Analyst Update: Sunedison Inc, EOG Resources Inc, and Monster Beverage Corporation

Analysts adjusted their ratings on Sunedison Inc (SUNE), EOG Resources Inc (EOG), and Monster Beverage Corporation (MNST)

by Mark Fightmaster

Published on Aug 7, 2015 at 2:37 PM

Analysts are weighing in today on energy firms Sunedison Inc (NYSE:SUNE) and EOG Resources Inc (NYSE:EOG), and energy drink provider Monster Beverage Corporation (NASDAQ:MNST).

  • Yesterday was a bad day for clean power firm SUNE, and today isn't much better. Specifically, Sunedison Inc yesterday lifted its installation forecast and announced buyout news, and the stock plummeted as a result. Today, SUNE is down another 11.5% at $15.13 -- on pace for its worst two-day stretch in two years -- exacerbated by negative analyst notes. Wolfe Research downgraded SUNE to "peer perform," Needham lowered its price target on SUNE to $30, and Credit Suisse cut its price target to $35 from $45. SUNE has surrendered more than 35% so far in August, and is on pace to end beneath its 10-month and 20-month moving averages for the first time since late 2012. One could say the stock is finally living down to what option players expect, as SUNE's Schaeffer's put/call open interest ratio (SOIR) of 0.71 is higher than 91% of the readings taken in the past 52 weeks. Short sellers have also taken a shine to the stock, as more than 30% of its float is sold short. Today, however, the shares are on the short-sale restricted (SSR) list.
  • EOG said its quarterly profit plummeted 99%, due to sinking crude prices. Even though per-share results topped expectations, and the firm said it made deep cost cuts, EOG Resources Inc is more than 4% lower at $74.02 -- within a couple points of annual-low territory -- this afternoon, as energy stocks are following oil into the red. In the wake of the news, Raymond James cut its price target to $88 from $102, and UBS lowered EOG's target to $85 from $96. Technically, EOG is staring up at resistance from its 10-week moving average, lurking overhead in the $80 region. However, the shares seem to have found a foothold atop their 50-month moving average, in the $74 neighborhood.    
  • Finally we have MNST, which fell short of quarterly earnings expectations due to higher costs related to a distribution deal with The Coca-Cola Co (NYSE:KO) -- which owns a 16.7% stake in Monster Beverage Corporation. The stock initially sold off in after-hours trading, but rallied out of the gate today, and is trading 2% higher at $147.71 this afternoon. Meanwhile, several brokerage houses raised their price targets on the energy drink maker. Jefferies hiked its target to $133, SunTrust Robinson raised its target to $145 from $130, and UBS and RBC raised their targets to $166 -- in uncharted territory. Technically, the stock has been a beast, pegging a record high of $155.83 earlier this week, and gaining more than 135% in the past 52 weeks. While MNST's performance continues to ramp up, pessimism reigns in the option pits. MNST's SOIR of 1.46 is higher than 98% of the past year's worth of readings. If this pessimism unwinds, the stock could enjoy further upside momentum.
For other stocks in analysts' crosshairs, read Analyst Upgrades: Netflix, Inc., NVIDIA Corporation, and Zynga Inc. and Analyst Downgrades: Ubiquiti Networks Inc, Iconix Brand Group Inc, and Micron Technology, Inc. 

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