Analyst Downgrades: Netflix, Inc., Guess?, Inc., and Super Micro Computer, Inc.

Analysts downwardly revised their ratings and price targets on Netflix, Inc. (NASDAQ:NFLX), Guess?, Inc. (NYSE:GES), and Super Micro Computer, Inc. (NASDAQ:SMCI)

by Karee Venema

Published on Jul 19, 2016 at 10:08 AM
Updated on Jul 19, 2016 at 10:08 AM

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%.

  • 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.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


3 Million to Lose Jobs – and Not Because of Coronavirus?
A terrifying new trend can make you a millionaire or destroy your financial future.
Wall Street Reclaims Two Key Trendlines This Week
U.S.-China tensions and dire economic data still weigh, though
Dell Stock Jumps on Upbeat First Quarter
DELL announced an upbeat first-quarter report
Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.