Analyst Downgrades: Amazon.com, Inc., McKesson Corporation, and Nokia Corp

Analysts downwardly revised their ratings and price targets on Amazon.com, Inc. (AMZN), McKesson Corporation (MCK), and Nokia Corp (ADR) (NOK)

Alex Eppstein
Oct 28, 2016 at 9:31 AM
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Analysts are weighing in on e-tailer Amazon.com, Inc. (NASDAQ:AMZN), drug distributor McKesson Corporation (NYSE:MCK), and telecom stock Nokia Corp (ADR) (NYSE:NOK). Here's a quick roundup of today's bearish brokerage notes on AMZN, MCK, and NOK.

  • AMZN is down 5.2% at $775.05, after the internet retailer missed on quarterly earnings amid rising costs, and offered lackluster current-quarter guidance. The response on Wall Street has been mixed, with Deutsche Bank, Goldman Sachs, and RBC cutting their price targets, but Canaccord Genuity and Susquehanna raising their outlooks to $900 and $1,250, respectively -- both in record-high territory. Even after accounting for this morning's bearish gap, Amazon.com, Inc. remains nearly 15% higher year-to-date, explaining why most analysts have taken a glass-half-full approach toward the shares. Specifically, 28 of 31 brokerage firms rate the stock a "buy" or better.
  • MCK slipped up in the earnings confessional, and slashed its full-year forecast. In response, at least five brokerage firms weighed in bearishly, including Deutsche Bank -- which lowered its rating to "hold" and its price target to $153. Moreover, Deutsche Bank said, "MCK's comments about sell-side margin pressure and price competition will likely spook already skittish drug supply chain investors." In early trading, McKesson Corporation has slid 19.8% to trade at $128.71 -- in three-year-low territory -- and has landed on the short-sale restricted list. Option bears should be thrilled. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), MCK has racked up a 10-day put/call volume ratio of 2.58 -- just 15 percentage points from a 12-month peak.
  • NOK is down sharply for a second straight day, slipping 3.6% to trade at $4.56 -- a three-year low. Bearish analyst notes are pressuring the shares, just a day after Nokia Corp reported a steep drop in quarterly earnings and sales. Danske Bank lowered its opinion to "hold," while at least 11 other analysts trimmed their price targets. Today's price action is a boon to the many bearish options bettors seen at the ISE, CBOE, and PHLX of late. Specifically, NOK's 10-day put/call volume ratio across those exchanges is 1.99, outstripping 90% of comparable readings from the past year.
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