Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Stock Downgrades: Zynga Is in the Doghouse


Wall Street ratings agencies set the tone for today's stock market.

Congress, fighting the last war as ever, yesterday turned its attention to a Russian meteor from February when it should really be more concerned with a potential economic explosion currently heading Moscow's way via Cyprus.

A downgraded Electronic Arts (EA), whose titles include Battlefield, Command & Conquer, and Medal of Honor, imploded 8.34% on a bloody tenth anniversary of the Iraq war. Critics who claimed that the conflict was little more than a Halliburton (HAL) land-grab note with interest that stock tumbled 2.73% as oil service shares endured a second down day.

Perhaps we would have been better off adhering to the Pottery Barn rule. After all, by an interesting twist of irony its owner Williams-Sonoma (WSM) announced earnings yesterday of all days, and is surging some 5.07% before the opening bell.

The Federal Open Market Committee today concludes its two-day policy meeting, with an interest rate announcement expected at the new time of 2:00 p.m. Eastern. On the corporate front, FedEx (FDX), General Mills (GIS), Guess (GES), Jabil Circuit (JBL), Lennar (LEN), and Oracle (ORCL) are all due to announce earnings.

Adobe Systems (ADBE): A contrary cut for the Acrobat owner, which is jumping before the bell after announcing earnings. It is slashed to Hold from Buy at Stifel.

AGCO Corporation (AGCO): Shares are downgraded to Underperform from Market Perform at Wells Fargo.

AmerisourceBergen (ABC): The stock, a stellar performer on Tuesday and upgraded elsewhere this morning, gets cut to Neutral from Buy with a $54 target price at ISI Group. An excessive valuation multiple relative to competitors warrants greater caution at current levels, the broker believes.

Cardinal Health (CAH): Citigroup slashes the shares to Neutral from Buy after yesterday's steep slide.

Cimarex (XEC): The company is moved to Market Perform from Outperform at FBR Capital, whose target is $72.

Con-way Inc. (CNW): CNW gets cut to Equal Weight from Overweight at Stephens after the company issues a first quarter profit warning. The stock
is down slightly before the bell as I write.

Coventry Health Care (CVH): Talk about being "Sent to Coventry" -- shares are slashed to Market Perform from Outperform with Wells.

Deere (DE): The tractor titan, which tumbled 1.36% on Tuesday, is today taken to Underperform from Market Perform with Wells.

Maxwell Technologies (MXWL): Piper Jaffray moves MXWL to Neutral from Overweight.

Symantec (SYMC): Shares get downgraded to Perform from Outperform at Oppenheimer due to valuation.

Tesoro Logistics (TLLP): Wunderlich lowers the limited partnership to Hold from Buy, believing better value presently exists elsewhere a strong recent run in the stock.

Walgreen (WAG): The recently surging stock - upgraded elsewhere today - gets pulled from Goldman Sachs' list of Conviction Buys.

Zynga (NASDAQ:ZNGA): The social gaming firm famous for its canine logo is now Neutral from Buy at Bank of America-Merrill Lynch. Its analysts wrote in a note that "competitive real-money poker launches and summer seasonality on core businesses could limit further enthusiasm." The intact price objective is $3.90, and shares are accordingly slumping 3.51% in today's pre-market trading.

(See also: New Stock Coverage: Has Whole Foods Become Spoiled? and Stock Upgrades: BlackBerry Is All Green Thumbs.)
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos