Schaeffer's Top Stock Picks for '25

Analyst Downgrades: Apple Inc., Fitbit Inc, and Vertex Pharmaceuticals Incorporated

Analysts downwardly revised their ratings and price targets on Apple Inc. (AAPL), Fitbit Inc (FIT), and Vertex Pharmaceuticals Incorporated (VRTX)

Sep 29, 2016 at 9:21 AM
facebook X logo linkedin


Analysts are weighing in on tech stocks Apple Inc. (NASDAQ:AAPL) and Fitbit Inc (NYSE:FIT), as well as drugmaker Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX). Here's a quick roundup of today's bearish brokerage notes on AAPL, FIT, and VRTX.

  • Barclays removed AAPL from its "Top Pick" list, while cutting its price target on the stock by $1 to $114 -- in line with Wednesday's close at $113.95. The brokerage firm noted that Apple Inc. stock could be overbought after rallying more than 7% in September. Additionally, Barclays suspects global smartphone sales could be slow to recover, noting "late 2016 could be similar to late 2015 when smartphone builds fell precipitously." This marks a change of pace from yesterday's upbeat analyst attention, and analysts' opinions of AAPL in general. At present, 29 out of 34 brokerage firms maintain a "buy" or better rating on the iPhone maker, which is set to slide 0.6% at the open.
  • FIT is down 4.4% in pre-market trading after Pacific Crest downgraded the stock to "underweight," citing a "disappointing start" to sales of Fitbit Inc's Charge 2 fitness tracker. An analyst at the firm also noted that "a large portion of Fitbit owners stop using the device within months, which is a fundamental issue driving high churn and that will make growth more challenging." FIT is down nearly 44% year-to-date, as of last night's finish at $16.70 -- and today's projected price move could have the stock testing newfound support above the $16 level. Meanwhile, over the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 4.04 FIT calls for each put. Moreover, the resulting call/put volume ratio sits higher than 70% of all readings in the past year.
  • At least four brokerage firms have lowered their price targets on VRTX. This comes after the company announced last night that its cystic fibrosis treatment, ORKAMBI, has been approved for use in children aged 6-11 -- but downwardly revised its 2016 sales forecast for the drug. Goldman Sachs set the lowest target at $88, just below the stock's Wednesday close at $88.84 -- down 29.4% on the year. Still, 10 out of 14 analysts call Vertex Pharmaceuticals Incorporated a "buy" or better, without a "sell" in sight. Though options volume on the stock is typically light, speculators have taken a sharply call-skewed approach toward options set to expire in the next three months. VRTX's Schaeffer's put/call open interest ratio (SOIR) of 0.31 sits just 2 percentage points from an annual low.
Find out where the Dow lands right after the closing bell. Sign up now for Schaeffer's Market Recap
 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?

 

 

(function(doc, script) { var js, fjs = doc.getElementsByTagName(script)[0], frag = doc.createDocumentFragment(), add = function(url, id) { if (doc.getElementById(id)) {return;} js = doc.createElement(script); js.src = url; id && (js.id = id); frag.appendChild( js ); }; // Google+ button //add('https://apis.google.com/js/platform.js', async="defer"); // Facebook SDK add('//connect.facebook.net/en_US/all.js#xfbml=1&appId=772755279557744', 'facebook-jssdk'); // Twitter SDK //add('//platform.twitter.com/widgets.js', charset='utf-8'); fjs.parentNode.insertBefore(frag, fjs); }(document, 'script'));