Analyst Update: iRobot, Navistar, and RSP Permian, Inc.

Analysts adjusted their ratings on iRobot Corporation (IRBT), Navistar International Corp (NAV), and RSP Permian Inc (RSPP)

Mar 18, 2015 at 11:24 AM
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Analysts are weighing in today on artificial intelligence firm iRobot Corporation (NASDAQ:IRBT), commercial vehicle concern Navistar International Corp (NYSE:NAV), and oil-and-gas producer RSP Permian Inc (NYSE:RSPP). Here's a quick look at today's brokerage notes on IRBT, NAV, and RSPP.

  • Raymond James cut its rating of IRBT to "outperform" from "strong buy," warning that sharp drops for the yen and euro will weigh on sales growth. The bearish note has sent the shares down 6.2% to hit $30.07 -- just off an intraday low of $29.92, in territory not charted since Feb. 9. Looking back, the equity has been struggling, with the shares down 13.2% year-to-date. However, calls have been a popular choice in the options pits, as iRobot Corporation's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 8.30 sits in the 77th percentile of its annual range. Meanwhile, over 14% of the equity's available float is sold short, which would take nearly 13 sessions to buy back, at average trading volumes.

  • Morgan Stanley slashed its price target on NAV to $20 from $26 -- in two-year-low territory -- and revised its rating to "underweight" from "overweight," predicting the firm will miss consensus earnings estimates. The negative attention comes as no surprise, considering that Navistar International Corp is down 14.3% year-to-date. Today, the shares are down 6% to hit $28.71, spitting distance from their Feb. 12 annual low of $27.50. Accordingly, puts have been prominent in the options pits, as NAV's 50-day ISE/CBOE/PHLX put/call volume ratio of 4.31 sits higher than 94% of all equivalent ratings taken over the past year. What's more, nearly 17% of NAV's available float is sold short, which would take roughly 13.5 sessions to cover, at average trading volumes.

  • Yesterday, RSPP reported fourth-quarter earnings that missed analysts' expectations, and last night priced a public offering at $25.80 per share -- south of yesterday's close of $27.07. Subsequently, Roth and KLR Group cut their price targets on the equity to $29.35 and $33, respectively, with the former reiterating a "neutral" recommendation and the latter underscoring a "buy" opinion. At last check, the shares were down 7.7% to hit $24.99, and are struggling to stay in the black on a year-to-date basis. Today's negative analyst attention is relatively rare for RSPP, as two-thirds of covering analysts rate the stock a "buy" or "strong buy," with no "sell" or worse recommendations to be found.

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