Schaeffer's Trading Floor Blog

Analyst Downgrades: J.C. Penney Company, Inc., Canadian Solar Inc., and Molycorp Inc

Analysts downwardly revised their ratings on JCP, CSIQ, and MCP

by 5/20/2014 9:25 AM
Stocks quoted in this article:

Analysts are weighing in today on retail chain J.C. Penney Company, Inc. (NYSE:JCP), alternative energy provider Canadian Solar Inc. (NASDAQ:CSIQ), and rare earths concern Molycorp Inc (NYSE:MCP). Here's a quick roundup of today's bearish brokerage notes.

  • Wells Fargo has turned the tables on JCP this morning, downgrading the stock to "underperform" from "market perform," while other brokerage firms have offered up bullish notes of late. Technically speaking, J.C. Penney Company, Inc. shed 3.8% yesterday to close at $9.36; however, the stock remains 9.1% above its Feb. 5 record low of $4.90. Meanwhile, in the short-term options pits, the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.84 ranks in the 97th percentile of its 12-month range, meaning put open interest (relative to call open interest) is nearing annual-high levels among options expiring within the next three months.

  • Down 51.2% from its Feb. 28 multi-year high of $44.50 to trade at $21.71, CSIQ received a price-target cut to $45 from $55 at Nomura earlier today. For comparison, the average 12-month price target among analysts stands at $48.29, a whopping 122.5% above the shares' current perch. Ratings-wise, Canadian Solar Inc. is looking at four "buy" or better endorsements, versus one "hold" and not a single "sell" suggestion, leaving the door wide open for additional negative analyst notes.

  • MCP -- which has shed 49.3% year-to-date to trade at $2.85, mostly due to a poorly received earnings report earlier this month -- saw its rating dropped to "underweight" from "equal weight" at Morgan Stanley in pre-market action. Elsewhere, Molycorp Inc's short-term put open interest (compared to call open interest) has reached an annual-high level, as the equity's SOIR of 1.93 ranks higher than all similar readings taken during the past year.

permanent link
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.