Midday movers: RIM, Pep Boys, Fresh Market
Stocks give up Tuesday's gains -- and then some.
Numerous brokerages cut their price targets on shares of Research In Motion (RIMM) after the company warned it expects to report an operating loss for the May quarter.
Citigroup lowered its price target for shares to $9.50 from $11.75, Jefferies took its target down to $10 from $12 and RW Baird cut its target for the stock to $8 from $10.
Jefferies said RIM's hiring of strategic advisors does not indicate a sale is imminent while Citi thinks the bankers were hired to evaluate licensing opportunities, not to sell the whole company. JMP Securities went against the grain, upgrading Research in Motion to "market perform" from "underperform" based on valuation.
Among the notable market gainers Wednesday are Neonode (NEON), up over 24% to $5.95, following a blog post in which James Altucher said the company may be an acquisition candidate and its core business alone could drive shares to $30, and The Fresh Market (TFM), up 15%, after reporting same-store sales grew 8.2% in the first quarter, driving earnings and revenue that beat Wall Street's view.
Noteworthy losers include Pep Boys (PBY), down 21%, after announcing that it has agreed to terminate the proposed merger with The Gores Group, and Teavana (TEA), down nearly 18%, after reporting same-store sales grew only 1.7% in the first quarter, leading revenue to miss consensus expectations.
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Stocks are facing some serious resistance as the bears tear into the market's respite.
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