Notable Downgrades: Twitter (TWTR), Yahoo (YHOO), Harley-Davidson (HOG), Chipotle Mexican Grill (CMG), VMware (VMW)

Downgrades

Analysts at Morgan Stanley (MS) this morning downgraded Twitter, Inc. (TWTR) from ‘Equal-Weight’ to ‘Underweight’, noting limited user growth an declined engagement and a lack of advertiser demand. The target price for TWTR is lowered from $36 to $24.

On valuation measures, Twitter Inc. stock it’s trading at a forward P/E multiple of 46.73x next year’s estimated earnings. The t-12-month revenue at Twitter Inc. is $1.78 billion. TWTR ‘s ROE for the same period is (16.49%).

Shares of the $19.56 billion market cap company are down 39.03% year-over-year and 13.83% year-to-date.

TWTR dropped $1.98 to $28.93 in recent trading.

Yahoo! Inc. (YHOO) was downgraded from ‘Buy’ to ‘Neutral’ at Mizuho. The broker also lowered its price target on the name to $37 from $40 in reaction to below-consensus earnings and guidance. Yahoo reported third-quarter EPS of $0.15 after yesterday’s market close, compared to the consensus estimate of $0.16. Revenues declined 8.3% from last year to $1 billion. Analysts expected revenues of $1.02 billion. Looking ahead, the web portal guided Q415 revenues of $920 – $960 million, as compared to analysts’ expectations of $1.08 billion.

Shares of Yahoo have lost $1.50 to $31.33 in midday trading on Wednesday, giving it a market cap of roughly $29.50 billion. The stock traded as high as $52.62 in Nov. 18, 2014.

Harley-Davidson, Inc. (HOG) was reiterated a ‘Buy’ by Stifel analysts on Wednesday. The broker however, cut its price target on the stock to $59 from $71. HOG was also downgraded to ‘Neutral’ from ‘Overweight’ at JP Morgan (JPM).

Harley-Davidson Inc. recently traded at $46.57, a loss of $1.68 over Tuesday’s closing price. The name has a current market capitalization of $9.56 billion.

As for passive income investors, the manufacturer of cruiser and touring motorcycles pays shareholders $1.24 per share annually in dividends, yielding 2.24%

Chipotle Mexican Grill, Inc. (CMG) was reiterated as ‘Equal Weight’ with a $660 from $685 price target on Wednesday by Barclays.

CMG was down $52.02 at $653.61 in midday trade, moving within a 52-week range of $597.33 to $758.61. The name, valued at $20.35 billion, opened at $651.06.

On valuation measures, Chipotle Mexican Grill Inc. shares are currently priced at 40.03x this year’s forecasted earnings. Ticker has a t-12 price/sales ratio of 4.95. EPS for the same period registers at $16.33.

Currently there are 16 analysts that rate CMG a ‘Buy’, no analyst rates it a ‘Sell’, and 13 rate it a ‘Hold’.

VMware, Inc. (VMW) was downgraded by Atlantic Equities from an ‘Overweight’ rating to a ‘Neutral’ rating in a research report issued to clients on Wednesday.

VMW closed at $68.76 on Tuesday and is currently trading down $14.99.

In the past 52 weeks, shares of Palo Alto, California-based virtualization infrastructure solutions provider have traded between a low of $53.77 and a high of $93.43 and are now trading at $53.77.

Shares are down 16.67% since the beginning of the year.

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