Analyst Downgrades: SolarCity, Abercrombie, Charter Comm

Analysts downwardly revised their ratings on SolarCity Corp (NASDAQ:SCTY), Abercrombie & Fitch Co. (NYSE:ANF), and Charter Communications, Inc. (NASDAQ:CHTR)

May 4, 2015 at 9:59 AM
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Analysts are weighing in today on renewable energy focus SolarCity Corp (NASDAQ:SCTY), retailer Abercrombie & Fitch Co. (NYSE:ANF), and cable services provider Charter Communications, Inc. (NASDAQ:CHTR). Here's a quick roundup of today's bearish brokerage notes on SCTY, ANF, and CHTR.

  • SCTY has given back 2.3% this morning to trade at $60.18, after Baird lowered its opinion on the stock to "neutral," while slashing its price target to $65 from $76. Even with today's deficit, the security is 12.5% above its year-to-date breakeven level -- perhaps part of the reason call buying has been so popular of late. For instance, SolarCity Corp's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio comes in at 3.94 -- higher than 89% of similar readings from the past 12 months.Meanwhile, the firm is slated to take its turn in the earnings confessional after tomorrow's close.

  • Elsewhere, ANF is 2.3% lower today at $21.99, due to RBC initiating coverage on the shares with an "underperform" rating and $17 price target -- 22.7% below current levels and territory not seen since March 2009. Even before today, Abercrombie & Fitch Co. had given back over 21% in 2015, and short sellers have been rolling the dice on additional losses. By the numbers, nearly 35% of ANF's float is sold short, accounting for almost two weeks' worth of trading, at average daily volumes. There's a chance more struggles are ahead for the equity, too, given that six brokerage firms still deem it a "strong buy."

  • Amid increasing speculation the company could merge with Time Warner Cable Inc (NYSE:TWC), CHTR is up 1.5% today at $190.21, even after seeing some bearish analyst attention. Specifically, the stock's price target was reduced at Baird (to $190) and Canaccord Genuity (to $205), though the latter kept its "buy" endorsement. Elsewhere, Raymond James raised its price target to $210 -- territory yet to be charted. All of this comes after the company reported disappointing first-quarter numbers on Friday. On the sentiment front, Charter Communications, Inc.'s Schaeffer's put/call open interest ratio (SOIR) of 2.06 ranks in the 96th annual percentile, meaning short-term speculators have rarely been as put-skewed as they are now.


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