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Analyst Downgrades: Canadian Solar, Yahoo!, and Web.com

Analysts downwardly revised their ratings on Canadian Solar Inc. (CSIQ), Yahoo! Inc. (YHOO), and Web.com Group Inc (WWWW)

Aug 19, 2015 at 9:41 AM
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Analysts are weighing in today on clean energy issue Canadian Solar Inc. (NASDAQ:CSIQ), online media maven Yahoo! Inc. (NASDAQ:YHOO), and Internet services provider Web.com Group Inc (NASDAQ:WWWW). Here's a quick roundup of today's bearish brokerage notes on CSIQ, YHOO, and WWWW.

  • A dramatic fall in second-quarter profits, coupled with a disappointing current-quarter revenue forecast, has CSIQ in the bearish crosshairs. Specifically, Canaccord Genuity and Roth Capital cut their price targets to $40, while J.P. Morgan Securities lowered its target price to $36. Out of the gate, Canadian Solar Inc. has plunged 18.7% to $20.08 -- easily wiping out its year-to-date gain. This is excellent news for option bears. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CSIQ's 50-day put/call volume ratio is registered at an annual high of 1.84, with long puts nearly doubling calls.

  • YHOO got hit with a price-target reduction to $56 from $62 at Cantor Fitzgerald. (Bernstein, meanwhile, upped its outlook on the shares to "outperform" from "market perform.) The price-target cut better reflects the stock's technical performance, with the shares plummeting 30% year-to-date to trade at $35.33 -- and facing consistent pressure from their 10-day moving average. In fact, one week ago, Yahoo! Inc. touched an annual low of $33.85. Amid this downtrend, option bears have been piling on. YHOO's 50-day ISE/CBOE/PHLX put/call volume ratio of 0.50 ranks just 11 percentage points from a 52-week peak.

  • Following yesterday's revelation of a massive data breach, WWWW received a price-target cut to $31 from $32 at Piper Jaffray. As such, the shares are down 10.6% at the open to linger near $21.25. Heading into today's session, though, Web.com Group Inc had been a technical outperformer, rallying over 25% year-to-date, thanks to a recent bounce from its 80-day moving average. Meanwhile, the brokerage crowd is pretty optimistic toward the stock, with two-thirds of covering analysts doling out "buy" or better ratings -- and not a single "sell" opinion to be found. Also, WWWW's consensus 12-month price target of $28.55 sits in annual-high territory.

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