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Analyst Downgrades: GoPro, Transocean, JPMorgan
Analysts downwardly revised their ratings on GoPro Inc (NASDAQ:GPRO), Transocean LTD (NYSE:RIG), and JPMorgan Chase & Co. (NYSE:JPM)
Josh Selway
Analysts downwardly revised their ratings on GoPro Inc (GPRO), Transocean LTD (RIG), and JPMorgan Chase & Co. (JPM)
Analysts are weighing in on camera fanatic GoPro Inc (NASDAQ:GPRO), drilling firm Transocean LTD (NYSE:RIG), and financial behemoth JPMorgan Chase & Co. (NYSE:JPM). Here's a quick roundup of today's bearish brokerage notes on GPRO, RIG, and JPM.
Plain and simple, GPRO has been terrible on the charts recently. The shares have lost more than half their value year-to-date, and just touched an all-time low of $26.68 as the downward momentum continues. Contributing to the sell-off, Piper Jaffray cut its outlook to "neutral" from "overweight," and its price target to $25 from $54. The shares have fallen 2.3% to $27.34 in response. It's likely short sellers will continue to pile on. Short interest ballooned more than 70% in the two most recent reporting periods. Now, more than 36% of GoPro Inc's float is controlled by these bears.
Despite a downgrade to "reduce" from "neutral" at Seaport Global Securities, and a price-target reduction at J.P. Morgan Securities to $11 from $13, RIG is 1% higher at $15.73 this morning. This is a rare feat of strength from a security that was off 15% year-to-date coming into today. Shifting gears, skepticism abounds on the Street. None of the 18 covering brokerage firms rate Transocean LTD a "buy," and its average 12-month price target of $11.95 is below current levels.
JPM is off a bigger-than-anticipated 2.5% this morning at $60.08, after the firm missed third-quarter earnings expectations. Responding to the lackluster quarterly report, Bernstein and KBW each lowered their price targets, to $71 and $74, respectively. On the other hand, Nomura bumped its price target to $72 from $70. Even though JPMorgan Chase & Co. has lagged behind the S&P 500 Index (SPX) during recent months, there's still a clear call bias among short-term speculators. This is evidenced by the stock's Schaeffer's put/call open interest ratio (SOIR), which stands at 0.42 -- only 8 percentage points from an annual low.
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