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)

Oct 28, 2016 at 9:31 AM

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.

Find out where the Dow lands right after the closing bell. Sign up now for Schaeffer's Market Recap

Follow @Schaeffers

Are You Ready for AI's Potential Supercycle Phase?
Amazon's Jeff Bezos surprised investors when he revealed that one emerging technology is the key to Amazon's future success... This technology could be worth $80 trillion by 2030. Learn more and join Motley Fool's Stock Advisor for 50% off!

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.