Schaeffer's Trading Floor Blog

Analyst Downgrades: DVN, FSLR, and ONNN

Analysts downwardly revised their ratings on Devon Energy, First Solar, and ON Semiconductor

by 5/22/2012 9:11 AM
Stocks quoted in this article:

Analysts are weighing in today on oil-and-gas issue Devon Energy Corporation (DVN - 62.89), alternative energy specialist First Solar, Inc. (FSLR - 13.83), and chip stock ON Semiconductor Corp. (ONNN - 6.90). Here's a quick roundup of today's bearish brokerage notes.

  • Wells Fargo downgraded DVN to "market perform" from "outperform," diverging from the optimistic majority with its middling opinion of the stock. Currently, analysts have doled out 13 "buy" or better ratings on DVN, along with just six "holds" and zero "sells." The equity has shed 22% of its value over the past 12 months, but it's now lingering just above the $62 level. This area has provided a floor for DVN on several occasions since last August, and it also coincides with the stock's year-to-date breakeven. Ahead of the bell, the shares are set to test this supportive region.

  • FSLR was hit with a price-target cut to $15 from $25 at UBS, with the downwardly revised target representing a slim premium of 8.5% to Monday's close at $13.83. The solar stock has been free-falling on the charts -- down about 89% over the past year, and 59% so far in 2012. As a result, most analysts have already fled the bullish camp, with FSLR sporting just four "buys" out of 27 total brokerage ratings.

  • ThinkEquity lowered its price target on ONNN to $7 from $9, suggesting the brokerage firm only expects about 10 cents' worth of upside from the stock's most recent close at $6.90. The shares have swallowed a loss of 10.6% year-to-date, but ONNN is now trading just north of familiar support in the $6-$6.50 area. This region has contained the equity's lows since June 2009, and could continue to provide a floor for the semiconductor stock during the near term.

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