Investing

8 Big Stocks Analysts Want You to Sell Now

Tyson Foods Inc. (NYSE: TSN) was downgraded to Sell from Hold at Pivotal Research on October 7, but the price target was slashed to $40 from $100 in the call. This is after the analysts view on price-fixing allegations taking shares potentially much lower.

Investors took note as the closing price ahead of the call was $74.38, but shares closed down 8.9% at $67.75 on Friday. The 52-week range is $42.89 to $77.05, and the consensus price target is $82.20.

Wells Fargo & Co. (NYSE: WFC) may have some more woes to come from its fake account scandal, at least that is the take of Raymond James. The firm downgraded Wells Fargo to Underperform from Market Perform after Illinois followed California with a financial relationship suspension.

The stock closed down 1% at $43.83 ahead of the call, but investors might want to take note that it recovered handily and closed out the week at $45.33. It has a 52-week range of $43.56 to $56.34 and a consensus price target of $50.71.

Other key analyst Sell ratings and their equivalents from the week of October 7, 2016 we shown as follows:

Citrix Systems Inc. (NASDAQ: CTXS) was downgraded to Sell from Neutral with an $81 price target at UBS. The prior closing price was $85.22, but shares ended the week at $84.30. UBS is worried that the GoTo business exit is leaving a growth vacuum, and this stock was up almost 40% since February. Their report said:

We think the next leg of the story will prove more difficult, as investor attention shifts back towards the core workspace services business. In this report we take a detailed look at revenue growth and margin trajectory going forward as well as what the core business looks like without GoTo. We move our rating to Sell given all of the moving pieces, and continue to favor VMware at lower multiples.

Rowan Companies PLC (NYSE: RDC) was downgraded to Sell from Hold and the price target was cut to $11 from $16 at Societe Generale on October 3.

This compares with a prior $15.16 close, but shares closed out the week at $14.99. The consensus price target is $15.13, and the 52-week range is $10.67 to $21.83.

Teradata Corp. (NYSE: TDC) was downgraded to Sell from Neutral and the price target was cut to $27 from $29 at UBS. The October 3 downgrade followed a prior closing price of $31, and shares closed out the week at $30.29. UBS said:

Teradata’s upcoming analyst day (the first of its kind in as many years) will offer visibility on the pace and scope of Teradata’s impending transition to a more software-centric, Cloudfirst business model. This will provide a much-needed reset to financial model expectations, but we see downside risk to estimates as we believe current consensus forecasts underestimate the duration and magnitude of the impact. As such, UBS is now below Street. This combined with the YTD outperformance (+17% vs. 6% NASDAQ) Teradata has witnessed, we downgrade shares from Neutral to Sell.

The 52-week range is $21.98 to $33.09, and the consensus price target is $28.59.

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