Analyst Downgrades: Tesla Motors, Inc., Chevron Corporation, and iDreamSky Technology Limited

Analysts downwardly revised their ratings on Tesla Motors Inc (TSLA), Chevron Corporation (CVX), and iDreamSky Technology Ltd (ADR) (DSKY)

by Griffin Kruse

Published on Mar 25, 2015 at 9:13 AM
Updated on Apr 20, 2015 at 5:32 PM

Analysts are weighing in on electric car concern Tesla Motors Inc (NASDAQ:TSLA), blue chip Chevron Corporation (NYSE:CVX), and China-based mobile gaming platform iDreamSky Technology Ltd (ADR) (NASDAQ:DSKY). Here's a quick roundup of today's bearish brokerage notes on TSLA, CVX, and DSKY.

  • TSLA is pointed 1.5% lower ahead of the bell, after CLSA downgraded the equity to "underperform" from "outperform," and cut its price target to $220 from $275. On the charts, Tesla Motors Inc has been sliding, down 30.8% from its Sept. 4 all-time high of $291.42, to close yesterday at $201.72. Accordingly, puts have been prominent in the options pits, as TSLA's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.13 ranks higher than 88% of all equivalent readings taken over the past year.

  • SocGen cut its price target on CVX by $4 to $115, however, the shares are 0.4% higher in electronic trading. The negative note comes as no surprise, considering the shares of Chevron Corporation have shed 22.9% since notching an all-time high of $135.10 on July 24, to close yesterday at $104.20. Sentiment in the options pits has been bearish, as CVX's 50-day ISE/CBOE/PHLX put/call volume ratio of 1.41 stands in the 96th percentile of its annual range. Elsewhere, the brokerage bunch is divided on the security, with half of covering analysts rating the stock a "buy" or better, and the remaining half doling out "hold" or worse recommendations.

  • Despite Monday's well-received fourth-quarter earnings report, J.P Morgan Securities downgraded DSKY to "neutral" from "overweight," and sliced its price target to $9 from $24. iDreamSky Technology Ltd -- which closed at $7.55 yesterday -- is looking at 3.9% drop out of the gate today, which will add to a 55.8% year-to-date deficit. In fact, if selling pressure heats up, DSKY could approach record-low territory, after just hitting an all-time low on March 17. Short sellers have taken notice of this negative price action, as roughly 10.6% of DSKY's available float is sold short, which would take nearly eight sessions to cover, at average trading volumes.

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