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

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

by Alex Eppstein

Published on Aug 19, 2015 at 9:41 AM

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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