Analyst Downgrades: Tesla Motors, Silver Wheaton, Intel

Analysts downwardly revised their ratings and price targets on Tesla Motors Inc (NASDAQ:TSLA), Silver Wheaton Corp. (USA) (NYSE:SLW), and Intel Corporation (NASDAQ:INTC)

Jul 8, 2015 at 9:49 AM
facebook twitter linkedin

Analysts are weighing in today on Elon Musk-led Tesla Motors Inc (NASDAQ:TSLA), Canadian mining firm Silver Wheaton Corp. (USA) (NYSE:SLW), and semiconductor giant Intel Corporation (NASDAQ:INTC). Here's a quick roundup of today's bearish brokerage notes on TSLA, SLW, and INTC.

  • TSLA is dealing with bearish analyst attention for the second straight morning, as Pacific Crest lowered its opinion on the shares to "sector weight" from "overweight." According to the brokerage firm, "From root-level technology and manufacturing all the way to sales and marketing, Tesla's differentiation relative to its peer group is nothing short of total ... We simply believe the stock price now more fully reflects these core attributes."  Elsewhere, however, Baird said the recent rash of downgrades has created a buying opportunity for Tesla Motors Inc. Out of the gate, the stock is 4.1% lower at $256.88. Among options expiring in three months or less, traders have been more call-skewed than normal, according to TSLA's Schaeffer's put/call open interest ratio (SOIR). This indicator stands at 1.00 -- lower than 80% of readings from the past year. This seemingly bullish sentiment could have something to do with the shares outperforming the S&P 500 Index (SPX) by 28.4 percentage points in the past three months. 

  • At $15.76, SLW is up almost 2% this morning, despite Tuesday's news Canadian officials are re-examining the company's tax practices, which may result in the mining firm paying $200 million or more in fees. Analysts have been quick to turn their back on the stock, with no fewer than four brokerage firms reducing their price targets. For example, BMO Capital lowered its price to $20, and Morgan Stanley reduced its target to $22. The shares have already underperformed substantially, off roughly 42% during the past 12 months. One group that's likely disgruntled today is option players. During the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), more than seven Silver Wheaton Corp. calls have been bought to open for each put. The corresponding ratio of 7.17 is only 4 percentage points from an annual bullish high. The shares could see additional pressure, if these bulls begin to throw in the towel. 

  • INTC is down 1.3% at $29.52, after Bernstein, B. Riley, and UBS each lowered their price targets. This downbeat attention comes only a few days after the company made some front-office changes, and now the shares are 18.7% below breakeven in 2015. However, Intel Corporation's 14-day Relative Strength Index (RSI) was 32 -- near oversold territory -- coming into today. It wouldn't be surprising, given this indicator's historically respectable accuracy, to see the shares move higher in the near future. Finally, INTC will report earnings one week from tonight, which could provide a boost. In the session following its last trip to the confessional, the stock gained 4.3%.
A one-stop shop for the day's biggest headlines and more… Sign up now to get Schaeffer's Market Recap delivered straight to your inbox!

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners