Analyst Downgrades: Carnival Corp, VeriFone Systems Inc, and Lululemon Athletica inc.

Analysts downwardly revised their ratings and price targets on Carnival Corp (NYSE:CCL), VeriFone Systems Inc (NYSE:PAY), and Lululemon Athletica inc. (NASDAQ:LULU)

Sep 2, 2016 at 10:15 AM
facebook X logo linkedin

Analysts are weighing in on cruise ship operator Carnival Corp (NYSE:CCL), electronic payments specialist VeriFone Systems Inc (NYSE:PAY), and yoga apparel maker Lululemon Athletica inc. (NASDAQ:LULU). Here's a quick roundup of today's bearish brokerage notes on CCL, PAY, and LULU.

  • CCL is sinking this morning, dropping 49% at $46.33, after a downgrade to "underweight" from "equal weight" at Morgan Stanley, which also lowered its price target on the stock to $48 from $54. The brokerage firm noted a monthly survey that suggested weak demand for cruises in August -- a normally strong month. The losses bring Carnival Corp's year-to-date deficit to 15%, which is just fine with put traders. Specifically, CCL's 10-day put/call volume ratio of 3.20 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) comes in higher than four-fifths of all readings from the past year. 
  • PAY is in the midst of a second straight post-earnings sell-off, after the company released a disappointing full-year outlook. A series of bearish analyst attention has ensued, including downgrades to "neutral" at both Piper Jaffray and Wedbush. Goldman Sachs was one of 10 brokerages to weigh in with a price-target cut, setting its target at $21, and saying "the company's fundamentals may take some time to improve." VeriFone Systems Inc was last seen 18.7% lower at $16.33 -- after hitting a fresh three-year low of $16.07 earlier -- bringing its year-over-year drop to roughly 47%. More bearish notes could be forthcoming, too, since the majority of covering analysts held a "buy" or better rating on PAY as of yesterday's close. 
  • LULU is also getting crushed this morning -- which is good news for short sellers -- as a second-quarter earnings beat is overshadowed by weak same-store sales and a disappointing outlook. Cannacord Genuity chimed in with a price-target cut to $65 from $70, saying it sees "risk skewed to the downside," while Wedbush raised its price target to $84 from $82. Still, Lululemon Athletica inc. is on pace for its biggest percentage drop since last December, down 9% at $69.78. At the same time, the round $70 level -- which isn't far from the stock's average 12-month price target of $72.90 -- may be able to offer support for LULU. 
Find out where the Dow lands right after the closing bell. Sign up now for Schaeffer's Market Recap

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI