Analyst Update: Sunedison, EOG Resources, Monster

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

Aug 7, 2015 at 2:37 PM
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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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