Another 'Sell' Rating for Snap Stock, While Analysts Cut Outlooks on Disney

The 320-day moving average has pressured DIS shares

Josh Selway
Aug 16, 2017 at 9:15 AM
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Analysts are weighing in on ESPN parent Walt Disney Co (NYSE:DIS), drug stock Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA), and Snapchat parent Snap Inc (NYSE:SNAP). Here's a quick roundup of today's bearish brokerage notes on shares of DIS, TEVA, and SNAP.

2 Brokerages Drop their Price Targets on Disney Shares

Deutsche Bank and Citigroup lowered their respective price targets on Disney stock to $115 and $121, but both of these are well above the shares' Tuesday settlement at $101.51. Since the blue chip's post-earnings bear gap, the 320-day moving average has acted as overhead resistance, though DIS remains up 4.5% on a year-over-year basis. Still, the equity will need to recover quickly to avoid additional bearish notes from analysts. For instance, Disney's average 12-month price target stands up at $114.27, representing a 12.6% premium to current levels. 

Teva Needs Partnerships to Fund Drug Projects

Teva stock has been plagued by negativity for more than two years now. Over the past 52 weeks, the shares have given back two-thirds of their value, touching a nearly 15-year low of $16.81 on Aug. 11, before closing yesterday at $17.97. Adding insult to injury, the company just announced it'll be looking for partnerships to help fund future projects, news that was met with a downgrade to "neutral" from "buy" at Citigroup, which also dropped its price target to $19 from $32. 

All the while, short sellers continue to pile on TEVA, as short interest has been skyrocketing this year. In the last two reporting periods alone, short interest jumped 21%, and is now at the highest point on record. Going by average daily volumes, it would take almost two weeks for these bears to cover their positions. 

SunTrust Robinson Says 'Sell' Snap Stock

As Snap stock continues to trade near record lows, it's become a regular on our downgrades list. Just this morning, SunTrust Robinson initiated coverage with a "sell" rating and $10 price target. SNAP shares just hit an all-time low of $11.28 on Aug. 14, compared to their March 3 peak of $29.44, and closed yesterday at $12.74.  As it stands now, 18 of 26 brokerage firms rate the social media issue a "hold" or "strong sell." Moreover, the equity has a consensus 12-month price target of $15.09. 

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