Schaeffer's Trading Floor Blog

Analyst Downgrades: Cree, Inc., Baidu Inc (ADR), and SodaStream International Ltd

Analysts downwardly revised their ratings on CREE, BIDU, and SODA

by 2/27/2014 9:37 AM
Stocks quoted in this article:

Analysts are weighing in today on semiconductor specialist Cree, Inc. (NASDAQ:CREE), Chinese search engine Baidu Inc (ADR) (NASDAQ:BIDU), and home beverage concern SodaStream International Ltd (NASDAQ:SODA). Here's a quick roundup of today's bearish brokerage notes.

  • Piper Jaffray initiated a "neutral" rating and a price target of $67 on CREE this morning. Since the start of 2014, the equity has failed to make any significant moves, currently down a mere 0.3% to trade at $62.47. With that being said, short interest grew 5.3% over the last two reporting periods, and now makes up 9.8% of Cree, Inc.'s available float. It would take nearly four sessions to cover these bearish bets, at the shares' average pace of trading.

  • The brokers on Wall Street have mixed feelings about BIDU's fourth-quarter earnings report. Specifically, Morgan Stanley downgraded the stock to "equal weight" from "overweight," while Goldman Sachs and Deutsche Bank both slashed their price targets. (Piper Jaffray, Pacific Crest, and Stifel, meanwhile, handed out positive notes.) While Baidu Inc (ADR) has climbed a modest 11.9% over the past month to trade at $178.21, its short-term options traders have been extremely call-heavy. This is evidenced in the fact that BIDU's Schaeffer's put/call open interest ratio (SOIR) of 0.61 ranks lower than all comparable readings taken from the past year.

  • SODA's less-than-stellar earnings report for the fourth quarter, released yesterday morning, led Citigroup and Deutsche Bank to lower their respective price targets to $48 and $37 from $53. Year-to-date, the equity has shed 20.3% to trade at $39.41, and its options speculators have grown bearish of late. In fact, SodaStream International Ltd's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.07 ranks in the 82nd annual percentile, demonstrating puts have been bought to open over calls at an accelerated pace over the past two weeks.

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