Analyst Downgrades: Time Warner Inc, Cintas Corporation, and Sun Life Financial Inc

Analysts downwardly revised their ratings and price targets on Time Warner Inc (TWX), Cintas Corporation (CTAS), and Sun Life Financial Inc (SLF)

Dec 23, 2016 at 9:29 AM
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Analysts are weighing in on media stock Time Warner Inc (NYSE:TWX), uniform specialist Cintas Corporation (NASDAQ:CTAS), and wealth management firm Sun Life Financial Inc (NYSE:SLF). Here's a quick roundup of today's bearish brokerage notes on TWX, CTAS, and SLF.

  • TWX was downgraded to "hold" from "buy" at Brean Capital this morning. At $96.46, Time Warner Inc is up more than 49% in 2016, and has been climbing steadily since late October, powered by a merger agreement. Regardless, near-term options traders have reached a put-heavy extreme in their approach to TWX. The stock's Schaeffer's put/call open interest ratio (SOIR) of 1.56 is seated at an annual high. 

  • CTAS is set to slide 2.6% at the open, after the company reported quarterly earnings that just missed estimates on the Street. RBC chimed in with a price-target cut to $115 from $118 -- a discount to last night's close of $120.09. Cintas Corporation has been a strong performer this year, tacking on 50% since its January low, and hitting a record high of $122.21 last week. Still, the shares could be due for a breather, considering their 14-day Relative Strength Index (RSI) of 68 is verging on overbought territory.

  • SLF received a downgrade to "hold" from "buy" at Argus, which cited concerns over the firm's core business, tightening margins, and a stronger Canadian dollar. At $38.65, Sun Life Financial Inc isn't far off its late-November eight-year high of $39.87. The shares have spent the past month atop a strong foothold in the $38-$38.50 region, which also corresponds with their 2014 highs. And short-term traders have largely held out high hopes, based on SLF's SOIR of 0.16 -- just 2 percentage points from a 12-month low.
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