Analyst Downgrades: Baidu Inc, Yelp Inc, and Chesapeake Energy Corporation

Analysts downwardly revised their ratings on Baidu Inc (ADR) (BIDU), Yelp Inc (YELP), and Chesapeake Energy Corporation (CHK)

by Alex Eppstein

Published on Jul 28, 2015 at 9:40 AM

Analysts are weighing in today on Beijing-based search engine Baidu Inc (ADR) (NASDAQ:BIDU), business review site Yelp Inc (NYSE:YELP), and oil-and-gas issue Chesapeake Energy Corporation (NYSE:CHK). Here's a quick roundup of today's bearish brokerage notes on BIDU, YELP, and CHK.

  • BIDU is smarting this morning, following an earnings miss, weak current-quarter guidance, and a resultant round of bearish analyst notes. Among the brokerages weighing in are Pacific Crest and Brean Capital -- which lowered their opinions to the equivalent of a "hold" from a "buy" -- and Piper Jaffray, which slashed its price target to $210 from $230. As such, Baidu Inc has plunged 13.5% at the open to trade at $171.25 -- a bigger-than-expected post-earnings move -- and skimmed a new annual low of $170.22. There's plenty more room for additional bearish attention, as 73% of analysts consider the stock a "strong buy," with not a single "sell" to be found. Similarly, BIDU's average 12-month price target of $242.96 represents a 42% premium to the current price.

  • YELP is down 2.5% in early trading at $32.92, ahead of tonight's earnings release. Expectations are low heading into the event, with short interest soaring 43.2% during the latest reporting period -- and now representing 17% of the equity's float. In addition, Yelp Inc's rating was downgraded to "hold" from "buy" at Deutsche Bank, which also slashed its price target to $33 from $56. Of course, the shares haven't given the Street many reasons to be confident. YELP has surrendered roughly 40% this year, and earlier touched a two-year low of $32.55.

  • Spiraling oil prices have crushed energy stocks, and CHK is no exception. Although the shares are 1.1% higher this morning at $8.48, they're down nearly 57% year-to-date, and hit a 12-year low of $8.11 yesterday. Earlier, Wunderlich weighed in on a number of energy names, including Chesapeake Energy Corporation -- reducing its price target to $13 from $24. Wunderlich isn't alone in its bearish assessment. Eighty-five percent of covering analysts have tagged CHK with a "hold" or worse opinion, while almost 30% of the stock's float is sold short -- representing nearly two weeks' worth of activity, at typical volumes.

Want an even earlier advantage on the biggest news before the bell? Sign up now to get Schaeffer's Opening View delivered straight to your inbox!


A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.
Google Postpones Android Reveal, "Now is Not the Time to Celebrate"
"Now is not the time to celebrate," Google said in a message on its website
ZNGA Zooms to 8-Year High on Billion-Dollar Deal
ZNGA is planning to buy Peak for $1.8 billion
Huge New Legal Marijuana Market Has Shortage Crisis
250 million Europeans have access to medical marijuana. There's already a shortage....