Analysts downwardly revised their ratings and price targets on International Business Machines Corp. (IBM), Advanced Micro Devices, Inc. (AMD), and FireEye Inc (FEYE)
Analysts are weighing in on tech firm
International Business Machines Corp. (NYSE:IBM), chipmaker
Advanced Micro Devices, Inc. (NASDAQ:AMD), and cybersecurity stock
FireEye Inc (NASDAQ:FEYE). Here's a quick roundup of today's bearish brokerage notes on IBM, AMD, and FEYE.
- IBM is off 5.3% this morning at $121.37 -- after hitting a five-year low of $118 -- after the company reported disappointing fourth-quarter revenues and weak full-year guidance. What's more, no fewer than 10 brokerage firms lowered their price targets on the stock. Included in the bunch was Credit Suisse, which lowered its target to $110 from $125 -- territory not seen since July 2009. On the charts, International Business Machines Corp. is on the verge of closing below its 200-month moving average for the first time in at least 19 years. It's no surprise, then, that 10 of 16 covering analysts say IBM is a "hold" or worse.
- Pre-earnings bulls are licking their wounds this morning, as AMD has dropped 1.5% at $1.92, after the company announced lackluster quarterly results. Since surging to a nine-month high of $3.06 on Dec. 29, the stock has dropped 37%, and more analysts are making their skepticism clear. That is, Exane BNP Paribas and Raymond James lowered their respective price targets to $1.60 and $3 this morning. More price-target cuts could be in store for Advanced Micro Devices, Inc., as its average 12-month price target of $2.31 represents a 20.3% premium to current levels.
- Wunderlich lowered its price target on FEYE to $21 from $32, and now the shares are off 9.9% at $13.72, after earlier touching an all-time low of $13.61. The stock has trailed the S&P 500 Index (SPX) by an eye-popping 39 percentage points over the previous three months, and more losses could be ahead if option traders unwind their seemingly bullish positions. Specifically, FireEye Inc's Schaeffer's put/call open interest ratio (SOIR) comes in at 0.29 -- an annual low. In short, near-term option traders are more call-skewed than at any point in the previous 12 months.
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