Schaeffer's Trading Floor Blog

Analyst Downgrades: Tesla Motors Inc (TSLA), Groupon Inc, and Gogo Inc

Analysts downwardly revised their ratings on TSLA, GRPN, and GOGO

by 5/8/2014 9:35 AM
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Analysts are weighing in today on electric car manufacturer Tesla Motors Inc (NASDAQ:TSLA), mass discount provider Groupon Inc (NASDAQ:GRPN), and in-flight connectivity provider Gogo Inc (NASDAQ:GOGO). Here's a quick roundup of today's bearish brokerage notes.

  • TSLA's current-quarter outlook was poorly received on Wall Street, with J.P. Morgan Securities and UBS each decreasing their price targets to $163 from $164, and to $200 from $230, respectively, this morning. Heading into the quarterly event, TSLA shares boasted a 33.9% year-to-date return; however, seven of its 12 covering analysts maintain "hold" or worse recommendations. Should Tesla Motors Inc continue on its upward trajectory -- the shares faced an earnings-induced hiccup on the charts this morning, tumbling to their current perch at $183.99 -- the bears on Wall Street may have a change of heart, upwardly adjusting their current positions and potentially providing additional technical tailwinds.

  • After a 20.7% earnings-induced plunge yesterday, GRPN received more bearish brokerage notes.. Among the handful of analysts weighing in this morning were Wunderlich and Morgan Stanley, which each cut their previous price targets of $13 to $10 and $9, respectively. Meanwhile, in the options pits, Groupon Inc sports a Schaeffer's put/call open interest ratio (SOIR) of 0.68, which ranks in the 79th annual percentile. In other words, short-term speculators are more put-heavy than usual on the stock right now. Out of today's gate, GRPN shares have erased some of its losses, currently up 1.4% to trade at $5.41.

  • GOGO -- which is down 50.5% year-to-date to trade at $12.35 -- received a price-target cut to $20 from $26 at Evercore this morning. Elsewhere, Gogo Inc is on the bearish radar, as well. Short interest on the equity climbed 34.7% over the past two reporting periods, bringing the total number of shares sold short to roughly 12 million. This is equivalent to a whopping 27.3% of GOGO's available float. Looking ahead, the firm will report first-quarter earnings Monday morning.

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