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Analyst Downgrades: Schlumberger, GrubHub, Trina Solar

Analysts downwardly revised their ratings on Schlumberger Limited (NYSE:SLB), GrubHub Inc (NYSE:GRUB), and Trina Solar Limited (ADR) (NYSE:TSL)

Aug 26, 2015 at 9:43 AM
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Analysts are weighing in on oil-and-gas issue Schlumberger Limited (NYSE:SLB), food delivery service GrubHub Inc (NYSE:GRUB), and alternative energy concern Trina Solar Limited (ADR) (NYSE:TSL). Here's a quick roundup of today's bearish brokerage notes on SLB, GRUB, and TSL.

  • J.P. Morgan Securities chimed in on a number of energy-related names, and for SLB, this resulted in a price-target cut to $87 from $101, which still represents expected upside of 21.7% to the stock's current perch at $71.47. What's more, the shares earlier touched an annual low $70.51, after Schlumberger Limited unveiled a nearly $15 billion purchase. Longer term, the security has shed 16% year-to-date. Should the shares continue to struggle, more downbeat analyst attention could come down the pike. Currently, 71% of brokerage firms maintain a "buy" or better rating on SLB, while the average 12-month price target of $101.19 stands in territory not charted since last October.

  • Barclays cut its rating on GRUB to "equal rate" from "overweight" and reduced its price target by $10 to $32. As a result, the shares are down 5.1% at $26.22. Coming into today, the stock had already given back roughly 24% in 2015. Against this backdrop, Wall Street has been growing increasingly wary of GrubHub Inc. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GRUB's 50-day put/call volume ratio of 0.59 sits just 3 percentage points from a 52-week peak. Elsewhere, short interest surged almost 84% over the last two reporting periods, and now accounts for 16.7% of the stock's available float.

  • Axiom isn't buying TSL's big bounce from yesterday, and initiated coverage on the stock with a "sell" rating. Nevertheless, the shares are up 0.9% at $8.57, disregarding the bearish brokerage note, as well as another sharp sell-off in China. On the sentiment front, speculators are more put-skewed than usual toward options set to expire in three months or less. Specifically, Trina Solar Limited's Schaeffer's put/call open interest ratio (SOIR) of 0.82 ranks in the 83rd percentile of its annual range.

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