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Analyst Downgrades: Community Health Systems, Infinera Corp., and Walt Disney Co

Analysts downwardly revised their ratings and price targets on Community Health Systems (CYH), Infinera Corp. (INFN), and Walt Disney Co (DIS)

Oct 27, 2016 at 9:47 AM
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Analysts are weighing in on hospital operator Community Health Systems (NYSE:CYH), networking concern Infinera Corp. (NASDAQ:INFN), and Dow stock Walt Disney Co (NYSE:DIS). Here's a quick roundup of today's bearish brokerage notes on CYH, INFN, and DIS.

  • CYH is down more than 40% at $6.05, and fresh off an all-time low of $5.86, after the company delivered lackluster preliminary third-quarter results. Analysts are piling on the bearish bandwagon, too, with downbeat notes from Credit Suisse, Mizuho, Baird, and Jefferies -- with the latter citing the firm's "deterioration in fundamentals." Not everyone's going to be disappointed with Community Health Systems' technical trials. During the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), bears have dominated, with traders buying to open six times as many puts as calls. The corresponding put/call volume ratio rests just 4 percentage points from an annual peak. Looking ahead, CYH will actually report earnings after the close next Tuesday.
  • Despite the company reporting better-than-expected adjusted earnings, INFN is in the bearish crosshairs. Specifically, no fewer than six analysts have reduced their price targets on the stock, with Citigroup setting the lowest mark, at $7. Out of the gate, Infinera Corp. has slid 10.9% to trade at $8.22, touching a two-year low of $7.92 in the process. Option bears should be cheering the stock's demise, based on data at the ISE, CBOE, and PHLX. Specifically, INFN has racked up a 10-day put/call volume ratio of 2.30, outstripping 97% of comparable readings taken in the previous 12 months.
  • DIS is up 0.3% at $93.80, despite a price-target cut to $125 from $128 at Credit Suisse. Longer term, though, things haven't been pretty. On a year-to-date basis, Walt Disney Co has given back nearly 11%, versus the Dow's 2016 advance of almost 5%. Therefore, it should come as no surprise that most of the brokerage crowd is already firmly planted in the stock's bearish camp. Specifically, 14 of 23 analysts rate DIS a "hold" or a "strong sell." Meanwhile, on the fundamental front, the media giant is reportedly still in the running to buy Twitter Inc (NYSE:TWTR).
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