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Analyst Downgrades: GT Advanced Technologies Inc, Seadrill Ltd, and Yingli Green Energy Hold. Co. Ltd. (ADR)

Analysts downwardly revised their ratings on GTAT, SDRL, and YGE

by 8/28/2014 9:13 AM
Stocks quoted in this article:

Analysts are weighing in today on LED company GT Advanced Technologies Inc (NASDAQ:GTAT), offshore drilling contractor Seadrill Ltd (NYSE:SDRL), and China-based solar name Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE). Here's a quick roundup of today's bearish brokerage notes on GTAT, SDRL, and YGE.

  • GTAT has had a strong 2014, more than doubling in value to trade at $18.57. Nevertheless, Raymond James cut its rating on the stock to "underperform" from "market perform." Elsewhere, options traders have been drawn to GT Advanced Technologies Inc puts over calls. The equity's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.53 stands at an annual high. These speculators aren't necessarily bearish, however -- some may be GTAT shareholders picking up puts to protect against a pullback in the technical outperformer.

  • SDRL got hammered yesterday in the wake of a second-quarter earnings miss. By session's end, the shares were off 2.8% at $36.63. On the Street, Cowen and Natixis responded by lowering their respective price targets to $32 (from $36) and NOK 203 (from NOK 218), while Societe Generale upped its target to NOK 217 (from NOK 198). Should Seadrill Ltd struggle in the aftermath of the pair of bearish notes, it could attract additional short selling. At present, 8% of the stock's float is sold short, which would take more than eight sessions to cover, at SDRL's average daily trading volume.

  • Finally, YGE has lost one-third of its value in 2014, and currently rests at $3.38. Just yesterday, the equity shed 5% of its value due to a poorly received second-quarter earnings report. Subsequently, Roth slashed its price target on Yingli Green Energy Hold. Co. Ltd. (ADR) to $3.50 from $4, to go along with a "neutral" rating. Additional price-target cuts could be on the way, as the shares' average 12-month price target of $4.89 stands at a nearly 45% premium to YGE's current perch.

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