Mellanox, Nordstrom, Shutterfly Downgraded

Analysts downwardly revised their ratings and price targets on MLNX, JWN, and SFLY

Feb 2, 2017 at 9:54 AM
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Analysts are weighing in on semiconductor stock Mellanox Technologies, Ltd. (NASDAQ:MLNX), department store Nordstrom, Inc. (NYSE:JWN), and digital retailer Shutterfly, Inc. (NASDAQ:SFLY). Here's a quick roundup of today's bearish brokerage notes on MLNX, JWN, and SFLY.

Earnings Miss Mauls Mellanox Shares

MLNX's disappointing turn in the earnings confessional prompted at least four analysts to cut their price targets -- including Jefferies, which lowered its target to $36 from $37, in annual-low territory. As a result, the stock has shed 10.3% at $41.98 -- largely wiping out its year-to-date gains -- and landed on the short-sale restricted (SSR) list. MLNX could be in danger of downgrades, too, considering nine analysts maintain "strong buy" endorsements, compared to just three "hold" and one "sell" rating.

Nordstrom Spirals Lower on Goldman Downgrade

JWN has dropped 2.7% to trade at $42.62, hit by a downgrade to "sell" from "neutral" at Goldman Sachs, which also slashed its price target by $12 to $35. This stands in stark contrast to a recent upgrade at Credit Suisse. Since hitting a mid-November peak of $62.82, the stock has lost close to one-third of its value. It's no wonder short sellers have been circling JWN. Nearly 22% of the equity's float is dedicated to short interest, which would take 7.5 sessions to cover, at typical trading levels.

Shutterfly Sinks on Guidance, Layoff Plans

SFLY is staring at an 17.3% loss this morning at $42.83, putting it on the SSR list. Pressuring the shares is a bad earnings report -- which included lackluster current-quarter guidance and a 13% workforce reduction -- as well as a round of downbeat brokerage attention. Specifically, Baird cut its rating to "neutral," and was one of at least six analysts to slash its price target. As it stands, SFLY is exploring territory not seen since late October. This is a welcome sight for short sellers, considering the stock's short-interest ratio (SIR) is a lofty 8.60.

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