Acacia Communications, Goldman Sachs, Gap Downgraded

Acacia Communications, Inc. (ACIA), Goldman Sachs Group Inc (GS), and Gap Inc (GPS) have received bearish analyst attention on Wall Street

Feb 24, 2017 at 9:59 AM
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Analysts are weighing in on networking expert Acacia Communications, Inc. (NASDAQ:ACIA), blue-chip bank Goldman Sachs Group Inc (NYSE:GS), and retail stock Gap Inc (NYSE:GPS). Here's a quick roundup of today's bearish brokerage notes on ACIA, GS, and GPS shares.

Acacia Communications Collapses on Outlook

ACIA has cratered 16.2% at $53.16, as the company's weak current-quarter forecast is overshadowing an earnings beat. Exacerbating the selling pressure are analysts, with Morgan Stanley, Goldman Sachs, Cowen, Deutsche Bank, and BofA-Merrill Lynch all slashing their price targets. Suffice it to say, it's been a rough road for the stock, since it topped out at a record high of $128.73 in early September. Downgrades could be just around the corner, as well. All seven analysts tracking ACIA shares have recommended buying them.

Berenberg Hits Goldman Sachs With a "Sell"

GS was slapped with a downgrade to "sell" from "hold" at Berenberg -- though the brokerage firm also lifted its price target to $190 from $140. At last check, the shares were down 1% at $248.80, but still not far from their record high touched earlier this week. As Goldman Sachs Group Inc has surged up the charts, short sellers have been hitting the exits. In the most recent reporting period, these bearish bets declined nearly 40%, leaving just 1.1% of the stock's float sold short.

Gap Shakes Off Post-Earnings Pessimism

GPS is up 3.6% at $24.84, after the company's fourth-quarter earnings matched estimates and sales exceeded expectations. While CEO Art Peck said he's particularly "bullish" on Gap Inc brand Athleta, he also warned of forex headwinds in 2017. Meanwhile, the brokerage bunch isn't impressed with the retailer's report, as Credit Suisse, Jefferies, and Wedbush each reduced their price targets. Longer term, it's been a struggle for GPS shares, which have encountered congestion in the $25 area since late 2016. As such, options traders have shown a strong propensity toward short-term puts over calls. Specifically, the stock's Schaeffer's put/call open interest ratio (SOIR) is a top-heavy 2.49, in the 88th percentile of its annual range.

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