Analyst Downgrades: Cisco, Canadian Solar, and Marvell

Analysts downwardly revised their ratings on CSCO, CSIQ, and MRVL

Nov 13, 2014 at 9:41 AM
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Analysts are weighing in today on networking giant Cisco Systems, Inc. (NASDAQ:CSCO), alternative energy name Canadian Solar Inc. (NASDAQ:CSIQ), and semiconductor manufacturer Marvell Technology Group Ltd. (NASDAQ:MRVL). Here's a quick roundup of today's bearish brokerage notes on CSCO, CSIQ, and MRVL.

  • Despite topping the Street's per-share profit expectations last night, CSCO is being greeted this morning by a round of bearish brokerage notes after a disappointing current-quarter earnings forecast. Specifically, Buckingham, MKM Partners, and UBS each lowered their price targets, while SunTrust Robinson upped its target to $30 from $27. The four brokerage firms also reiterated their ratings -- "neutral" for the former pair, and "buy" for the latter pair. Nevertheless, Cisco Systems, Inc. has popped 1.2% out of the gate to hover near $25.41. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have been rolling the dice on losses for the shares. CSCO's 10-day put/call volume ratio across this trio of exchanges registers at 2.29 -- in the extreme 100th percentile of its 12-month range.

  • CSIQ -- which dropped nearly 11% yesterday to settle at $28.08, following a poorly received earnings report (which included a weak current-quarter outlook) -- is extending its losses today, following a price-target reduction to $46 from $48 at Canaccord Genuity. However, the brokerage firm maintained its "buy" opinion on the stock. Wednesday's move lower has Canadian Solar Inc. sitting in negative year-to-date territory, and that trend continues today, with the security already down another 3.1%. Should this weak price action continue, the Street may begin to issue additional bearish brokerage notes. After all, each of the five analysts covering CSIQ have given it a "buy" or "strong buy," while the equity's consensus 12-month price target stands at a lofty $43.63 -- meaning downgrades and/or price-target cuts could be forthcoming.

  • Finally, Goldman Sachs downgraded MRVL to "sell" from "neutral," and trimmed its price target by $2 to $12, due to headwinds in the mobile and wireless sector, and overhang from a patent-infringement lawsuit by Carnegie Mellon University. Additionally, Raymond James reduced its price target to $17 from $18, but underscored its "outperform" assessment. That said, Marvell Technology Group Ltd. has dropped about 2.5% out of the gate, adding to its 7.3% year-to-date deficit as of last night's $13.33 close. If this technical trend persists, additional bearish brokerage notes could come down the pike. At present, nine out of 20 covering analysts still have "buy" or better ratings on MRVL, and the equity's consensus 12-month price target of $16.38 stands at a nearly 23% premium to current trading levels.
 

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