Avocado Prices Earn Chipotle Mexican Grill Bearish Analyst Attention

MRVL stock is brushing off a pair of price-target cuts

Aug 25, 2017 at 9:40 AM
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Analysts are weighing in on retail stock Ulta Beauty Inc (NASDAQ:ULTA), burrito chain Chipotle Mexican Grill, Inc. (NYSE:CMG), and chip maker Marvell Technology Group Ltd. (NASDAQ:MRVL). Here's a quick roundup of today's bearish brokerage notes on shares of ULTA, CMG, and MRVL.

BMO Downgrades ULTA Stock After Earnings

Ulta Beauty shares are down 8.4% at $214.00, a new 15-month low, after the cosmetics retailer's same-store sales growth slowed last quarter and its current-quarter forecast came in below the consensus estimate -- overshadowing better-than-expected second-quarter earnings and revenue. In reaction, BMO downgraded ULTA to "market perform" from "outperform," and joined at least four other brokerage firms in lowering their respective price targets.

The stock has already been in a steady downtrend since its early June highs near $315, closing last night at $233.71, as short sellers have been ramping up the selling pressure. Since the April 1 report, short interest on Ulta stock has more than doubled to 2.68 million shares. 

CMG Stock Price Target Lowered at Credit Suisse

Citing rising avocado prices, Credit Suisse cut its price target on Chipotle Mexican Grill to $320 from $335 -- though this still sits at premium to the stock's current perch at $302.92. This comes as CMG shares stare at a nearly 20% year-to-date deficit, and hit a four-year low of $296 on Wednesday. There's still room for more analysts to lower their outlooks on the embattled stock, too. Despite its technical troubles, six brokerages maintain a "strong buy" rating, while the average 12-month price target is docked at a lofty $388.48.

Analysts Chime in on MRVL Stock After Earnings

Marvell Technology's second-quarter earnings beat drew mixed reactions from the brokerage bunch, with J.P. Morgan Securities and Jefferies lowering their respective price targets to $18 and $18.50. On the other hand, the stock earned price-target hikes from Craig-Hallum (to $21.50) and KeyBanc (to $23). This echoes the current set-up for the stock, with eight analysts maintaining a "buy" or better rating, versus seven "holds" and one "sell."

MRVL shares have surged 6% out of the gate, last seen trading at $16.90 -- extending a recent bounce off their 40-week moving average. Marvell Technology stock hasn't finished a week south of this trendline since July 2016, and is currently up roughly 31% year-over-year.


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