Analyst Downgrades: Skyworks, Tesla Motors, Twitter

Analysts downwardly revised their ratings on Skyworks Solutions Inc (SWKS), Tesla Motors Inc (TSLA), and Twitter Inc (TWTR)

Oct 6, 2015 at 9:30 AM
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Analysts are weighing in today on semiconductor issue Skyworks Solutions Inc (NASDAQ:SWKS), electric automaker Tesla Motors Inc (NASDAQ:TSLA), and microblogging platform Twitter Inc (NYSE:TWTR). Here's a quick roundup of today's bearish brokerage notes on SWKS, TSLA, and TWTR.

  • SWKS said last night it has agreed to purchase PMC-Sierra Inc (NASDAQ:PMCS) for $2 billion in cash, and added it expects its fiscal fourth-quarter results to be better than original guidance. Nonetheless, Topeka Capital slashed its price target on Skyworks Solutions Inc to $100 from $120. The bearish note is curious, considering the stock has added 12.6% year-to-date at $81.87 -- and its effects are negligible this morning, with the shares up 2.2% pre-market. More broadly speaking, the brokerage bunch is extremely bullish toward SWKS. Fifteen of 17 analysts have handed out a "buy" or better assessment -- with not a single "sell" in sight -- and the equity's consensus 12-month price target stands in record-high territory, at $117.91.

  • TSLA saw its price target cut to $450 from $465 at Morgan Stanley, with the brokerage citing a higher-than-expected price for the newly launched Model X SUV. The note is taking a toll ahead of the bell, as the shares are down 2.1%. Longer term, however, Tesla Motors Inc has tacked on 10.7% year-to-date to trade at $246.15, and has outperformed the broader S&P 500 Index (SPX) by 8.1 percentage points over the past two months. Short sellers haven't been deterred by the equity's technical strength. Specifically, 26.3% of TSLA's float is sold short, representing 7.3 days' worth of pent-up buying demand, at typical volumes. If these bears decide to hit the exits, it could accelerate the stock's drive higher.

  • TWTR has lost over one-fifth of its value in 2015 to trade at $28.15, and further losses could be in store today after Pacific Crest slashed its price target on the security to $40 from $52. Given the stock's long-term struggles, it's surprising to see that 11 analysts still maintain "strong buy" opinions, and Twitter Inc's consensus 12-month price target rests at $38.74 -- territory not charted since mid-July. This could set the stage for another round of bearish brokerage attention. Elsewhere, option traders are already in the skeptics' corner. TWTR's 50-day put/call volume ratio of 0.44 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 99th percentile of its annual range.

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