Analysts downwardly revised their ratings and price targets on EBAY, QCOM, and VRX stocks
Analysts are weighing in on online retailer eBay, chip stock QUALCOMM, Inc. (NASDAQ:QCOM), and drugmaker Valeant Pharmaceuticals Intl Inc (NYSE:VRX). Here's a quick roundup of today's bearish brokerage notes on EBAY stock, as well as shares of QCOM and VRX.
EBAY Stock Sinks on Outlook, Downgrade
EBAY is down 3% at $32.85, as a gloomy profit forecast overshadows an earnings beat. Reacting to the news, Monness Crespi Hardt downgraded the stock's rating to "neutral" from "buy," unlike RBC, which hiked its price target to $36 from $34 -- in record-high territory. Canaccord Genuity also increased its price target, to $32 from $31. In spite of today's losses, eBay stock remains 33% higher year-over-year. Options traders are probably hoping the shares can quickly recover from today's setback. During the past 50 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), EBAY stock has amassed a call/put volume ratio of 2.89 -- in the top quartile of its annual range.
QUALCOMM Earnings Panned by Wall Street
QCOM's earnings report was better than expected, but that didn't earn the firm much respect from analysts. While Stifel did lift its price target by $1 to $65, at least another four brokerage firms slashed their target prices. Plus, Canaccord Genuity said the company's ongoing legal woes with Apple Inc. (NASDAQ:AAPL) "remains a key issue impacting the share price." Out of the gate, QUALCOMM, Inc. shares are 0.7% higher at $52.97. Longer term, though, it's been a struggle for the stock, down sharply from its late-October high near $72. Perhaps that's why options traders have recently been targeting puts over calls. QCOM stock's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.78 sits just 17 percentage points from a 12-month peak.
Valeant Stock Stung by Price-Target Reduction
J.P. Morgan Securities slashed its price target on VRX stock to $10 from $15. The decision is well-deserved, considering the shares were down 73% year-over-year heading into today. Out of the gate, Valeant Pharmaceuticals Intl Inc has shed another 0.5% at $8.97. Speaking more broadly to VRX stock's sentiment backdrop, the brokerage crowd has expressed high levels of negativity -- with 80% of covering analysts dishing out a "hold" or "strong sell" recommendation.