Analyst Downgrades: ArcelorMittal SA, Hertz Global Holdings, Inc, and Walgreens Boots Alliance Inc

Analysts downwardly revised their ratings and price targets on ArcelorMittal SA (ADR) (NYSE:MT), Hertz Global Holdings, Inc (NYSE:HTZ), and Walgreens Boots Alliance Inc (NASDAQ:WBA)

Josh Selway

Nov 8, 2016 at 9:39 AM

Analysts are weighing in on steel stock ArcelorMittal SA (ADR) (NYSE:MT), car rental specialist Hertz Global Holdings, Inc (NYSE:HTZ), and pharmacy chain Walgreens Boots Alliance Inc (NASDAQ:WBA). Here's a quick roundup of today's bearish brokerage notes on MT, HTZ, and WBA.

MT posted strong third-quarter earnings results, but the company's lackluster current-quarter forecast has the shares down 6.7% at $6.36. Exacerbating the losses, BofA-Merrill Lynch cut its rating to "neutral" from "buy." Coming into today, ArcelorMittal SA had been stellar on the charts, more than doubling year-to-date, thanks in part to support from its 100-day moving average. Elsewhere, options traders may not be pleased with today's drop, as call buying has outpaced put buying by a 6-to-1 margin during the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).

Disappointing quarterly results and a downbeat outlook have HTZ 41% lower at $21.12, fresh off a seven-year low of $20.30, and on the short-sale restricted list. Deutsche Bank swooped in to downgrade the stock to "hold" from "buy," and cut its price target to $24 from $59, while MKM Partners lowered its price target to $31 from $66. Unlike shareholders, Hertz Global Holdings, Inc short sellers should be in great shape. Specifically, over 10% of HTZ's float is controlled by short sellers, equating to six days' worth of buying power, at the stock's average daily volumes.

An ugly full-year forecast from rival CVS Health Corp (NYSE:CVS) has WBA down 5% at $77.38. Not helping matters is a price-target cut to $90 from $95 at Leerink. Still, most analysts are bullish on Walgreens Boots Alliance Inc, with 12 of 16 rating it a "buy" or better, while none recommend selling the stock. This optimism comes despite the fact WBA has sunk nearly 9% in 2016, while M&A question marks continue to hang over the shares.

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