Analyst Downgrades: Fitbit Inc, Tripadvisor Inc, and L-3 Communications Holdings, Inc.

Analysts downwardly revised their ratings and price targets on Fitbit Inc (FIT), Tripadvisor Inc (TRIP), and L-3 Communications Holdings, Inc. (LLL)

Dec 8, 2016 at 10:00 AM
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Analysts are weighing in on fitness tracker specialist Fitbit Inc (NYSE:FIT), travel interest Tripadvisor Inc (NASDAQ:TRIP), and tech stock L-3 Communications Holdings, Inc. (NYSE:LLL). Here's a quick roundup of today's bearish brokerage notes on FIT, TRIP, and LLL.

  • FIT received a downgrade to "hold" from "buy" at Deutsche Bank, which also slashed its price target by 50%, to $9. The brokerage firm cited "slower growth in the wearables market and FIT's recent demand deceleration," adding, "We continue to view FIT as a leader in the wearable fitness category, but given consumer demand appears to be waning for wearable devices, we are taking a wait-and-see approach to the name." The stock is down 2.3% at $7.79 this morning, widening its year-to-date deficit to nearly 74%, and tapping a fresh record low of $7.76 earlier. Short sellers wouldn't mind to see more losses ahead, either. At present, roughly 41% of Fitbit Inc's total float is wrapped up in these pessimistic positions. 

  • CLSA has initiated coverage on a number of travel stocks, giving upbeat ratings to a couple of peers, but slapping TRIP with an "underperform" opinion, saying any benefits of the company's business transition are already priced in. The stock has been sliding down the charts since losing its foothold above the $60 level in early November, last seen trading at $47.68, and last Friday hit a three-year low of $45.95. Today's brokerage note is just more of the same for Tripadvisor Inc, however. Only one of the 17 analysts tracking the stock recommends buying the shares. 

  • BofA-Merrill Lynch cut its rating on LLL to "neutral" from "buy," sending the stock sliding 1.4% to $159.32 and paring its 2016 lead to 33.3%. Looking back, the shares hit a record high of $161.91 just yesterday, but with a 14-day Relative Strength Index (RSI) of 73, L-3 Communications Holdings, Inc. is technically overbought, suggesting a breather may have been due. It appears pessimism toward the stock may be growing elsewhere on Wall Street, as well. While short interest represents a low 2.1% of the security's total float, these bearish bets grew by 20.5% during the most recent two-week reporting period, even as the stock continued to climb. 
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