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Analyst Downgrades: Amazon.com, Inc., McKesson Corporation, and Nokia Corp

Analysts downwardly revised their ratings and price targets on Amazon.com, Inc. (AMZN), McKesson Corporation (MCK), and Nokia Corp (ADR) (NOK)

Oct 28, 2016 at 9:31 AM
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Analysts are weighing in on e-tailer Amazon.com, Inc. (NASDAQ:AMZN), drug distributor McKesson Corporation (NYSE:MCK), and telecom stock Nokia Corp (ADR) (NYSE:NOK). Here's a quick roundup of today's bearish brokerage notes on AMZN, MCK, and NOK.

  • AMZN is down 5.2% at $775.05, after the internet retailer missed on quarterly earnings amid rising costs, and offered lackluster current-quarter guidance. The response on Wall Street has been mixed, with Deutsche Bank, Goldman Sachs, and RBC cutting their price targets, but Canaccord Genuity and Susquehanna raising their outlooks to $900 and $1,250, respectively -- both in record-high territory. Even after accounting for this morning's bearish gap, Amazon.com, Inc. remains nearly 15% higher year-to-date, explaining why most analysts have taken a glass-half-full approach toward the shares. Specifically, 28 of 31 brokerage firms rate the stock a "buy" or better.
  • MCK slipped up in the earnings confessional, and slashed its full-year forecast. In response, at least five brokerage firms weighed in bearishly, including Deutsche Bank -- which lowered its rating to "hold" and its price target to $153. Moreover, Deutsche Bank said, "MCK's comments about sell-side margin pressure and price competition will likely spook already skittish drug supply chain investors." In early trading, McKesson Corporation has slid 19.8% to trade at $128.71 -- in three-year-low territory -- and has landed on the short-sale restricted list. Option bears should be thrilled. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), MCK has racked up a 10-day put/call volume ratio of 2.58 -- just 15 percentage points from a 12-month peak.
  • NOK is down sharply for a second straight day, slipping 3.6% to trade at $4.56 -- a three-year low. Bearish analyst notes are pressuring the shares, just a day after Nokia Corp reported a steep drop in quarterly earnings and sales. Danske Bank lowered its opinion to "hold," while at least 11 other analysts trimmed their price targets. Today's price action is a boon to the many bearish options bettors seen at the ISE, CBOE, and PHLX of late. Specifically, NOK's 10-day put/call volume ratio across those exchanges is 1.99, outstripping 90% of comparable readings from the past year.
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