Schaeffer's Trading Floor Blog

Analyst Downgrades: DreamWorks Animation SKG, Inc., Real Goods Solar, Inc., and Youku Tudou Inc (ADR)

Analysts downwardly revised their ratings on DWA, RGSE, and YOKU

by 8/20/2014 9:22 AM
Stocks quoted in this article:

Analysts are weighing in today on film firm DreamWorks Animation SKG, Inc. (NASDAQ:DWA), alternative energy concern Real Goods Solar, Inc. (NASDAQ:RGSE), and China-based Internet issue Youku Tudou Inc (ADR) (NYSE:YOKU). Here's a quick roundup of today's bearish brokerage notes on DWA, RGSE, and YOKU.

  • Janney cut its fair value target on DWA to $27 from $29 this morning, but maintained its "buy" rating on the stock. The shares have advanced 6.4% so far this week, settling Tuesday at $21.93, after DreamWorks Animation SKG, Inc. named a new chief financial officer. However, the security has run into a wall in the form of its 10-week moving average, which -- along with its 20-week cohort -- has ushered DWA 38.2% lower in 2014. Against this backdrop, it's no surprise to find most analysts in the bears' corner, as DWA boasts just one "strong buy" opinion, compared to six "holds" and two "sell" or worse ratings.

  • RGSE is bracing for a 15% plunge out of the gate, as speculators and analysts pan the company's steeper-than-expected per-share loss for the second quarter. Canaccord Genuity trimmed its price target by $1 to $3, and Cowen and Company reduced its price target to $2.50 from $2.60. Roth Capital made the most dramatic move, slashing its price target to $1.85 from $6, and downgrading RGSE to "neutral" from "buy." On the charts, Real Goods Solar, Inc. has surrendered 26.5% in 2014, and finished at $2.22 on Tuesday.

  • Finally, YOKU -- which closed at $21.52 on Tuesday -- is headed for a 7% drop at the open, after the firm reported weaker-than-expected second-quarter earnings, and offered lackluster current-quarter sales guidance. As such, Brean Capital reduced its price target on the shares to $24 from $27, but maintained a "buy" recommendation. More negative analyst notes could be on the way for Youku Tudou Inc (ADR), as four out of seven brokerage firms maintain "strong buy" opinions. A round of downgrades could exacerbate YOKU's year-to-date loss of nearly 29%.

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