Dan Loeb Dumps Snap Stock; Call Buyers Line Up for Spirit Airlines

Another analyst cut their price target on Snap stock

Aug 14, 2017 at 9:27 AM
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Analysts are weighing in on Snapchat parent Snap Inc (NYSE:SNAP), travel issue Spirit Airlines Incorporated (NASDAQ:SAVE), and fast-casual restaurant stock Zoe's Kitchen Inc (NYSE:ZOES). Here's a quick roundup of today's bearish brokerage notes on shares of SNAP, SAVE, and ZOES.

Third Point Dissolves SNAP Stake

Another disappointing earnings report sent Snap stock to record lows on Friday, and the shares could fall even lower today. Ahead of the open, SNAP is down 2%, following a price-target cut to $15 from $17 at Cantor Fitzgerald, and news that hedge fund Third Point has dissolved its stake in the company. 

While 17 brokerage firms rate Snap stock a "hold" or worse, there's still plenty of bullish sentiment from this group. Specifically, nine other analysts maintain "buy" or "strong buy" ratings, so there's still potential for more bearish attention to come the shares' way. SNAP closed last week at $11.83. 

Spirits Airlines Hit with Price-Target Cut

Shares of Spirit Airlines have shed more than one-third of their value in 2017 to trade at $38.25, due in large part to a post-earnings bear gap last month. Now, Barclays is slashing its price target on the stock to $50 from $67. Options traders, on the other hand, appear to be quite bullish on SAVE stock. That is, data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 10-day call/put volume ratio of 14.09 for Spirit Airlines, which ranks higher than 90% of readings from the past year. Said differently, call buying has been much more popular than normal, relative to put buying. 

Maxim Still Says 'Buy' Zoe's Kitchen Shares

Maxim Group this morning cut its price target on Zoe's Kitchen stock to $20 from $24, but kept its "buy" rating. Going back 12 months, the shares have lost more than two-thirds of their value, closing last week at $11.46, touching a record low of $10.77 back on Aug. 3. Short sellers have begun covering their positions amid this weakness. During the last two reporting periods alone, short interest on ZOES dropped by almost 19%. These bears still control roughly 25% of the stock's float, however. 

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