Aecom, Arista Networks, Costco Downgraded

Aecom, Arista Networks, and Costco stocks received bearish analyst attention

Apr 7, 2017 at 9:39 AM
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Analysts are weighing in on infrastructure issue Aecom (NYSE:ACM), cloud concern Arista Networks Inc (NYSE:ANET), and retail stock Costco Wholesale. Here's a quick roundup of today's bearish brokerage notes on shares of ACM and ANET, as well as COST stock.

Aecom Stock Stumbles on Downgrade

ACM was downgraded to "neutral" from "outperform" at Baird, which also slashed its price target to $40 from $45. This follows a fourth amendment to Aecom's credit agreement, per an SEC filing. It's not been a pleasant 2017 for the stock, off 6.7% today at $33.02, and down more than 9% year-to-date. Not surprisingly, short interest has been on the rise. During the most recent reporting period, these bearish bets swelled over 23%, and at ACM's average daily trading rate, it would take a week to cover all its shorted shares. More short selling could continue to be a drag on the underperforming stock.

Arista Networks Consolidates Gains After Record High

Instinet lowered its opinion on ANET to "neutral" from "buy." As such, the shares have slipped 0.9% to trade at $133.10, but remain within striking distance of yesterday's all-time high of $135.27. Meanwhile, options traders have taken an extremely bullish stance toward Arista Networks Inc. The stock's 50-day call/put volume ratio is 1.51 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio outstrips 99% of comparable readings taken in the past year.

COST Stock Receives Mixed Analyst Attention

Despite gapping higher yesterday on better-than-expected March same-store sales, COST stock was the victim of negative analyst attention overnight. Specifically, Goldman Sachs trimmed its price target to $190 from $193 -- though BMO upped its target to $195, as well. It's worth noting that both targets represent uncharted territory for Costco stock, which hit a record high of $178.71 on March 1. Right now, the shares are down0.2% at $169.73, paring their year-over-year lead to 12%. The brokerage crowd has taken a glass-half-full approach toward COST stock, with more than two-thirds doling out "buy" or better recommendations, and not a single "sell" opinion on the books.


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