Analyst Downgrades: Apple Inc., Baidu Inc, and American Express Company

Analysts downwardly revised their ratings and price targets on Apple Inc. (NASDAQ:AAPL), Baidu Inc (ADR) (NASDAQ:BIDU), and American Express Company (NYSE:AXP)

Karee Venema

Jul 21, 2016 at 10:00 AM

Analysts are weighing in on iPhone maker Apple Inc. (NASDAQ:AAPL), Chinese internet issue Baidu Inc (ADR) (NASDAQ:BIDU), and financial stock American Express Company (NYSE:AXP). Here's a quick roundup of today's bearish brokerage notes on AAPL, BIDU, and AXP.

Despite one analyst's prediction that Pokemon Go could add billions to AAPL's bottom line, BMO lowered its price target on the stock to $116 from $118. Still, AAPL hasn't traded north of $116 since mid-December, and was last seen at $100.19 -- down 20% on a year-over-year basis. Should the shares continue to struggle -- perhaps in the wake of another negative earnings reaction following next Tuesday night's results -- there's plenty of room for a fresh round of bearish brokerage notes to apply additional pressure. Currently, 84% of analysts maintain a "buy" or better rating on Apple Inc., while the average 12-month price target stands at a lofty $122.73.

Credit Suisse cut its price target on BIDU to $190 from $245. While the stock is up 0.7% at $161.78 this morning, it's longer-term trajectory has been decidedly lower. In fact, shares of BIDU have shed almost one-fifth of their value since hitting a year-to-date high of $201 in late April -- most recently due to a number of fundamental woes. On the sentiment front, short-term speculators are more put-heavy now toward BIDU than they've been at any other point over the past year. Specifically, the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.17 is docked above all other comparable readings taken in the past year. This put-skewed backdrop comes as Baidu Inc prepares to tell all in the earnings confessional after next Thursday's close.

AXP beat second-quarter earnings estimates, thanks to the sale of its Costco Wholesale Corporation (NASDAQ:COST) credit card portfolio. And while Bernstein raised its price target on AXP to $83 from $77, the stock received price-target cuts from J.P. Morgan Securities (to $65) and BMO (to $73). As such, the shares were last seen 2% lower at $63.19. Longer term, AXP is off 20% year-over-year -- and is facing stiff historical headwinds -- with recent rallies quickly halted by the stock's descending 200-day moving average. Against this backdrop, most analysts are skeptical of American Express Company, with 19 out of 23 maintaining a "hold" or worse rating on the stock.

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