Stock Analysts’ Downgrades for October, 7th (ADTN, AOI, ATOS, CFP, EIF, GK, OVTI, PDN, PNY, RSH)
Adtran (NASDAQ:ADTN) was downgraded by analysts at Zacks from an outperform rating to a neutral rating. They currently have $28.00 price target on the stock. Zacks’ analyst wrote, “We are downgrading our recommendation on ADTRAN to Neutral based on its high level of current valuation. The stock price has soared more than 74% in the last year and currently provides limited opportunity for above market gain. Meanwhile, ADTRAN continues to perform well owing to solid contributions from its Internetworking and Broadband Access product divisions. The company benefits from an improved spending atmosphere and increased strategic investments by ADTRAN’s carrier customers. The company has stabilized its businesses with the Tier 1 carriers, while generating contracts from Tier 2 carriers. The Enterprise division complements with strong sales of IP gateway and switch products. We expect ADTRAN to benefit from market share gain, new product offerings, strong international sales and growing service revenues. We believe that free cash flow will also remain steady in the near future. “
Africa Oil (CVE:AOI) was downgraded by analysts at Socgen from a hold rating to a sell rating.
Atossa Genetics (NASDAQ:ATOS) was downgraded by analysts at Sidoti to a neutral rating.
Canfor Corporation (TSE:CFP) was downgraded by analysts at Raymond James from a strong-buy rating to an outperform rating.
Exchange Income (TSE:EIF) was downgraded by analysts at Cormark from a buy rating to a market perform rating.
G & K Services Inc. Shs -A- (NYSE:GK) was downgraded by analysts at Sidoti from a buy rating to a neutral rating.
OmniVision Technologies (NASDAQ:OVTI) was downgraded by analysts at Zacks from an outperform rating to a neutral rating. The firm currently has $16.00 price target on the stock. Zacks’ analyst wrote, “OmniVision is an OEM of CMOS image sensors and support circuitry used within handsets, notebooks and other mass markets. Its first-quarter earnings beat the Zacks Consensus but guidance disappointed. The company has a strong position in the handset market and is also expanding into other areas. We like its product roadmap, growth prospects, strengthening position in the fast-growing Chinese market and management execution and believe that it will be able to deal with the short product life cycles and temporary slowdown in the computing and smartphone markets. However, the mix shift to higher-resolution sensors is likely to be offset by some inventory buildup, increased competition and price pressures in the near term. We therefore downgrade OmniVision shares from Outperform to Neutral.”
Paladin Energy (TSE:PDN) was downgraded by analysts at CSFB from a neutral rating to an underperform rating. They currently have C$0.50 target price on the stock, down from their previous target price of C$0.75.
Piedmont Natural Gas (NYSE:PNY) was downgraded by analysts at TheStreet to a hold rating.
RadioShack Corp. (NYSE:RSH) was downgraded by analysts at Zacks from a neutral rating to an underperform rating. Zacks currently has $3.00 price target on the stock. Zacks’ analyst wrote, “We downgrade our recommendation on RadioShack to Underperform ahead of its third quarter of 2013 financial results. The nightmare of RadioShack persists as the company continues to perform disappointingly. This somber condition is primarily due to weakness in the company’s postpaid wireless business. RadioShack’s core Consumer Electronics retail business is on a secular downtrend. Consumers now prefer purchasing online to visiting retail stores. Declining foot traffic has severely affected RadioShack’s business. Most of the consumers prefer tablets and smartphones, which are less profitable for the retail industry. Moreover, the retail industry has become more competitive. Management suspended its dividend payment in order to reduce the company’s debt burden. We do not find any immediate growth catalyst and consequently do not expect the company to achieve profitability anytime soon.”
Vivo Participacoes SA (NYSE:VIV) was downgraded by analysts at Credit Suisse from an outperform rating to a neutral rating.
West Fraser Timber Co. (TSE:WFT) was downgraded by analysts at Raymond James from a strong-buy rating to an outperform rating.
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