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Stock Downgrades: Tilly's Is a Total Turkey

By: Minyanville
Posted: 11/27/2013 9:44:00 AM
Referenced Stocks: ADI;FRO;M;OMC;TIF

Macy's ( M ) inflatable objects might not get off the ground this Thanksgiving , but why bother with balloons tomorrow when we're in a bubble today? With assistance from another Miracle on 34th Street - the retailer rose 1.26% to hit its highest level ever - there is indeed much to be thankful for on Wall Street. US stock markets rose to records, with the Dow (INDEXDJX:.DJI) now up for four straight sessions. As for Nasdaq (INDEXNASDAQ:.IXIC), it hit 4000 for the first time since September 2000, even as its grassy Noll stepped off the greasy poll . Tiffany & Co. ( TIF ) topped the S&P 500 Index (INDEXSP:.INX) after touching an all-time best of $88.88 after announcing blingy sales to Beijing. (No wonder eight is a lucky number in China.) In the words of what Advertising Age called the "slogan of the century," a diamond is indeed forever. That matrimonial jingle was, ironically, the work of two lifelong spinsters . As for the Mad Men they loved and lost, Omnicom Group ( OMC ), home to real-life Don Drapers, gained 1.20% to a historic best.

Other than Frontline ( FRO ), which reported results three hours ago, it is slim pickings for earnings announcements today. In terms of economic events that may move US stock markets this morning, at 9:55 a.m. Eastern the University of Michigan's final figure for November consumer confidence is expected to post an improvement from the preliminary pace announced earlier in the month. At 10:00 a.m., analysts expect October leading indicators to slip from September's rate. US markets will be closed tomorrow in observance of Thanksgiving.

Analog Devices ( ADI ): Following fourth-quarter earnings that revealed weaker than expected revenue, Drexel Hamilton downgrades the tech stock to Hold from Buy.

Copa Holdings (CPA): Shares are slashed to Sell from Neutral at UBS.

Denny's (DENN): The restaurant stock gets reduced to Neutral from Buy at Janney Montgomery Scott. Yesterday's 2.74% jump has left the stock with limited upside, in the broker's estimation.

Gap Inc. (GPS): Argus cuts the clothing company to Hold from Buy.

Intel (INTC): Intel, a key Dow member, is trading lower today after being moved to Sector Perform from Outperform at RBC Capital. Its price objective on Intel, previously $27, is trimmed by $1. There are issues in both the mobile arena and Intel's return on investment, according to the investment house.

Signature Bank (SBNY): Shares are now Neutral from Buy at Sterne Agee.

Tilly's Inc. (TLYS): There is triple pre-Turkey Day trouble for Tilly's this morning. The adolescent apparel outfit gets cut by Goldman Sachs (Neutral from Buy), SunTrust (also Neutral from Buy, with its target price taken to $13 from $20), and William Blair (Market Perform from Outperform). Shares in Tilly's are currently tumbling 26.01% ahead of the open.

TiVo Inc. (TIVO): TiVo is taken to Equal Weight from Overweight at Evercore. Its concerns over TiVo include cautious fiscal fourth-quarter 2014 earnings guidance.

(See also: New Stock Coverage: Buy Cedar Fair Before Eating Fowl and Stock Upgrades: Hewlett-Packard Parties Like It's 1939 )