Analyst Downgrades: Viacom, Inc., Yamana Gold Inc., and VeriFone Systems Inc

Analysts downwardly revised their ratings and price targets on Viacom, Inc. (VIAB), Yamana Gold Inc. (USA) (AUY), and VeriFone Systems Inc (PAY)

Dec 13, 2016 at 9:58 AM
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Analysts are weighing in on entertainment interest Viacom, Inc. (NASDAQ:VIAB), gold stock Yamana Gold Inc. (USA) (NYSE:AUY), and payment processor VeriFone Systems Inc (NYSE:PAY). Here's a quick roundup of today's bearish brokerage notes on VIAB, AUY, and PAY.

  • VIAB received downgrades to "neutral" from "outperform" at Wedbush, and to "underperform" from "sector perform" at RBC, sending the shares sliding 1.5% to $34.26. The two brokerage firms also lowered their price targets on the stock, to $39 and $30, respectively. Meanwhile, traders are still responding to yesterday's news that Shari Redstone, vice chair of both Viacom, Inc. and CBS Corporation (NYSE:CBS), has withdrawn a proposal to merge the two companies. Acting CEO Bob Bakish was also officially appointed as president, CEO, and board member. VIAB has given up nearly 17% of its value so far this year, and could be in more trouble after giving up support at the $35-$36 area, which acted as support since September. 

  • AUY is lower after a price-target cut to $5.10 from $7.10 at HSBC, with the shares down 1% at $2.94. While the stock is up 58% in 2016, it has cooled significantly since peaking at $5.99 in July. Short sellers have been piling on in recent weeks, too. These pessimistic positions surged by about 43% during the two most recent reporting periods. But with just 1.5% of the stock's available float sold short, there is still plenty of room for bears to put further selling pressure on Yamana Gold Inc. 

  • PAY is rallying 8.5% to trade at $17.84, after the company reported quarterly earnings that beat expectations, overshadowing a disappointing current-quarter outlook. So far no fewer than five brokerage firms have lowered their price targets on the stock, including Compass Point, which cut its target to $16 from $17.50. Meanwhile, Craig Hallum diverged from the pack, raising its price target to $22 from 20. VeriFone Systems Inc has had a rough year so far, dropping 36%. As such, today's post-earnings boost may catching bearish options traders by surprise.
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