Under Armour, Fitbit, Mobileye Downgraded

Analysts downwardly revised their ratings and price targets on UAA, FIT, and MBLY

Feb 1, 2017 at 9:49 AM
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Analysts are weighing in on apparel brand Under Armour Inc (NYSE:UAA), wearables specialist Fitbit Inc (NYSE:FIT), and auto tech stock Mobileye NV (NYSE:MBLY). Here's a quick roundup of today's bearish brokerage notes on UAA, FIT, and MBLY.

Under Armour Flooded by Bearish Brokerage Notes

Following yesterday's earnings bloodbath, UAA faces increased skepticism from analysts. Both FBR and Evercore ISI lowered their ratings to the equivalent of a "hold," and joined with at least 10 others in cutting their price targets. What's more, Citi said "it may take a few quarters for the stock to work again," while Raymond James noted that Under Armour Inc's "growth story is coming to an end." Out of the gate, the stock is trading down 1.4% at $21.18, nearing the three-year low of $20.80 it hit yesterday. Meanwhile, options traders are likely hoping for a steeper slide. UAA's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.47 ranks in the bearishly skewed 87th annual percentile.

Fitbit Receives Well-Deserved Price-Target Cut

FIT is off 1% at $5.96 -- not far from Monday's record low at $5.90 -- after SunTrust Robinson dropped its price target to $7 from $8. This negativity is more of the same from the brokerage community, which is hardly surprising given the stock's technical struggles. With Fitbit Inc down nearly 63% year-over-year, fifteen of 18 analysts rate the shares a "hold" or worse. Short sellers have also piled on the underperformer, with roughly two-fifths of the stock's float sold short, following a 22.7% jump in the most recent reporting period.

Mobileye Pressured by Downgrade

Morgan Stanley lowered its rating on MBLY to "equal weight" from "overweight," while also trimming its price target to $44 from $48. As a result, the stock has fallen 1.3% to trade at $42.39. In the last month, the shares have attempted to break out following a late-December low of $33.69, but seemingly lost momentum around the $45 level. If Mobileye NV doesn't turn things around quickly, more downgrades could ensue, as 15 of 19 analysts rate the stock a "buy" or better, with not a single "sell" opinion to be found.

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