Analyst Downgrades: United Technologies Corporation, Paypal Holdings Inc, and Viacom, Inc.

Analysts downwardly revised their ratings and price targets on United Technologies Corporation (NYSE:UTX), Paypal Holdings Inc (NASDAQ:PYPL), and Viacom, Inc. (NASDAQ:VIAB)

by Karee Venema

Published on Sep 19, 2016 at 10:02 AM

Analysts are weighing in on Dow stock United Technologies Corporation (NYSE:UTX), electronic payment processor Paypal Holdings Inc (NASDAQ:PYPL), and entertainment name Viacom, Inc. (NASDAQ:VIAB). Here's a quick roundup of today's bearish brokerage notes on UTX, PYPL, and VIAB.

  • UBS lowered its price target on UTX to $115 from $118, while Credit Suisse cut its price target to $109 from $111. Nevertheless, the stock is up 0.4% at $100.50, thanks to a bullish bias in the broader equities market. Longer term, shares of United Technologies Corporation are up 10% year-over-year. Options traders, meanwhile, have been buying to open puts over calls at a faster-than-usual clip in recent weeks. UTX's 10-day put/call volume ratio of 0.93 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 73rd annual percentile.
  • PYPL is down 1.4% at $40.15 -- testing its mettle atop the round $40 mark, a previous level of resistance that has more recently served as support. Sparking the negative price action is a downgrade to "hold" from "buy" at Canaccord Genuity, which also cut its price target to $40 from $45. Specifically, the brokerage firm said increased competition from Apple Inc. (NASDAQ:AAPL) and Android Pay could keep total payment volume (TPV) "growth on a path of gentle deceleration" -- a stark contrast to Craig-Hallum's recent take. Most analysts are split when it comes to the stock, which is up 11% year-to-date. Heading into the week, Paypal Holdings Inc had 16 "buy" or better ratings in its corner, compared to 10 "holds" and three "sell" or worse suggestions.
  • Stifel cut its outlook for VIAB to "hold" from "buy" and its price target to $38 from $49, sending the shares down 2.1% to trade at $36.21. More broadly speaking, VIAB has shed nearly 12% in 2016, with rally attempts repeatedly rejected near the $46 level. Should the shares of Viacom, Inc. continue to struggle, more negative analyst attention could be on the horizon. The stock's consensus 12-month price target of $46.38 stands at a 28% premium to current trading levels, leaving the door wide open for more price-target cuts to come down the pike.
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