Analysts are weighing in on wearable tech stock Fitbit Inc (NYSE:FIT), steel manufacturer ArcelorMittal SA (ADR) (NYSE:MT), and farming equipment maker Tractor Supply Company (NASDAQ:TSCO). Here's a quick roundup of today's bearish brokerage notes on shares of FIT, MT, and TSCO.
Fitbit stock is down 0.9% at $5.37, after Citi reiterated a "sell" rating on the shares, with the brokerage firm saying channel checks are pointing to weakness in domestic markets. This is more of the same from FIT, which hit a record low of $5.04 on May 31. Despite the struggles, options traders keep buying Fitbit call options. For example, the shares have a 10-day call/put volume ratio of 2.78 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). And FIT's Schaeffer's put/call open interest ratio (SOIR) of 0.47 shows call open interest more than doubles put open interest among options expiring within three months.
BofA-Merrill Lynch downgraded Europe's ArcelorMittal stock to "underperform" from "buy," and said it expects global steel prices to sink in the near term, due to lessened demand out of China. U.S.-listed MT shares were last seen 3% lower at $20.56, tumbling toward their 320-day moving average, a trendline not encountered since last July. Most analysts still maintain a "buy" rating on MT stock, though, while its average 12-month price target is $29.11 -- in two-year-high territory.
Wedbush cut its price target on Tractor Supply stock to $70 from $80, but insists "this tractor has not stalled." The brokerage firm said low expectations and an attractive valuation make for an opportune entry point in TSCO shares, but cautioned "it's tough to buy a stock in the face of a potential cut to 2017 guidance." While Tractor Supply has bounced back some since bottoming at a roughly four-year low of $52.85 on May 24, they haven't traded above their 20-day moving average since mid-April. At last check, the stock was down 1.7% at $54.94. Even with TSCO's recent struggles, eight of 20 brokerage firms consider the equity a "strong buy."