Starbucks, JetBlue, Whirlpool Downgraded

Analysts downwardly revised their ratings and price targets on coffee chain Starbucks Corporation (SBUX), airline JetBlue Airways Corporation (JBLU), and home appliance stock Whirlpool Corporation (WHR)

Jan 27, 2017 at 11:09 AM
facebook X logo linkedin


Analysts are weighing in on coffee chain Starbucks Corporation (NASDAQ:SBUX), airline JetBlue Airways Corporation (NASDAQ:JBLU), and home appliance stock Whirlpool Corporation (NYSE:WHR). Here's a quick roundup of today's bearish brokerage notes on SBUX, JBLU, and WHR.

Starbucks Sinks On Price-Target Cuts

SBUX is down 4.2% at $56.00, after the coffee company delivered disappointing quarterly sales last night and trimmed its full-year forecast, citing difficulties caused by the rapid expansion of its mobile ordering technology. In addition, Barclays, J.P. Morgan Securities, and Buckingham Research cut their price targets to $61, $58, and $54, respectively. The latter explained that it is "undeniable that business is slowing," and predicted "valuation contraction continuing." SBUX shares are now down 5.5% year-over-year, and are testing support at their 200-day moving average -- a trendline that acted as resistance on several occasions in 2016. Put players are likely cheering today's drop, with SBUX's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 2.00 sitting at an annual peak.

JetBlue Walloped by Weak Earnings Report

JBLU is down 4.1% at $20.25, after a mixed earnings report that included a weak forecast for its January passenger revenue per available seat mile (PRASM) ratio. The airline was also hit with a trio of price-target cuts from Deutsche Bank, Citigroup, and Imperial Capital, to $28, $21, and $29, respectively. JBLU is now down 12.5% from its 2017 peak. In the option pits, though, JBLU traders have been betting on upside, with its 50-day call/put volume ratio of 13.92 at the ISE, CBOE, and PHLX sitting higher than 94% of all other readings from the past year. An unwinding of these bullish bets could create significant headwinds for the airline stock.

Whirlpool Removed From "Americas Buy" List

WHR is down 1.5% at $171.30, after yesterday's mixed earnings report was met with bearish analyst attention. Specifically, Goldman Sachs removed the stock from its "Americas Buy" list, and also downgraded the shares to "neutral" from "buy," while cutting its price target to $187 from $191. The shares are still up more than 17% from their near-term bottom in late October, and roughly 30% year-over-year. Near-term traders have been unusually call-skewed toward the stock, with WHR's Schaeffer's put/call open interest ratio (SOIR) of 0.76 sitting just 1 percentage point from an annual low.

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