Analyst Update: Cheniere, Capstone Turbine, TriQuint

Analysts adjusted their ratings on LNG, CPST, and TQNT

Josh Selway

Dec 15, 2014 at 3:31 PM

Analysts are weighing in today on liquid natural gas specialist Cheniere Energy, Inc. (NYSEMKT:LNG), microturbine concern Capstone Turbine Corporation (NASDAQ:CPST), and radio frequency solutions provider TriQuint Semiconductor (NASDAQ:TQNT). Here's a quick look at today's brokerage notes on LNG, CPST, and TQNT.

Even after Credit Suisse reinstated its "outperform" rating and an $84 price target -- a 35.1% premium to its current price of $62.20 -- LNG has dropped 4.1% today. It's just more of the same for a stock that's underperformed the broader S&P 500 Index (SPX) by almost 23 percentage points in the past three months. Options traders foresee more downside on the horizon. Specifically, at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 2.86 Cheniere Energy, Inc. puts for every call in the past two weeks, marking an annual bearish extreme for this reading. This is contrary to the sentiment among brokerage firms, as 60% of analysts covering LNG rate it a "buy" or better.

CPST shrugged off a price target cut from FBR (to $2 from $2.50), thanks to news that it received a "substantial order" for a pipeline project in Mexico. The equity was last seen 7% higher at $0.76. Despite today's price-target cut -- and CPST's year-to-date loss of roughly 41% -- all four covering firms have doled out "strong buy" recommendations. Capstone Turbine Corporation's jump today may be the result of a short-squeeze situation, as short interest makes up nearly 15% of the equity's total float. It would take over five weeks for these traders to cover their bearish bets, at CPST's average daily trading volume.

D.A. Davidson cut TQNT -- and RF Micro Devices, Inc. (NASDAQ:RFMD), with whom the company is merging later his month -- to "neutral" from "buy." The equity dropped 2.8% today to $25.14, but its year-to-date gain is still an astounding 202%. Sentiment surrounding the stock is mostly bullish. For starters, 67% of covering analysts rate the stock a "buy" or better. Elsewhere, TriQuint Semiconductor's 10-day ISE/CBOE/PHLX call/put volume ratio of 16.35 lands in the 82nd percentile of its annual range.

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