AAPL, PRGO, SNAP Stocks Downgraded Today

SNAP shares could fall below their 20-day moving average today

Jun 5, 2017 at 9:30 AM
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Analysts are weighing in on tech giant Apple Inc. (NASDAQ:AAPL), drug stock Perrigo Company plc Ordinary Shares (NYSE:PRGO), and Snapchat parent Snap Inc (NYSE:SNAP). Here's a quick roundup of today's bearish brokerage notes on shares of AAPL, PRGO, and SNAP.

AAPL Stock Downgraded Ahead of WWDC

Apple stock is down 0.8% in electronic trading, following an AAPL downgrade to "sector weight" from "overweight" at Pacific Crest. The firm said traders are expecting strong results from the iPhone 8 cycle, without considering risks related to "gross margins, elasticity, supply issues, or the likelihood for declines beyond the iPhone 8 cycle." The brokerage firm also said big-cap traders should sell positions in Apple to buy shares of Alphabet, which closed last week at $996.12. AAPL shares have been consolidating since hitting a record high of $156.65 on May 15, settling Friday at $155.45. 

Even without the analyst note, Apple would have been in the spotlight today, given its Worldwide Developers Conference (WWDC). The company is expected to reveal a number of new products at the event, including a smart speaker to challenge Amazon's Echo. Looking back, AAPL stock has already been prone to making bigger moves than options traders were expecting over the past year. This is evidenced by its Schaeffer's Volatility Scorecard (SVS) of 99. 

PRGO Stock Under Pressure After RBC Note

Shares of Perrigo are down 3.4% before the open, after RBC lowered its rating to "underperform" from "sector perform," and cut its price target to $60 from $66. PRGO stock closed Friday at $73.44, down 26% year-over-year. With the company scheduled to attend the Jefferies' Healthcare Conference tomorrow, it could be a good time to buy Perrigo Company options. For example, the equity's Schaeffer's Volatility Index (SVI) of 31% is just 8 percentage points from an annual low, hinting at lower-than-usual volatility expectations for near-term options. 

SNAP Stock Price Target Reduced 

J.P. Morgan Securities is the latest brokerage to weigh in on Snap stock, trimming its price target to $18 from $20 -- near the sight of the stock's May 11 earnings-induced bear gap , which sent SNAP tumbling to a record low of $17.59. Most analysts are already cautious on SNAP stock. By the numbers, 11 say the equity is a "buy," while 15 others say it's a "hold" or "strong sell." Snap had been finding support from its 20-day moving average in recent sessions, settling Friday at $21.09, but a breach of this trendline looks imminent, with SNAP shares pointed 2.7% lower this morning. 

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