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2 Apple Suppliers Slammed By Downgrades

Amazon received price-target cut from Deutsche Bank

Jul 18, 2017 at 10:53 AM
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Analysts are weighing in on Apple suppliers Advanced Micro Devices, Inc. (NASDAQ:AMD), and Cirrus Logic, Inc. (NASDAQ:CRUS), as well as online retailer Amazon.com, Inc. (NASDAQ:AMZN). Here's a quick roundup of today's bearish brokerage notes on shares of AMD, CRUS, and AMZN.

AMD Downgraded by Barclays

Barclays downgraded AMD stock to "underweight" from "equal weight," and maintained a price target of $9 -- a discount of nearly 35% to AMD's $13.80 close on Monday. AMD stock was last seen at $13.32, down 3.5%, and has encountered a ceiling at $14.50 in 2017.

Ahead of earnings next Tuesday, options traders have been liquidating AMD calls and buying to open puts at a rapid-fire rate. AMD's International Securities Exchange (ISE) 10-day put/call volume ratio of 2.71 sits in the 93rd percentile of all other ratios in the past 12 months.

Cirrus Logic Stock Testing Support

Barclays also cut Cirrus Logic stock to "underweight" from "equal weight," pulling the shares down 6.6% to $60.98. CRUS stock reached an all-time-high of $71.96 on June 9, but has since shed more than 15% to test its 160-day moving average. Additional downgrades could ensue, should Cirrus shares extend their recent trek lower. Currently, almost 80% of analysts offer up "buy" or better ratings on CRUS.

Deutsche Bank Cuts AMZN Price Target 

Deutsche Bank cut its price target on AMZN stock to $1,135 from $1,150 citing concerns about relatively weak cloud checks. However, the analyst reiterated their "buy" rating on Amazon stock, which yesterday muscled higher on reports the company is entering the meal-delivery business.

AMZN shares are shrugging off the negative analyst attention, up 0.3% at $1,013.16. An unwinding of pessimism in the options pits could help Amazon stock even higher, as its Schaeffer's put/call open interest ratio (SOIR) of 1.17 sits 75% higher than all other ratios in the past year.

 

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