Analyst Downgrades: QUALCOMM, Nu Skin, and SolarCity

Analysts issued bearish notes on QCOM, NUS, and SCTY

Nov 6, 2014 at 9:25 AM
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Analysts are downwardly revising their ratings today on networking specialist QUALCOMM, Inc. (NASDAQ:QCOM), nutritional supplements name Nu Skin Enterprises, Inc. (NYSE:NUS), and Elon Musk-helmed energy firm SolarCity Corp (NASDAQ:SCTY). Here's a quick look at today's bearish brokerage notes on QCOM, NUS, and SCTY.

  • QCOM is down 7.5% in pre-market action after last night's earnings report, and the stock has been hit with nine price-target cuts this morning. Bernstein has the lowest expectations for QUALCOMM, Inc., as the brokerage firm slashed its price target to $70 from $80 -- implying expected downside of more than 9% from Wednesday's close at $77.20. Today's post-earnings plunge is set to completely erase QCOM's year-to-date gain of roughly 4%, but options traders were bracing for a negative reaction in the shares. Today's drop will continue a bearish trend for QCOM, which has declined in the session following three of its last four quarterly reports.

  • NUS plummeted 13.2% Wednesday to close at $43.76, as Wall Street panned the company's disappointing fourth-quarter guidance. The stock has shed another 0.3% ahead of the bell this morning, thanks in part to a Canaccord Genuity price-target cut to $45 from $53. However, negative attention is nothing new for Nu Skin Enterprises, Inc., as two-thirds of analysts following the shares maintain a "hold" or "sell" rating. Plus, NUS bears have sold short a significant 11.8% of the equity's float. With the stock trading just a few points north of familiar support at the $40 level, additional losses could be limited during the short term.

  • Last night's third-quarter results from SCTY inspired price-target cuts from Canaccord Genuity (to $87 from $95) and Raymond James (to $75 from $80), even as both brokerage firms reiterated bullish ratings on the stock. However, after selling off on Wednesday, SolarCity Corp shares have bounced 0.7% in electronic trading. The stock still has some work to do to get back on positive ground for 2014, though, as SCTY ended yesterday at $54.44, down 4.2% year-to-date. Any additional negative notes from analysts could complicate the stock's rebound attempts, as the average 12-month price target stands at an ambitious $89.40 -- in record-high territory for SCTY.

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