Dow Stock Drops on Deutsche Bank Downgrade

Analysts issued downgrades and price-target cuts on Ocular Therapeutix, Bed Bath & Beyond, and Caterpillar stocks

Jun 23, 2017 at 9:28 AM
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Analysts are weighing in on biopharmaceutical firm Ocular Therapeutix Inc (NASDAQ:OCUL), retail chain Bed Bath & Beyond Inc. (NASDAQ:BBBY), and construction equipment concern Caterpillar Inc. (NYSE:CAT). Here's a quick look at today's bearish brokerage notes on shares of OCUL, BBBY, and CAT.

OCUL Backs Down from Resistance on Morgan Stanley Downgrade

Morgan Stanley slashed its rating on OCUL to "equal weight" from "overweight," just one day after Ocular detailed its executive transition plan. OCUL stock is on track to open lower today, backing down from resistance at the $11.50 level -- which was taken out on a daily closing basis, at Thursday's close of $11.54, for the first time in over a year. Meanwhile, support from the security's 40-day moving average is rising through the round $10 level.

OCUL shares have been a favorite target of short sellers, with nearly 27% of the stock's float dedicated to short interest. This figure is down more than 18% from the last reporting period -- but with Ocular Therapeutix stock now backing down from solid chart resistance, shorts could grow bolder and once again ramp up their bets against the drug company.

Price-Target Cuts Pour In After BBBY Earnings

Following last night's bleak first-quarter earnings report, BBBY has been hit with price-target cuts from at least nine brokerage firms this morning. KeyBanc's downwardly revised target of $27 stands out as the lowest, implying expected downside of roughly 20% from Thursday's close at $33.74, while Barclays reduced its price forecast to a comparatively upbeat $40.

BBBY stock is off more than 10% in pre-market trading, on pace for a drop back toward its May 2010 "flash crash" lows. Given the security's steep downtrend below pressure at its 20-week moving average, it's not particularly surprising to find that not a single one of the 14 analysts tracking Bed Bath & Beyond calls it a "buy."

Deutsche Bank Rethinks Bullish CAT Rating

CAT was hit with a downgrade to "hold" from "buy" at Deutsche Bank, with the brokerage firm simultaneously reducing its price target to $106 from $121. That represents a modest 2% premium to the Dow component's Thursday close at $103.84. Caterpillar stock has slipped 1.1% ahead of the open, putting the shares at risk of a daily finish below their 40-day moving average for the first time in over two months.

At its highs north of $108 earlier this month, CAT had nearly doubled from its January 2016 low -- but most analysts are skeptical of the stock's ability to continue its impressive uptrend. Currently, 61% of brokerage firms rank Caterpillar a "hold" or "strong sell."

 

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