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Analyst Downgrades: NetApp Inc., SunPower Corporation, and Fitbit Inc

Analysts downwardly revised their ratings and price targets on NetApp Inc. (NTAP), SunPower Corporation (SPWR), and Fitbit Inc (FIT)

Feb 18, 2016 at 10:08 AM
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Analysts are weighing in on data storage concern NetApp Inc. (NASDAQ:NTAP), solar power issue SunPower Corporation (NASDAQ:SPWR), and wearable fitness guru Fitbit Inc (NYSE:FIT). Here's a quick roundup of today's bearish brokerage notes on NTAP, SPWR, and FIT.

  • NTAP is up 2.1% at $24.04, although the firm reported lower-than-expected fiscal third-quarter sales and announced plans to cut roughly 12% of its workforce. Analysts at Baird downgraded NetApp Inc. to "neutral," as a result, and no fewer than 10 brokerage firms slashed their price targets on the equity. Most analysts were already in the bears' corner, with just four out of 26 offering up a "buy" or better opinion. The stock has shed 36.5% over the past year, and has underperformed the broader S&P 500 Index (SPX) by about 18 percentage points in the last three months.
  • SPWR is down 3.9% at $23.37, despite the firm's stronger-than-expected fourth-quarter earnings. Meanwhile, Goldman Sachs, Deutsche Bank, and Cowen and Company subsequently cut their price targets on SPWR (though already-bullish Janney upped its fair value to $30). It looks like option buyers were hoping for a negative earnings reaction for SunPower Corporation. The stock's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 1.12 is higher than 76% of all other readings from the past year.
  • FIT is shrugging off negative analyst attention this morning, after Pacific Crest sliced its price target to $31 from $47. FIT is up 0.6% at $15.98, with the shares -- not unlike the major market indexes -- on pace for a fourth straight day of gains. Longer term, the security has shed nearly half its value since the start of the year, under pressure from its 20-day moving average. Meanwhile, Fitbit Inc's Schaeffer's put/call open interest ratio (SOIR) of 0.46 indicates call open interest more than doubles put open interest among options expiring in three months or less.
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