Yesterday was SCS' worst day in more than 3 years
Office furniture firm Steelcase Inc. (NYSE:SCS) saw its stock price crash 13.6% Wednesday, its worst single-day performance in over three years, after the company issued a cautious guidance due to slowing growth in international markets, which could eat into margins. However, analysts at Raymond James felt that Steelcase's fourth-quarter results were "solid," and called the sell-off in SCS shares as "puzzling."
Moreover, the brokerage firm went ahead and upgraded its view on the equity to "strong buy" from "outperform," and bumped its price target up by $1 to $21. Going from the security's closing price of $15.11 from Wednesday, this represents a 39% premium to current levels.
Only four total analysts are in coverage on Steelcase, and their average 12-month price target is $19. The shares gapped up to an annual high of $19.35 back on Sept. 21, but those gains quickly evaporated, and SCS fell to $13.96 by late December.
As one might suspect, options volume is typically quite low on SCS, but those who have speculated on the stock have been betting on an upside move. For instance, peak open interest resides at the April 17.50 call, and most of the contracts crossed at the ask price, hinting at potential buy-to-open activity.