Q2 STOCKS TO BUY

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
 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter