
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Piper Jaffray downgraded GES to "underweight" from "neutral" and lowered its price target to $12 from $15. As such, shares of the retail stock are down 6.1% at $14.46. Longer term, the stock is off 36.2% year-over-year, and hit a seven-year low of $13.89 during the post-"Brexit" broad-market bloodbath. Not surprisingly, sentiment is tilted toward the skeptical side. Of the eight brokerages following Guess?, Inc., seven maintain a tepid "hold" rating. Meanwhile, a healthy 11.5% of the stock's float is sold short, or 6.8 times the average daily pace of trading.
- SMCI is down 28.6% at $18.81 -- and fresh off a two-year low of $18.75 -- after the company issued a dismal fiscal fourth-quarter forecast. Additionally, both D.A. Davidson and Stifel downgraded the stock's rating to the equivalent of a "hold," and the former joined at least two other brokerage firms in lowering their price targets on the shares. This isn't the first time the security has taken a dive on dreary guidance, and year-over-year, the shares of Super Micro Computer, Inc. are down 25%. In the options pits, meanwhile, short-term speculators have rarely been as put-skewed as they are now. Specifically, SMCI's Schaeffer's put/call open interest ratio (SOIR) of 1.18 rests just 2 percentage points from a 52-week peak.
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