Analyst Downgrades: Lululemon Athletica inc., Nike Inc, and Under Armour Inc

Analysts downwardly revised their ratings and price targets on Lululemon Athletica inc. (LULU), Nike Inc (NKE), and Under Armour Inc (UA)

Oct 31, 2016 at 9:20 AM
facebook X logo linkedin


Analysts are weighing in on apparel stocks Lululemon Athletica inc. (NASDAQ:LULU)Nike Inc (NYSE:NKE), and Under Armour Inc (NYSE:UA). Here's a quick roundup of today's bearish brokerage notes on LULU, NKE, and UA.

  • Nomura slashed its target price on LULU to $65 from $75, even after the retail stock popped over 2% Friday to settle at $58.40. Since peaking in late August near $82, though, the shares have shed 28.6% of their value. As might be expected, short interest on Lululemon Athletica inc. is considerable. At present, 16.5% of the stock's float is sold short, and at LULU's average trading volume, it would take nearly seven sessions to cover these bearish bets.
  • NKE is down 2% pre-market, after BofA-Merrill Lynch downgraded its rating to "underperform," and cut its price target by $10 to $46 -- an 11.6% discount to Friday's settlement at $52.02. All in all, it's been a miserable year for Nike Inc shares, which have surrendered nearly 17% of their value and touched an annual low of $50.71 last week. Yet, options traders have struck a pretty bullish pose toward the stock, buying to open 1.64 NKE calls for every put during the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The corresponding call/put volume ratio outstrips nearly 70% of all others from the previous year.
  • Things just keep getting worse for UA, which is down 18.4% in the four sessions since the company reported earnings, at $30.94. Last week, in fact, the stock touched a two-year low of $30.63. Not surprisingly, analysts have been throwing in the towel on Under Armour Inc, and most recently, Nomura slashed its price target to $31 from $38. Additional bearish brokerage notes could be forthcoming, too, considering 12 analysts still maintain a "strong buy" rating on the underperformer.
Find out where the Dow lands right after the closing bell. Sign up now for Schaeffer's Market Recap
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI