Analyst Downgrades: Bed Bath & Beyond Inc., Viacom, Inc., and CBS Corporation

Analysts downwardly revised their ratings and price targets on Bed Bath & Beyond Inc. (NASDAQ:BBBY), Viacom, Inc. (NASDAQ:VIAB), and CBS Corporation (NYSE:CBS)

Sep 22, 2016 at 9:52 AM
facebook twitter linkedin


Analysts are weighing in on retail stock Bed Bath & Beyond Inc. (NASDAQ:BBBY), as well as entertainment names Viacom, Inc. (NASDAQ:VIAB) and CBS Corporation (NYSE:CBS). Here's a quick roundup of today's bearish brokerage notes on BBBY, VIAB, and CBS.

  • BBBY's second-quarter earnings miss was met with backlash from the brokerage bunch. No fewer than five analysts lowered their price targets on BBBY, including BofA-Merrill Lynch, which cut its target price by $1 to $36. It's been a rocky year for the stock, which has shed nearly 27% in the past 52 weeks, but added 2% this morning to trade at $43.96. Options traders, it seems, were bracing for even more post-earnings losses, too. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Bed Bath & Beyond Inc.'s 10-day put/call volume ratio of 1.08 ranks in the 69th annual percentile, meaning puts have been bought to open over calls at a faster-than-usual clip.
  • VIAB has been in analysts' crosshairs of late, and most recently, the stock was hit with no fewer than five price-target cuts. BMO set the lowest bar, cutting its price target to $35 from $40. This latest round of negative analyst attention comes in the wake of Wednesday's C-suite shake-up, with Viacom, Inc. announcing the departure of interim CEO Thomas Dooley. Even so, VIAB is up 0.5% at $36.02, paring its year-over-year deficit to 12.5%. Most analysts are already lukewarm on the stock, with the majority maintaining a tepid "hold" recommendation. However, 13 brokerages still maintain a "buy" or better rating on VIAB, meaning futures downgrades are a distinct possibility.
  • Telsey Advisory Group downgraded CBS to "market perform" from "outperform" and lowered its price target to $57 from $67, saying it believes the chances are high that CBS Corporation will combine with VIAB. Nevertheless, shares of CBS up 0.1% at $50.11, after finding a familiar foothold atop the round $50 mark. Longer term, CBS has turned in a solid performance, tacking on 20% over the past 12 months. On the sentiment front, short-term options traders are more put-heavy than usual. CBS' Schaeffer's put/call open interest ratio (SOIR) of 0.97 ranks higher than 87% of all comparable readings taken in the past year.
Find out where the Dow lands right after the closing bell. Sign up now for Schaeffer's Market Recap

What This Election Year Means for Stocks

Ipad with I voted sticker

  


 
Special Offers from Schaeffer's Trading Partners